Corporate CEOs, with their massive share-buyback programs are in effect investing in the stock market rather than in expanding business opportunities at their companies. Either they expect higher returns from the market, or lower returns in their business, or some combination of both. Given their questionable track record in timing the market, this may be a cause for concern.
~ Jim Chanos, "Does IBM Love or Hate Itself? Stock Buybacks Make Firms Look Attractive, but Also Deprive Them of Capital for Real Investment,"
WSJ, January 22, 2014