Jim Chanos: What Buybacks Tell You, His Short On Intel and Tesla's Big Problem

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Jan 16, 2015

Share buybacks can be a great thing, says Jim Chanos (Trades, Portfolio).

However, when everyone is just choosing to do it as a default use of capital, it is not necessarily so.

Chanos also points out that buybacks create more risk for a company because it reduces balance sheet strength. He points to Exxon as a company that is actually borrowing in order to buy back shares.