It seems for Buffet, he perfers management to use extra cash to buy back shares if its not being reinvested, the reason being that if the company is chartering outside of its usual business (i.e. if coca-cola were to buy a film industry) that its not under its expertise. Overhead (SG&A) would be higher I would assume, and the company would run less efficiently. (Am I right there? Just trying to interpret diff opinions) It seems like acquisitions seem to be good only if its in the same industry to keep the same management expertise (assuming you are investing in a company with good management, i.e. not Ford, GM, AIG, et al).
BTW ... markets have went really bearish to really bullish the past few hours. Down 3% to up 3% lol.
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