Jamie Dimon says buybacks are active investment decisions, not just capital returns

JPMorgan's CEO used the bank's Q2 earnings call to argue companies should prioritize organic growth rather than rely on M&A to mask weak internal expansion.

Summary

Jamie Dimon said share buybacks should be treated as an active investment choice rather than a simple way of returning capital to shareholders. Speaking on JPMorgan's Q2 earnings call Tuesday, he also said companies should stop using M&A (mergers and acquisitions) as cover and instead put more emphasis on organic growth.

Terms & Concepts
  • buybacks: Company repurchases of its own shares
  • M&A: Mergers and acquisitions between companies
  • organic growth: Business expansion from core operations