From The Reformed Broker:

... Normally I detest buybacks. The primary reasons are:

– They usually occur at the top of a cycle and are a sign of a top when they peak en masse.

– They usually are used to masking massive stock option issuance to enrich insiders, while doing nothing other than offsetting dilution to shareholders.

– They are financial engineering and are thus suspect.

– They are inferior to dividends.

– They can be a sign that management has no idea what to do to grow or improve a business.

But Buffett is not masking stock issuance, he is...

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