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Politics : Ask Michael Burke

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To: Zeev Hed who wrote (54509)4/4/1999 1:32:00 PM
From: Knighty Tin  Read Replies (1) of 132070
 
Zeev, It is not really elementary as ROE is a measurement of the past, not the future. However, it is certainly smarter than what the companies are actually doing. BTW, the ROE should be higher, not lower, than the interest rate. I assume you meant that and just mistyped.

I don't know of one co. who does buybacks at the top the way you say they should. Much of the buybacks are simply transfers to insiders or other employees. In other words, they are using shareholder cash to line their own pockets. Which is why the shares outstanding never decline anywhere near the buyback rates.

Best,

MB
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