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dc984

dc984
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  • Probabilistic Value And Momentum Factor Rotation [View article]
    Brett, thanks for the article, what do you think about the momentum ETFS currently available? Seems that you could get away with alot less work that way.
    May 17, 2014. 01:03 AM | Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    Buffett disagrees...he has sold 4.25% of his shares over the past 7 years but he's not in serious trouble at all...

    "Let me end this math exercise – and I can hear you cheering as I put away the dentist drill – by using my own case to illustrate how a shareholder’s regular disposals of shares can be accompanied by an increased investment in his or her business. For the last seven years, I have annually given away about 41⁄4% of my Berkshire shares. Through this process, my original position of 712,497,000 B-equivalent shares (split-adjusted) has decreased to 528,525,623 shares. Clearly my ownership percentage of the company has significantly decreased.

    Yet my investment in the business has actually increased: The book value of my current interest in Berkshire considerably exceeds the book value attributable to my holdings of seven years ago. (The actual figures are $28.2 billion for 2005 and $40.2 billion for 2012.) In other words, I now have far more money working for me at Berkshire even though my ownership of the company has materially decreased. It’s also true that my share of both Berkshire’s intrinsic business value and the company’s normal earning power is far greater than it was in 2005. Over time, I expect this accretion of value to continue – albeit in a decidedly irregular fashion – even as I now annually give away more than 41⁄2% of my shares (the increase having occurred because I’ve recently doubled my lifetime pledges to certain foundations)."
    May 16, 2014. 12:43 PM | 3 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    Buffett disagrees:

    http://read.bi/14rkouL

    Also, no one is stating that non-dividend stocks perform better than dividend stocks. Where did you get that idea from?
    May 16, 2014. 01:53 AM | 2 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    In before:

    a) You're selling the goose that lays the golden eggs
    b) You're butchering the cow that gives you milk
    c) You're giving up the house that pays you rent

    You will eventually end up with nothing. I am sorry.
    May 14, 2014. 09:57 PM | 2 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    Dave,

    Thanks for your detailed reply. Clearly I don't think the same way as you do ("why is that so hard to understand" can go both ways), but I'm going to try and learn, perhaps seek out points of agreement, to clear up misconceptions or miscommunications.

    I agree totally that earnings drive share value. Now, the point im trying to make is that if you had reinvested the earnings into your business at an acceptable rate of return, your FUTURE earnings would be higher, hence the FUTURE value of your business would be higher too. I'm not making any assumptions here, as everything ive stated you have also agreed with. And this is not theoretical, its practical, if one were to be a business owner like yourself.
    May 14, 2014. 07:56 PM | 1 Like Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    I'm trying to understand how he thinks mr fish, and how he values companies. Lets keep things simple.
    May 14, 2014. 09:53 AM | 1 Like Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    A follow-up scenario Mr Crosetti. You say you have owned or helped run a number of business for many years. Do you value your businesses the same way that you value stocks?

    If instead of spending the profits of your businesses / donating to charity (as you indicated above), you 100% reinvested the profits into the business, year after year. After all these years, do you think the "value" of your business would have been different?
    May 14, 2014. 09:21 AM | Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    David C,

    Obviously we don't agree on very basic ideas. So, I'm going to be patient and try to understand how you think and process facts.

    I can't give you a precise number, because I don't know the exact figure. What do you think? Do you think it would have been higher, or lower, if KO didn't pay a dividend?

    You say:
    "There is no relationship between the price of a stock and the value of a company. "

    At the same time, you say that earnings drive stock prices. Is earnings how you value a company, or not?
    May 14, 2014. 09:18 AM | 2 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    Tell me, how much more would my KO stock be worth if it never paid a dividend? Can you give me a number?
    ======================...

    Let me give this a try. It would most likely have been higher, unless management squanders it COMPLETELY. For mature companies like KO though, the money is better off in the hands of shareholders (as dividends), as the return on capital is lower. Just because I can't give you a specific number does not mean that it couldn't have been higher, can we agree on that at least? You may not care about the share price, but others (who might sell shares for income) do...which is something that this article attempts to discuss.

    ======================...
    Once you've done that, tell me again how DGI is a joke.
    ======================...

    Who has called DGI a joke?
    May 14, 2014. 01:42 AM | 2 Likes Like |Link to Comment
  • Is The Stock Market 'Overgrazed'? [View article]
    Begging the question...
    May 14, 2014. 01:07 AM | Likes Like |Link to Comment
  • How To Beat The Low Yield Cycle [View article]
    Thanks bjb for your expert opinion!

    Hope you could enlighten me on another question:

    Usually when one sells covered calls the strike price is usually above the current price, whereas with the naked puts the strike price is usually below the current price. That would make them functionally different then, right?
    May 13, 2014. 02:52 PM | Likes Like |Link to Comment
  • How To Beat The Low Yield Cycle [View article]
    Thanks bjb...! I understand now. Why is it that people generally say that shorting naked puts is VERY RISKY whereas selling covered calls is SAFE?
    May 13, 2014. 02:17 PM | Likes Like |Link to Comment
  • How To Beat The Low Yield Cycle [View article]
    Is it? I thought if you were shorted naked puts you would lose big if the market tanks...whereas with covered calls you get to keep the premium.
    May 13, 2014. 01:10 PM | Likes Like |Link to Comment
  • Is The Stock Market 'Overgrazed'? [View article]
    Thank you for your expert opinion, I understand now.
    May 13, 2014. 08:43 AM | Likes Like |Link to Comment
  • Is The Stock Market 'Overgrazed'? [View article]
    I don't think that's possible because more risky assets should have a higher expected future return? Unless all assets converge to become equally risky/volatile...is that possible? Hope someone can enlighten me.
    May 13, 2014. 08:29 AM | 1 Like Like |Link to Comment
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637 Comments
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