Social Capital CEO Chamath Palihapitiya's case against stock buybacks, dividends
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- čas přidán 21. 04. 2020
- CNBC's "Halftime Report" is joined by Social Capital CEO Chamath Palihapitiya to discuss his latest deal, his view of the U.S. economy and markets.
Social Capital CEO Chamath Palihapitiya on Wednesday doubled down on his comments that the government shouldn’t bail out billionaires or allow buybacks amid the Covid-19 pandemic.
“Buybacks are the primary example of a growing strain of incompetence amongst CEOs and amongst boards,” Palihapitiya said on CNBC’s “Fast Money Halftime Report.” “And it’s where we need to start thinking about how the rules need to change.”
Palihapitiya was defending his comments from two weeks ago, when he said poor-performing CEO’s deserve to be “wiped out” rather than bailed out from coronavirus-related economic issues.
“I think why I was frustrated is that I just think that that kind of behavior makes no sense and instead of being punished, it has been rewarded,” Palihapitiya said Wednesday.
“Since 2009, the 500 companies in the S&P 500, they bought back $7 trillion of stock and or issued dividends that turned out to be more than 90 cents of every dollar of profit that they made over the last 11-plus years. The federal government, as well as the Fed, between monetary and fiscal stimulus combined, have essentially transferred around $7 trillion now back to those said companies as well as companies slightly smaller than them,” he added.
Palihapitiya has been critical of the United States’ economic reaction to the Covid-19 pandemic, saying that stimulus money should go directly to consumers and workers rather than businesses. The Federal Reserve has announced a slew of new moves aimed at getting trillions of dollars into businesses and governments, including its Main Street business lending program and market interventions, as part of an aggressive strategy to keep markets functioning and support the economy.
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STOP BRINGING THIS MAN ON. HE IS SMARTER THAN YOU.
david adelkun he comes on to use this clown as a floor mop.!!
lol
*keep binging him on. He's highlighting a key topic. We can pray he's eventually allowed to speak freely
LOL
did you watch the show/interview?
That’s why they brought him in...they’re both smarter than you
I love how Chamath is taking these mofos on CNBC to school - intellectually, morally, and ethically. Every day.
It is epic! Finally a person with balls.
Well said!!
@Crom The narrative that large corporations should be taxed their fair share is one I can get behind. I don't do 9-17 just for my corporate overlords get richer. I want the country I am in to thrive, not just a select few.
@Crom I think it's fine to get rich up to the first 100 million for example. But at some point, when the rest of the country is crashing into debt and you are massing your 900th million, it's not healthy for the economy anymore.
There should be no extra incentive to get rich, being rich is incentive enough. While there are still people who are dying because they can't afford health care and others are Jeff Bezos, there is a problem. I think it is a huge problem that Amazon paid 0% federal tax last year.
@Crom Actually we both do help the African child indirectly and I happen to pay directly as well. From our taxes a tiny part is used for development aid, and I happen to give money to UNICEF for African aid directly, so you chose your example well.
If the moral argument of helping people in need and protecting the vulnerable isn't enough for you, as it is for me, there is also a more self serving argument for an egalitarian society: A society that provides equal opportunity is more prosperous on the long run. Countries with the highest amount of social support (health care, unemployment security mechanisms, accessible infrastructure etc.) are the countries where it is the easiest to get rich. Scandinavian countries are the easiest places to get rich in the world. A wide affluent consumer base creates demand for new products and drives innovation. Also the amount of crime is considerably smaller in such places, and most obvious of course is that you are safe. If you get unemployed, you can still afford to go to the doctors. If you are employed, but have to have major surgery, you will have only a small financial set back if any at all. In the US it could endanger the welfare of your whole family, and a bazillion other things.
USA could take a lot better care of its citizens. Each year from 20 000 to 60 000 Americans die because they don't have access to health care. That's a lot more than Afghanistan and Iraq combined. I think not only morally, but economically as well we need a more egalitarian society.
Chamath is a champion of the honest Americans, calling out the lying corporate execs. Thank you.
b1sayan #GetChamathOnRogan
Please share that tag so everywhere so Chamath can get the largest platform
I like how he is so honest, and still stands for FAIR capitalism. A good capitalistic system that works. Not a rigged game capitalism. I like him. Im for a good socialist/capitalist system that is fair, honest, competiveness and brings the best most innovative things to the world. Get humanity forward. Not some few people who get rich, not creating ANY value. Capitalism should create VALUE. = Key. Which in return creates wealth for the whole nation/world.
@Daniel Johnston he has both citizenship - canadian & american .
Daniel Johnston Americans aren’t even American... they are Of Irish, Dutch, Italian, Spanish, British, Asian, Middle Eastern, Armenian, Jewish, Turkish, Greek, Palestinian, French, Indian, Korean, Polynesian, Nigerian, Morrocan, Ghanaian and every other nation and or cultural heritages 😜👍
Your nation is barely a few centuries old and built on the backs and blood of immigrants
🖖
@@djBlindFaith No matter what, proud to be an American (and yes, I wasn't born in US). I only pledge allegiance to 1 country which is USA. No dual citizenship no nothing. This is it for good or bad.
LOL CNBC cut him off when he started to tell the truth.
Of course they did. Need to edit it to fit their agenda.
Full interview: czcams.com/video/Go1I0tu01n4/video.html
Corporate executives used the good years doing stock repurchase yet balking at 15$ minimum wage?
God bless America
@@9fxhrlif9er thank you!
It's a web clip. CNBC edits it down to passed around on social media. People have short attention spans. It's harder to monetize longer videos because the share of potential viewers is less. More views means more ad revenue. Make no mistake that CNBC loves having Palihapitiya on. It drives views and ratings.
CNBC: Are you arguing for example to let airlines fail.
Chamath: Yes.
For the last 10 years airlines have been squeezing seats together where there no longer even 4 inches from the one in front (more like snug) way less on the side and NOW your seat curves forward even though you put it back, you net like an inch and a half. F em'.
Comment of the Year - “Yes”
Moderator clueless. Short-term profiteers deserve to go under.
No buyouts.
@
If the profit is small, then the owners must live in a shed??
Would that mean airlines are cheap to buy? 🤔 but i wonder how the CEO became a billionaire also. Did he invested in different companies also? Or did he start up his own business through scratch? 🤔
I'm shocked cnbc let him speak for 4 minutes uninterrupted
Mike Lolz there were stunned
Did you notice the editing? I wonder what parts they edited out?
They had no idea what was happening to even bother responding
He is now and has been right on this, corps that generate 30b in profit in 10 years can't survive a month of turndown then need taxpayers to bail them out? Enough! let them fail, surely will happen to my little business if I didn't have some savings.
Exactly, small business failing all over the country from this and millions saying they should of had more saved up? Absolute insane..
Hello everyone,
There is a bill called "Emergency Money for the People Act" proposed by Tim Ryan and Ro Khanna, please check it out and if you agree... call your representatives and tell them they should be helping us not corporations and rich people. Trillions for corporations aka corporate welfare and crumbs for us aka personal responsibility!... What a joke
If you agree call your representative!!
Agreed - and ditto for the average American - you lose your job and you cant make bank for 3-6 months . emergency fund is finance 101 and requires grade 4 math
We can't let them fail for god's sake because the last time we let that happen was Lehman Brothers and we let it fail and it triggered a global financial crisis. How long will it take people to understand that every time we let a systemically important corporation fail, we are gonna cripple the economy worse than it already is. Get it through your thick skulls, the world economy doesn't work the way you think it does, it works on practical basis not moral ones.
This is so true. It really needs to be talked about more.
Chamath is the voice everyone needs to hear.
TheM0joDoj0 #GetChamathOnRogan
Please share that tag so everywhere so Chamath can get the largest platform
For those who want to watch the whole interview. Here ya go,
Watch "(FULL) CNBC Social Capital CEO Chamath Palihapitiya's case against stock buybacks, dividends" on CZcams
czcams.com/video/VM1_Bn-1q8Q/video.html
Corporate executives used the good years doing stock repurchase yet balking at 15$ minimum wage?
God bless America
Totally agree. And Andrew Yang. Yang Speaks Podcast is very interesting. Love these two men and all the truth they speak.
Chamath deserves all the success!!
Would that mean airline companies are cheap to buy. And i wonder how he became a billionaire. Did he invested in different companies or start up his own business from scratch? 🤔🤔🤔
@@mrleafbeef634 He started off with helping start up Facebook. Ever heard of that company?
@@lookingforsomething Can u tell me more of him , he just shot out of a cannon nd everyone loves this guy all of a sudden lol
He's very successful already. He's a Facebook co-founder, the Social Capital founder, and is also a minority stakeholder of the Golden State Warriors.
@@sethparker3381 chairman of Virgin Galactic
Is it just me, or was the anchor trying to basically shun him into walking back his previous comments...
He was trying to shame him with some very weak tea. Didn't work very well.
Yeh the bcth was desperate, previous comment of his had over 10+m views and most were commenting that CNBC will never bring him on. This day CNBC thought the will have a "gotcha" on Chamath.
Typically CNBC, cuts him off before he spills the beans on CNBC's Wallstreet friends
Every time he says the words hedge fund the anchor gets triggered, quite hilarious and corrupt.
here is the full interview in case you are interested... czcams.com/video/Go1I0tu01n4/video.html
haha lol your right
Not friends, advertisements. CNBC is in the business of selling to investors/pension funds
@@Paul_Danek real mvp
Man's got a point. Last time I checked, American Airlines has a 5.0x leverage, of which a substantial amount of cash is dedicated to dividends
Terry Zhao Berkshire Hathaway has almost 10% share in AA, should more tax payer dollars be ferried to that company?
Why they cut him out.... Let me go overboard and enlighten the world.. Truth needs to come out.
here is the full interview in case you are interested... czcams.com/video/Go1I0tu01n4/video.html
@@Paul_Danek Thanks!
axlaxl7 thanks
Wanted t hear the end of that...
czcams.com/video/qj2Up8HXPGU/video.html
THERE THATS ENOUGH!!!
Adel Noppert thank you!
Look for the latest CNBC Videos: www.cnbc.com/video/
Whole interview is more than 37 minutes.
@@janbrys367 even on CNBC the video is same as above 7 mins. cant find full 37 min video. Any direct link?
They tried to paint Chamath in bad colors with his quote *"Airlines should be allowed to fail"* and it backfired completely.
And now they try it again, completely tone deaf of entire situation and how capitalism should work.
I love how CNBC brought him back literally to play gotcha off the first question. Speak on it Chamath! Great to have a voice speaking within the tower.
Yeah, and I can just imagine what he could also say: that if he takes speculation with his company and he gets it wrong, I’m sure he thinks he deserves to take a loss too.
He speaks such obvious truth, I don’t see why he’s allowed on television.
They brought him back for audience
This guy came from the bottom, love hearing his voice!
Started at the bottom now we here!
@Mike Lee you spelled *refugees wrong buddy
Corporate executives used the good years doing stock repurchase yet balking at 15$ minimum wage?
God bless America
This guy surely knows what he is talking unlike pretty much everyone in America right now. Great job
Hey
It's because 1) his brain is one in a million and 2) he puts his conscience over greed/politics.
He and Mohamed El-Erian are lighthouses in a sea of spin and bullsh!t.
@@willzsportscards #2 is why #1 - totally agree Chamath is a rarity, well worth listening to
@David Sanchez First he's not Indian, second good going man. That's some godly argumentation. You are a real king of debaters.
He need to be on cnbc everyday instead of whiny bail me out capitalists and Wall Street Liars.......
CNBC hosts' heads would explode
@@grobble8954 No doubt!! Nothing against shareholders but most Americans don't have shares to hold....#AmericaFirst not #GlobalCapital
Bailouts are not capitalist.
#GetChamathOnRogan
Please share that tag everywhere so Chamath can get the largest platform
Chamath reveals them to be frauds.
"We went viral" uhhh no, Chamath went viral for saying something real.
Also hilarious edit that CNBC took away the reaction shots from their anchor which made it clear what a moron he was. Also this anchor had a week to prepare, with a team behind him and he still comes off a fool in round 2.
CNBC 0 for 2
HEY SCOTT! In case you didn't realize it, you've just been schooled son.
The host doesn't get what he's saying. These supposed brilliant investors should not be bailed out when their "bets" blow up. We saw the same thing in 2008 when supposed savvy investors, hedge funds banks, etc...invested in mortgage back securities and had no idea what they were doing or some knew and were playing the game make some money and run before the House of Cards falls.
This guy speaks you lean in
I gotta give it to CNBC. They let him talk more than usual. Usually he gets interrupted a lot.
The CNBC interviewer just wanted to get to the bottom of the issue, so they were in listening mode. They both are fighting the same issues at the end and worked together
Id like to hear Chamath and Andrew Yang bounce their ideas off each other in a sit down conversation
Chamath was too pro UBI. I believe that a UBI would.not work (and.I always forget why), and.for him to say that businesses should not.be supported, but.people only.is just going to lead to a society with money and nowhere to spend it without companies around. That won't work.
Finally someone who makes sense and he get’s scrutinized for it.
Always confusion and.resistance.so no one.can do.the right.thing. Is this really what America came.to in 2020? Never quit - fight back complacency
He gave me big “I SAID WHAT I SAID” energy here. Good for him.
Everything this guy says I’m like “THANK YOU”. I feel like Will Ferrell in Zoolander, “WHAT AM I TAKING CRAZY PILLS HERE?!”
Why cut off the video at a very intersting part of this interview...?
For those who want to watch the whole interview. Here ya go,
Watch "(FULL) CNBC Social Capital CEO Chamath Palihapitiya's case against stock buybacks, dividends" on CZcams
czcams.com/video/VM1_Bn-1q8Q/video.html
Chamath is the TRUTH
Can you see the smirk on Chamath's face after they replay it, OMG AHAHAHAHAHAHAH I fricken died.
Go Chamath, please run for president!
sorry man, he can't, he was born in sri lanka
Huan Yang let’s make the exception for Chamath
Huan Yang so? Ted cruz was born in Canada and Obama in Kenya
Huan Yang it figures, this man speaks like a razor, the Judge got owned!
Eric p Obama was born on Oahu. What are you talking about?
Chamath spewing up more wisdom! Damn! I think the host's brains were lit on fire due to all the short circuiting.
this guy hates IBM lol - they cut him off when he started to hit the bone :)
"YES" - XDDDDDDD I spat out my chicken soup when he just ruthlessly dropped the mic like that
Watched it live, Chamath really makes great points.
Scott loves to get humiliated live on air
Full interview please
For those who want to watch the whole interview. Here ya go,
Watch "(FULL) CNBC Social Capital CEO Chamath Palihapitiya's case against stock buybacks, dividends" on CZcams
czcams.com/video/VM1_Bn-1q8Q/video.html
Ozzie Del Real thanks
A guy with a brain speaking to a shill who has no idea what the function of a company.
Release full interview plz
Someone else would have dodged that question.
Chamath : yes!
This interviewer is A freak for pain!! SMACKED DOWN AGAIN!! JESUS
He wants to lech off Chamath's popularity, but doesn't want Chamath to offend CNBC's 1% owners and investors.
@0:26
Interviewer: Are you saying that airlines should be allowed to fail?
Chamath: YES
LOL
Another 10M views on this one 🚀📈
The few companies that have healthy balance sheets are the ONLY companies that should move forward with stock buybacks long-term. Apple 🍎 comes to mind💡 Plenty of CASH on the books 💰 5G Upgrade Cycle is coming!
But they are keeping their cash off shore so one of the biggest markets the United States and their citizens can't properly tax them. And I'm not mad at Apple policy should dictate that they pay more in taxes
Everybody in this thread has made good points!
But only at a compelling price
Marcus What do you expect when the US has such uncompetitive tax standards? If we want companies to keep their cash in the States, then we need to get rid of all the taxes and regulations that have incentivized these companies to move it abroad in the first place. Can’t expect companies to willingly work against their own interests, nor should they.
I use to look down on this guy when he first started out. Now I not only look up to him but also take seriously his opinions and perspectives because he tells it as and tells hardcore truth.
People like Chamath are who we should be listening to, not the corporate media or the government.
unvrknow22 #GetChamathOnRogan
Please share that tag everywhere so Chamath can get the largest platform
Where can I watch the rest of this interview????
Basically, he explained how rich gets richer and poor gets poor holding bags. All those money printing by fed and bailout goes to CEO's , executives and hedge funds. Respect to this guy for being so candid.
i was preparing my Tea for this interview
Always great to listen to a credible person eloquently exposing the truth. Smart and humble!
He’s absolutely correct quit bailing out these huge companies!!!!!!!!!!
video goes viral because interviewer can't comprehend when faced with a description of basic capitalism where you don't win when you lose... Comes back for round two and thinks he's going to make Chamath look foolish with a flaccid whataboutism? big fail.
to summarize:
Scott - "Ok, Chamath, well smartypants, isn't it hypocritical to have a business and invest when you think other people do bad business?"
Chamath - "I do good business, Scott."
Very Interesting. Good Interview !
We live in a capitalist society, if my business fails, the government is not going to fail me out! Why should these people be bailed out?
Because your tax contributions are small and in a capitalist system highest earners are treated like royalty.. its disgusting but government does not care about little people even though they make up 90% of the populous
Where can I watch this full interview?
that cut off tho, lol wheres the full video
I wish this guy had taught all my business classes in college.
Holy spit, my admiration for Chamath increases EVERY time I hear him!
Upload the whole thing please
anyone know whats the ipo he's talking about near the beginning?
I started to laugh as soon as the interviewer said “...I do want to revisit the comment you made with me a couple of weeks ago...” and Chamath just grins. What a boss. Love this man.
Clamath and Dalio for President and Vice President!!!
Laurie Gaudette Dalio?! He’s so unlikeable
Where is the full interview???
yo does anyone have the unedited full clip?
Palihapitiya has some very powerful arguments and these should be a part of any Business Management textbook.
They didn't cut Chamath off, they cut their host off from responding with the same corporate-y nonsense that just got exposed, lol.
Why don't you guys upload the full interview?
This is the guy who was like..."I want to be at the table, with all the people ruling to world!!!" "I want that money!!!"
When has business ever been fair???
Business is a ruthless war of attrition, if you are highly leveraged when an unprecedented crisis occurs you will be wiped out.
Chamath just made this guy's career with that clip. Although, Chamath did make him look a little foolish. But hey, bad press is better than no press, right?
Can someone link the full interview please. I want to hear more of what he has to say. 😊
For those who want to watch the whole interview. Here ya go,
Watch "(FULL) CNBC Social Capital CEO Chamath Palihapitiya's case against stock buybacks, dividends" on CZcams
czcams.com/video/VM1_Bn-1q8Q/video.html
Chamath!!! What a hero man, tell these fools WHAT IT IS!!! Literally thr only guy left in finance who will CUT THRU THE BS!!! PREACHHH
1:35 The second "Who Cares"
I FELT that
They cut the interview off at the end. You can watch the remaining 2-3minutes here:
czcams.com/video/yU3lxyZoQwc/video.html&t=400
Why did this interview suddenly end??
Can we update the outdated constitution and make this man the President? He's a problem solver at the fundamental level!
FragBoy Stewie #GetChamathOnRogan
Please share that tag everywhere so Chamath can get the largest platform
He’s a no spin straight talker. Please bring him on more often.
Expect the opposite 😂
Where's the rest of the interview?
Anyone have the full interview?
Lol..... As soon as he said the scary phrase "managerial class" he immediatley struck a nerve to get cut off.
This guy was amazing. Nice to see a few people who understand free market capitalism on CNBC
link to full video?
Where's the rest of interview?
bobble head scott getting wrecked again by Chamath
This guy gets it. Chamath Palihapitiya for President.
The more you play those short videos, that’s wonderful of you, the more I love Chamath !
CNBC keeps bringing Chamath to get the ratings. He is fun to listen to.
Crushed it again. It is painful to watch at this point.
Chamath, what an amazing guy !!
why didnt you post the original video?
Chamath needs to start trying to influence his billionaire friends, It's rare that someone from the billionaire class has this amount of common sense and straightforwardness about economic issues. Chamath is someone who values rationality over corruption and it makes me very proud.
Please give this guy every spot that Jim Cramer is currently in. Thanks
Preach! Scott man, just because you don't agree with him, doesn't make him wrong.
Finally someone on CNBC talking some sense and calling out on such behaviour. Frustrating to hear companies claiming to drive value through stock buybacks. It doesn't, period. It basically just decrease the no. of outstanding shares which prop up stock prices while no value has been added or anything fundamentally changed.
Ever since 2008, I've been wondering "where's the outrage?" I hope everybody gets this guys message.
Ha, I thought the cnbc guy was going to walk it back, he doubled down. LOL What a bad look.
Poor Scott, so "clueless"...lol
I need the full interview
I love how the host set this up as a gotcha question, disingenuously, I might add. But then gets completely ripped apart. You love to see it.