Berkshire Hathaway Inc (BRK.A)

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Buffett actually defends airline CEOs and their Ponzi stock buybacks. Why? Because buybacks are how Buffet’s business model profits so handsomely; it’s almost like insider trading or having a friend in Washington throw you a quasi-guaranteed bailout deal. Buffet likes buybacks because if companies were fiscally prudent, there would be fewer deals for Berkshire to scoop up. It would steal opportunity from Buffett – just like the recent Federal Reserve bailouts did.

A critical thinker may ask why Buffett would say “Now is not the time to bash CEOs who supported stock buybacks and dividend pay-outs.” Is this also true if many of these same CEOs borrowed massive sums to finance these buybacks and dividend payments? I think not. They borrowed from the future to enrich the CEO suites and activist investors by cannibalizing future growth and earnings.