Comments by "Jim my" (@chowsquid) on "Dividends Are Irrelevant (Sort Of...)" video.

  1. Yup. Even buffet says you are buying the future stream of div income….but that future could be 10 or 25yrs out. The reinvestment and buybacks just makes your div share in the future bigger.
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  2. But in that scenario, the bad decision already tanked the stock price, so your investment lost a lot of value even tho your div current isn’t affected….yet.
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  3. You can do the same by selling shares
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  4. Yup…you leveled up as an investor. And you can level up some more with tax loss harvesting. And carryover. Which with div, you can’t. Div is fine in a locked up account like IRA or 401K or HSA.
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  5. 4:45 this pocket-izing / recharacterizing profit or money makes as much sense as envelope stuffing or Christmas club savings account. It can make sense to some people even though it can be irrelevant
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  6. With div, you maintain position of a smaller less valuable company. With no div and cash out, you own less of a now larger more valuable company.
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  7. You own the same % of a now smaller company
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  8. The value of the company continues to grow. So you will sell less and less of your shares for the same amount of cash.
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  9. Good to know google can translate from Canadian to English 👍🏻
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  10. 3:02 you keep advertising your plain bagel shoppe has $1,000,000, you gonna get robbed
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  11. It essentially says to you, we’ve got nothin’. You do it. Essentially like a bond. Or royalty payments.
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  12. Now that you bring up 0%. Relatively, div stocks got a boost because of situation you mentioned during 0% years. But now that interest rates are 5%, some of those same fans of div stocks can now buy CDs or savings accounts or bonds instead. This can put pressure on div stocks as it’s no longer the only game in town for yields. So your div may stay the same, but the div stock price could tick down as rates rise.
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  13. You are thinking yield vs the actual dividend. Yield is based on the stock price….like if you bought it right then
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  14. If the stock bounces back, you look like a genius. If the stock continues to tank, you look like a criminal.😂
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  15. Why are you buying the stock of a company’s mgmt you don’t trust? That is like the most important factor when buffet buys a company. You’re buying the mgmt as much as the company.
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  16. As much “growth” as my reinvested savings account or CD.
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  17. The company behind that stock hopefully has something of value that can generate value at a rate satisfactory to the investors. That’s why the stock is the price it is. The price of plain bagel shoppe stock is that price because it can reliably sell X many bagels for Y profit with Z amount of potential growth. If you think those XYZ is not attainable or maintainable, you would price the stock lower.
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  18. Is share count matters to you, sure
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  19. That 0% div and holding thru hard times with nothing in the meantime is basically all small growth companies. So requiring divs basically locks yourself out of most AAPL, Goog, Netflix, Amazon when they where young. Goog and nflx still don’t pay a div.
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  20. You get a div of $500…..the equivalent is sell $500 of stock….not sell 5 shares or 50 shares. If your div is 5%….you’re just selling 5% of the total value of your stock, not 5% of your shares ( unless your total value is $100)
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  21. If you can’t sell fractional or you have very small number of shares, then this will be harder to manage. But Richard’s audience is multi millionaires so, not relevant 😂
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  22. That’s how I bonds work
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  23. A company can be sold before it ever pays a dividend. And the share of profit from the sale is the shareholder’s.
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  24. Question is why are people investing in badly run companies regardless of divs
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  25. Wait for that Carl Icahn mention😂
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  26. Thus you also won’t have rocketing companies because mgmt is forced to be conservative. Perhaps too conservative. Against highly flexible competitors that has boat loads of cash and doesn’t need to borrow during high interest times or pandemic shutdowns Why bind yourself for no reason? Unless you don’t trust the mgmt…..which then why are you investing with that company in the first place?
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  27. He likes owning div stocks but his Berkshire didn’t pay a div for a very long time. That’s how you get to $500,000 a share of brk.
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  28. Not sure goog is a good example here…..Internet balloons, googles no one bought….lots of secret moon shot project by the founders spending any amount of cash they want. No one’s gonna say no to Sergey or Larry.
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  29. Sell some shares
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  30. It’s mostly how buffet explains it.
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  31. In that case, might as well buy an annuity
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