Buyback is when a company buys back its shares from shareholders. Generally, in buybacks, the shareholders get a profit as the shares are purchased at a higher price.
In this case, last year the US government imposed a 1% tax on buyback activities. Moreover, US President Joe Biden has already signaled that he has decided to raise this tax to 4%.
In this context, Warren Buffett has slammed those who say buybacks are dangerous for shareholders and those who say buybacks only benefit CEOs as having no economic knowledge.
Also, Warren Buffett said that those who bought the shares at the right price will benefit from the buyback activities. He also said that his shareholders will continue to save and get rich through income.
Apart from this, Warren Buffett has said that young investors should start their investment journey as soon as possible and once a few stocks are successful, miracles will happen in the portfolio. In reference to this, Warren Buffett said that after the flowers bloom, the weeds wither.