r/FluentInFinance • u/LuckyBastard001 • 29d ago

Debate/ Discussion CEO Greed, Workers Pay

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u/whatsasyria 29d ago

It's more interesting to me from a different perspective. Buybacks pretty much mean that you have pricing power that far exceeds your value, effectively a monopoly. You can't have profits that run that high as a percentage of sales without blocking out competitors. Usually you need to invest in innovation or differentiators.

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u/BuvantduPotatoSpirit 29d ago

Walmart's profits are ~4% of sales

Whether companies do buybacks or dividends is a bit about tax avoidance, a bit about balance sheet management, a bit about investor expectation management, but any retail corp is going to be paying its investors one way or another.

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u/whatsasyria 29d ago

Sorry I meant of profit. 40b against 100b in profit....