[aslkdjaslkdj1]

>If you want to argue against buybacks, you need to argue that they are worse than other methods of returning cash to shareholders.

He does make that argument. He argues that buybacks incentives cause a higher % of net income to be spent on buybacks than dividends.

>We found that from 1981 to 1983, these companies spent 4.3 percent of profits on buybacks. In comparison, from 2014 to 2016, these same companies spent 59 percent of their profits buying back their own stock. Dividends absorbed just under half of profits in both periods.

[darawk]

Profit is not necessarily the same thing as net income. Net income is Revenue minus Cost of Goods Sold. Overall profit includes capex. If you use the 'net income' definition, then yes, he makes that point.

[aslkdjaslkdj1]

You are thinking of gross income. Net income includes depreciation for assets acquired under capital expenses.

[darawk]

You're right. Gross income is the correct measure. Then his paper uses the wrong measure too.