> The businesses that have the best long term performance over the previous decades are the ones that have done the most buybacks, hence buybacks do not cause short term-ism
This is mixing up cause and effect. If I have lots of free cash flow, then I can do buybacks which increases EPS. Lots of free cash flow is associated with better performance, which is perhaps why people believe this.
This is mixing up cause and effect. If I have lots of free cash flow, then I can do buybacks which increases EPS. Lots of free cash flow is associated with better performance, which is perhaps why people believe this.