Will Stock Buybacks Cause the Demise of Capitalism?

8 Pages Posted: 16 Oct 2019

Date Written: October 6, 2019


Like previous economic systems, the capitalist system may be exposed to built-in mechanisms leading to its demise. One serious candidate to ruin capitalism is the practice of companies repurchasing their own shares. In this paper we extend the famous Warren Buffet analogy on CEO Fred Futile to show how unconstrained share buybacks could cause the demise of capitalism.

Keywords: Buybacks; Capitalism; Warren Buffett; Financial Markets

JEL Classification: G30, G35, B24, O16

Suggested Citation

Mendes, António Marques, Will Stock Buybacks Cause the Demise of Capitalism? (October 6, 2019). Available at SSRN: https://ssrn.com/abstract=3465068 or http://dx.doi.org/10.2139/ssrn.3465068

António Marques Mendes (Contact Author)

Universidade de Coimbra ( email )

Av. Dias da Silva, 165
Coimbra, 3004-512
+351-239790500 (Phone)

HOME PAGE: http://www.uc.pt/en/feuc

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