An IBM Case Study for Warren Buffett's "Economically Illiterate"

Rather than shortchange Warren Buffett and write an article for clickbait, here is what he wrote about share buybacks in his report to shareholders this year (2023).

​"When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive) [emphasis above is Warren Buffett's not mine.]."

It would be my contention that "anytime" a writer uses the words "all" or "every" or "always" that the reader should raise their level of distrust ... just a bit ... to catch a possible misleading generalization. Rarely is anyone always or in every way, one thing or another ... be skeptical and inquisitive.

Select the image above or the icon below to read an IBM Case Study: Do Share Buybacks Work?No, all repurchases aren't harmful, but historically some have been, and Warren Buffett--at one time--bought into IBM's share buyback strategy, and then got out. He should have used IBM as an example to ensure we all are not . . .

. . . economically illiterate!

Cheers,

​- Peter E.

An IBM Case Study: Do Share Buybacks Work?