Warren Buffett Was Right; Some Corporations Have Been Doing Share Buybacks All Wrong

Once a little-known and nebulous idea, share buybacks have recently become a hot topic that lies at the intersection of business, investing, and politics.

Corporations have been increasingly opting to repurchase their own stock in recent years, thereby returning cash to shareholders in a nontaxable way, propping up earnings per share for remaining shareholders, and giving a vote of confidence in the business's future prospects.

For various reasons, presidential hopefuls like U.S. Sens. Elizabeth Warren and Bernie Sanders have called out the practice and made proposals to limit or ban them. Most corporate boards obviously argue the other direction.

Source Fool.com