Bill Gates presents himself as a climate champion, but his trust has actually increased its fossil fuel investments since his divestment pledge. It’s just the latest example of the billionaire appointing himself to solve problems he helps perpetuate.
And why would a company want to buy pack? Who is getting the money? The investors. who owns the company?.. the investors. So quite literally the company is getting the money generated by profits. And buying pack is reducing the amount of shares making the investors more wealthy by increasing their proportion of ownership.
Yes buying back makes investors more wealthy at the cost of the company’s cash. Like I said, it’s similar to a dividend in that the company is giving money to the investors. Instead of cash which is taxable, they are giving their cash in the form of stock value to the investors.
The company does not get any cash from a buy back. They are spending money. The company has less money after a buy back. The market cap is technically unchanged but can go down afterwards because the company has lost money buying back the shares.
Losing money on a buy back is not an example of a company making money from the value of their stock.