Why Shareholder Buybacks are Good

Shareholder buybacks do two things that do create economic value:

• Provide liquidity to exiting investors so they can go invest in other businesses creating economic investment elsewhere

• Allows the remaining shareholders to have non-taxable appreciation but also creates headroom for capital raising later when the company needs it.

Shareholder buy back are not a bogeyman for you to complain about because you wish they spent the money your way.