The author criticizes Warren Buffet's assertion that buybacks are good the shareholders, writing "Warren Buffett should spend more time reading blogs like Ultimi Barbarorum."
I've spent a lot of time reading Buffet, and he's pretty clear that he doesn't believe in equity-based compensation for employees. He believes that if employees want to own part of the company where they work, they should take their salary and go buy stock on the open market.
So, at least Buffet is consistent in his own view of the world. He's no hypocrite, and he's not guilty of what the author is accusing him of. The author should go read more of Buffet's writings.
That being said, I disagree with Buffet and believe that the Silicon Valley model of throwing equity compensation to rank-and-file employees is justified. The author's point that share buybacks don't all go to the shareholders is definitely true in general. But it is certainly less true or not true at all with regards to Berkshire Hathaway (Buffet's company).
I've spent a lot of time reading Buffet, and he's pretty clear that he doesn't believe in equity-based compensation for employees. He believes that if employees want to own part of the company where they work, they should take their salary and go buy stock on the open market.
So, at least Buffet is consistent in his own view of the world. He's no hypocrite, and he's not guilty of what the author is accusing him of. The author should go read more of Buffet's writings.
That being said, I disagree with Buffet and believe that the Silicon Valley model of throwing equity compensation to rank-and-file employees is justified. The author's point that share buybacks don't all go to the shareholders is definitely true in general. But it is certainly less true or not true at all with regards to Berkshire Hathaway (Buffet's company).