"No One Cares About Your Dividends"
"The debate about buybacks vs. dividends has been going on for over a century. I’m not here to try and change your mind. I can see the relative merits of both..."
One of my favorite investors that I love reading and following, Harris Kupperman, has offered up his thoughts on dividends versus buybacks this week.
Harris is the founder of Praetorian Capital, a hedge fund focused on using macro trends to guide stock selection.
Harris is one of my favorite follows and I find his opinions - especially on macro and commodities - to be extremely resourceful. I’m certain my readers will find the same. I was excited when he offered up his latest thoughts, published below. Content has been edited slightly for grammar.
Please be sure to read both my and Harris’ disclaimers, located at the bottom of this post.
Just Smash the Buybacks
Great! Another E&P that raised the quarterly dividend by two cents. Who F*cking Cares!?
The debate about buybacks vs. dividends has been going on for over a century. I’m not here to try and change your mind. I can see the relative merits of both, especially as many buybacks have been undertaken at insane valuations, leading to value-destruction.