Goldman Sachs: Share Buybacks to Rise

The transcript discusses the shift in focus of portfolio managers towards revenue growth and the importance of capital expenditure (CapEx) for companies to expand. It highlights the potential for economic growth through increased CapEx and debates the role of government stimulus in infrastructure spending. The pressures on corporate boards to prioritize dividends and share buybacks over investment are examined. Finally, the transcript explores trends in strategic mergers and acquisitions, emphasizing the importance of acquiring operating assets within the same industry for growth opportunities.

What are portfolio managers currently focusing on to drive company growth?

• Lowering product prices

• Decreasing employee count

• Increasing capital expenditure

• Reducing operational costs

What is the expected growth rate for capital expenditure in some industries?

• 8-9%

• 6-7%

• 3-4%

• 1-2%

What was a missed opportunity during past recessions according to the speaker?

• Increasing taxes

• Cutting government spending

• Reducing interest rates

• Aggressive fiscal policy for infrastructure

What is one of the pressures faced by corporate boards according to the discussion?

• Expanding into new markets

• Raising dividends and share buybacks

• Increasing employee benefits

• Reducing environmental impact

What trend is being observed in mergers and acquisitions?

• Reducing the number of acquisitions

• Acquiring companies in different industries

• Focus on financial engineering

• Strategic acquisitions within the same industry