Hi Dr. Venki, thanks for the great write up! I saw you mentioned, **“$942.5 billion in stock buybacks in 2024 alone”** and was wondering if there is evidence that companies conducting the largest buybacks are consistently underinvesting in projects with higher long-term returns, suggesting management may be destroying shareholder value through poor capital allocation rather than creating value through efficient capital returns?
Thank you first for even reading it. It’s just a creative urge and always a pleasant surprise if anyone finds it useful! I’m not sure I can drum up the evidence to state that shareholder value is being destroyed. I think I can say that there was a lack of sufficient creativity to discover and mine great opportunities for investment of cash. If they are riding what others created, that’s when it shows. You know often, you can ride a creative surge over decades of a tail.
Thanks for responding! I’d love to connect further if possible. Would you be interested in jumping on a short call? What would be the best way to contact you further?
Hi Dr. Venki, thanks for the great write up! I saw you mentioned, **“$942.5 billion in stock buybacks in 2024 alone”** and was wondering if there is evidence that companies conducting the largest buybacks are consistently underinvesting in projects with higher long-term returns, suggesting management may be destroying shareholder value through poor capital allocation rather than creating value through efficient capital returns?
Thank you first for even reading it. It’s just a creative urge and always a pleasant surprise if anyone finds it useful! I’m not sure I can drum up the evidence to state that shareholder value is being destroyed. I think I can say that there was a lack of sufficient creativity to discover and mine great opportunities for investment of cash. If they are riding what others created, that’s when it shows. You know often, you can ride a creative surge over decades of a tail.
Thanks for responding! I’d love to connect further if possible. Would you be interested in jumping on a short call? What would be the best way to contact you further?