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Paul Tudor Jones says 'mania' in share buybacks threatens to have 'social consequences'

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Jones is noted for making broad market calls and predicted the 1987 stock market crash.
Hedge fund manager Paul Tudor Jones issued a call for more responsible investing, saying that the craze over stock buybacks is causing troubling social ills.
„I think we’ve got a mania going on in buybacks and a mania going on in terms of shareholder primacy,“ Jones told CNBC’s Bob Pisani on the sidelines Monday of the Inside ETFs conference in Hollywood, Florida. He added that the focus solely on shareholder profits has helped cause major wealth disparities and is a departure from the way corporate boards used to behave.
„Things have been different and can be different again, and if they’re not I’m really nervous about what the ultimate social consequences are in this country,“ he said.
U. S. companies bought back more than $1 trillion of their own shares in 2018, helping to keep afloat a market that turned in an otherwise lackluster performance as the S&P 500 was off more than 6 percent for the year.

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