For example, from 2003 through 2012, S&P 500 companies used 54% of their earnings to buy back their own stock and an additional 37% for dividends, leaving a lack of funds for investing in production growth or employees, according to data from the Harvard Business Review.
Good morning, unfortunately I have to admit , the greed at the top has been disgraceful. Why can’t the top net worth capitalists add a billion plus to the pension plans of their employees , would it really matter to Gates, Musk, Bezos, Buffett , etc?
That’s another issue. Starbucks, MSFT, tsla etc don’t become great without great employees. Guys with 50 billion plus can add a billion to their employee pension plans now and then , just sayin. It would be worth more than that in good will.
Absolutely they have nothing to do with totally incompetent, greedy management. It is all the failure of labor? You have no idea of what you are talking about. Specifically study the car manufacturers to understand unions are blamed for many things that is utter failure of the management.
Let us switch the industry, the banks, (ultimate capitalists right) they go down periodically, which union are you going to blame? union of Greedy CEO’s?
“” Where will the money come from ?”” What? The Walton family, etc takes a billion of its wealth and contributes to the employee pension plan , this is confusing ? I’m a capitalist pal, I took many small cap companies public in the 80s and early 90s, being a , compassionate capitalist, makes me a socialist ? I’m not proposing we put a gun to anyone’s head, compassion and doing right, simple concepts.
“” good morning, let’s not forget Buffett has had too much cash for decades. As a few of us suggested in 2008, he should have authorized a buyback, at material discounts to IV, in 2008 after the donation letter. Brk should have the, right of first refusal, on all brk stock sales by the Gates Foundation, etc. However, net, net, I would argue Buffett has earned his 100k a year the past four decades.
Buffett’s cash holdings, as referenced, have fluctuated in a comparatively very narrow range relative to the investment portfolio or market cap. Ballpark 15% of market cap–and its been pretty steady–remember half the company is op cos so a % of investment portfolio overstates cash by 50% and is not accurate. No comparison with Grantham–unless you go back 50+ years when Buffett dissolved the partnership.
Grantham has made seismic shifts in and out of cash, and in and out of US equities. It’s really no comparison. And Grantham the past couple decades has only been rewarded during large US equity declines. The opportunity cost has been massive for his clients.