https://talkmarkets.com/content/us-markets/stock-buybacks-arent-bad-just-misused--abused?post=213634
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So we shouldn't be excited about what a great year 2018 was?
When a company uses cash to buy back shares, they have less to grow their business.
Share repurchases have a very limited, one-time effect, on the company. This is why once a company engages in share repurchases they are inevitably trapped into continuing to repurchase shares to keep asset prices elevated. This diverts the ever-increasing amount of cash from more productive investments.
Look at the recent news about XOM and Chevron investing in the Permian. COP is content to sit on what we have and raise the share price with the illusion of share repurchases instead of actually trying to grow the company. No wonder the organization needs to shrink every year!
Remember that although the P in SPIRIT stands for People, it really only means the people who are shareholders, and only those looking for a short term investment.