The Rise of the Tech Giants – Market Value In terms of returns to shareholders, Jeff Bezos (Amazon) is behind Elon Musk (Tesla) and Bill Gates (Microsoft) since flotation or during the CEO’s tenure. Image: Financial Times
Cumulative Market Cap Growth vs. Cumulative Executed U.S. Buybacks Through the current cycle, U.S. buybacks have returned about $5.5 trillion to shareholders. Image: J.P. Morgan US Equity Strategy & Global Quantitative Research
Japan Stock Market Japan holds more than 4% of the domestic stock market, making the BoJ the top shareholder of more than 55 companies in the Nikkei 225. Image: Macrobond Financial
What if Companies Paid Dividends Instead of Buybacks? The S&P 500 Total Return (dividends reinvested) would have been 10% lower if buybacks subbed with dividends. But, are stock buybacks a good thing for shareholders? Yes, if done at a price below the intrinsic value of the company. Buybacks are a good substitute for dividends, because…