Below are some of the best reads on the topic of capital allocation, with a specific nod to share buybacks. Given the amount of misinformation surrounding this topic, we curated the best literature across academia, Wall Street, and traditional media.
(If there is anything wonderful I missed, please let me know)
Enjoy!
AQR: Buyback Derangement Syndrome, 2018
Warren Buffett: Annual letter, 2018
Aswath Damodaran: Stock Buybacks: Minunderstood, Misanalyzed, and Misdiagnosed, 2015 (Also data download ). Podcast with Ritholtz, 2023.
EPOCH: The Case for Shareholder Yield, 2005
Meb Faber: Shareholder Yield, 2013
Goldman Sachs: Top of Mind: Buyback Realities, 2019
JP Morgan: Annual Report, 2018
Man GLG: STOCK BUYBACKS: FREEING THE INVISIBLE HAND, OR LEGITIMISING THE FAT FINGER, 2019
Michael Mauboussin: Capital Allocation 2022, Disbursing Cash to Shareholders, Frequently Asked Questions about Buybacks and Dividends, 2014, Share Repurchases from All Angels, 2012
Ned Davis: Blaming Buybacks, 2018 ($)
OSAM: The Power of Share Repurchases, 2014, High Conviction Buybacks, 2015, Buyback Bulls and Bears, 2016
Robeco: Conservative Investing, 2022
Two Sigma: Share Buybacks: A Brief Investigation, 2019
William Thorndike, The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success, 2012
Ed Yardeni, Stock Buybacks: The True Story, 2019 and charts here
Jason Zweig: The Fireworks Over Share Buybacks Are Duds, 2019, and Stock Buybacks Aren’t Bad. They Aren’t Good, Either, 2023.
Nicholas Grant et al: Share Repurchases on Trial: Large-Sample Evidence on Share Price Performance, Executive Compensation, and Corporate Investment, 2022
Nice flowchart from Josh Wolfe HT Mauboussin
