In light of buybacks being back in the news with the proposal to increase the tax, I thought I’d write about how companies should think about buybacks since many do it wrong. First, quickly, buybacks shouldn’t be political. As you will see from my framework, they are a rational decision Continue Reading
A Better Way To Think About Excess Capital
Summary:Acquisitions should be measured not just vs. WACC but vs. the opportunity cost of finding a better deal laterWACC is a flawed concept as it doesn’t address the cost of financial distress which increases with more leverage We live in a world of low interest rates and thus low borrowing Continue Reading