Companies that can productively reinvest capital at attractive rates of return get a strong valuation premium in the market. Every company would love to be in this position. Companies that can make a compelling case to shareholders for long-term investments get to make long-term investments and like Amazon often get super valuation premiums.

If a company can't reinvest capital at attractive rates then returning it to shareholders is the best option. Forcing companies to invest in unattractive investments is the path to a zombie economy. I can't count the number of companies that should have returned money rather than going on some unprofitable growth binge.