The Meb Faber Show · Friday, October 2, 2026
Meb Faber notes that the SEC's Rule 10B-18, introduced in 1982, provided a safer harbor for companies repurchasing their own shares. This rule contributed to a significant increase in share buybacks, which now equal or surpass dividends as a method of returning capital to shareholders.
“Something that accelerated this was the SEC's rule 10B-18 in 1982, which gave firms a safer harbor from manipulation charges when repurchasing their own shares.”
“Once share repurchases or buybacks got easier, they climbed from almost nothing to equaling or surpassing dividends by the late 1990s.”