While some people are struggling to find protective gear, others are buying beachfront condos and NYC apartments, Chamath Palihapitiya says, doubling down on his argument against buybacks. “It’s totally broken.”
"Buybacks are the primary example of a growing strain of incompetence amongst CEOs and amongst boards," Palihapitiya said on CNBC's"And it's where we need to start thinking about how the rules need to change."
"Since 2009, the 500 companies in the S&P 500, they bought back $7 trillion of stock and or issued dividends that turned out to be more than 90 cents of every dollar of profit that they made over the last 11-plus years. The federal government, as well as the Fed, between monetary and fiscal stimulus combined, have essentially transferred around $7 trillion now back to those said companies as well as companies slightly smaller than them," he added.
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