Quoting in part from Mr. Fink's letter:
As I am sure you recognize, the effects of the short-termist phenomenon are troubling both to those seeking to save for long-term goals such as retirement and for our broader economy. In the face of these pressures, more and more corporate leaders have responded with actions that can deliver immediate returns to shareholders, such as buybacks or dividend increases, while underinvesting in innovation, skilled workforces or essential capital expenditures necessary to sustain long-term growth.
In 2014, dividends and buybacks in the U.S. alone totaled more than $900 billion, according to Standard & Poor’s — the highest level on record. With interest rates approaching zero, returning excessive amounts of capital to investors — who will enjoy comparatively meager benefits from it in this environment — sends a discouraging message about a company’s ability to use its resources wisely and develop a coherent plan to create value over the long term.
100% right.