S1E28: Are share buybacks good for investors? BT Mark to Market (Ep 28)

Published: Feb. 12, 2023, 4 p.m.

Synopsis: Listen to Senior Correspondent Ben Paul's analysis and insight on market trends and corporate issues in Singapore in this podcast series based on his weekly column in The Business Times.

Share buybacks are a means of returning cash to investors. But they discriminate between existing shareholders and continuing shareholders. Ben Paul explains why investors should carefully consider if these exercises are in their best interest, and press corporate boards to raise their game.

Highlights: 

02:10 A signal business is thriving, and stock prices are too low

05:37 Why companies often pursue buybacks at the wrong time

07:53 Companies repurchase their shares too opportunistically 

10:46 Warren Buffett’s approach to buybacks should be emulated

13:39 Investors can vote against share purchase mandates at AGMs 

Produced by: Ben Paul (benpaul@sph.com.sg), Howie Lim and Claressa Monteiro

Edited by: Howie Lim

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