[jamesknelson]

> The mystery that remains is where does the money go? A share buyback just shifts the decision of reinvesting profits from the firm to the investor, so when Apple buys back shares where does that capital go?

This was my main question from the article too. After thinking it through for a bit though, I think the answer may be related to the large and increasing US trade deficit.

In short, the money goes to the actually growing economies of East Asia and other parts of the world. If not in exports, then in ownership of future cashflows from American businesses.

American workers send their money overseas in exchange for cheap goods, which foreign powers then use to purchase control of those workers' future labor via ownership of American companies.

There's no such thing as a free lunch.

[nerdponx]

Is it as simple as foreign companies purchasing control over American labor? Surely they have other things to do with that money.

[maccolgan]

Maybe investing in the Vancouver real estate market.

[fxtentacle]

Buying parts of London through offshore shell companies?