It's genuinely interesting to see Google fund this with equity versus debt.

It's also interesting watching Alphabet buy back $100 billion of stock over the last two years, when the price was half what it is today, only to turn around and sell shares now at the higher price.

I know GAAP accounting won't recognize any capital gain on these treasury operations, but from an economic standpoint this financial judo creates a lot of value for existing shareholders.

	▲	sethops1 an hour ago \| parent [-]
		"Buy low, sell high" isn't exactly financial manipulation.

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jamestimmins 2 hours ago | parent | prev | next [-]

My first thought was my finance professor telling us that companies always raise with equity when they think their equity is overvalued.

	▲	ip26 an hour ago \| parent [-]
		You’d think Berkshire would be at least passingly aware of that principle, though.

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3ffd 5 hours ago | parent | prev [-]

Really? lol.

Tech firms should always have a buffer and never get too close to the optimal debt ratio.

I think they have learned a lot re. what happens if you are asleep at the wheel now.

	▲	JumpCrisscross 5 hours ago \| parent [-]
		> Really? Yes. Their competition is deploying debt and Google has low leverage. They also have $100+ billion cash on their balance sheet. > Tech firms should always have a buffer and never get too close to the optimal debt ratio ...why is this especially applicable to tech firms? (Or a tech firm like Google?)