Wednesday, January 15, 2014

Jamie Dimon Comment on Share Buybacks

Looking back at my notes on JP Morgan's earnings call, I forgot to recount a somewhat offhanded comment the CEOmad  to a multi-part question from an analyst.  The analyst recounted  how much stock the company had bought back year-to-date, and  he asked whether or not the company would complete the current authorization in a big chunk.  It was an incredibly stupid question, but it elicited an interesting response.

CEO Dimon said something like this paraphrase, "When the stock was in the thirties, it was a once in a lifetime value.  We don't buy back shares just for the sake of doing it.....with the stock where it is now....(trails off)"

This is spoken like a CEO who understands the difference between price and value.  The big technology companies historically like buying shares like automatons.  I give the CEO kudos for saying something his mega-cap CEO peers should understand better.

No comments: