So, basically, when a company buys their own stock back (or issues a dividend), they are saying "We can't think of a single thing better to do with this money than simply hand it back to investors who might be able to put it to better use!" Doesn't give me a lot of confidence in the company, to be honest.
Why? The company is good at what it does. It generates money. Someone else is expert at something else, but needs capital. Why do you need one company to do everything on Earth?
Warren Buffet's wealth comes from finding companies who are good at what they do, and moving money from ones with excess cash to those that need more cash.
Would you rather put your money or capital into a company that promised to never do buybacks? To never, ever give you a return on your investment? Why would you buy that stock? Why would anyone ever buy that stock from you?
