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dunkmaster

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  • Understanding Compounding: Berkshire's Not-So-Hidden Dividend Contrarian Secret [View article]
    I meant his point is no fun (and absolutely right).

    My meaning is that I like, feel empowered, and comforted by controlling my own investments EVEN THOUGH I could probably come out the same or even ahead if I just bought index funds and ignored them till I retired. I think everyone interested in investing probably feels that way at some point (depending on weather his style of investing is a success at this point or not). It is worth noting that Buffet looked like an old fool before the dotcom bust....and then a god after....today's news decides if yesterday's decision was right or not.

    I compare my experience investing with my experience flying a small airplane. I got into because I thougth I would get somewhere faster. But after you invest all the time and energy doing what you need to do you find out that, infact, you don't get there any faster...but you have a hell of a lot of fun if you like doing it...which justifies the time, expense, and lessons learned.
    May 19, 2011. 08:02 AM | 4 Likes Like |Link to Comment
  • Understanding Compounding: Berkshire's Not-So-Hidden Dividend Contrarian Secret [View article]
    the author implies (and I am assuming you but correct me if I am wrong) that the wisdom of the running of BRK (taking all profits and creating organic growth ... etc) can be extended to ALL companies and ALL situations.

    It can't.
    May 17, 2011. 01:57 PM | 7 Likes Like |Link to Comment
  • Understanding Compounding: Berkshire's Not-So-Hidden Dividend Contrarian Secret [View article]
    You are absolutely right...and no fun at all.
    May 17, 2011. 01:18 PM | 3 Likes Like |Link to Comment
  • Understanding Compounding: Berkshire's Not-So-Hidden Dividend Contrarian Secret [View article]
    Wow!!! There is so much STATIC here...the bottom line (that can easily be insulted by positions of arrogance based on a little knowledge and even less perspective) is this...

    If you are running (owning) a small to medium sized company whose market penetration and/or share is far from saturation and is growing more rapidly than most companies then pumping money back into “growing the company” makes ABSOLUTE sense. Don’t take coal off the fire when the train is building speed.

    If you are running a large to huge company that is less likely to double in size in the next 5 (or even 10) years then you have to look at the logic of trying to poor huge amounts of fertilizer (even if the tax on fertilizer is cheap) on a huge healthy oak tree. Maybe collecting the acorns for winter makes more sense.

    Are tax considerations worth considering? Of course, but if all you (as an investor or company) do with your time, energy, and capital is figure out ways to avoid every possible tax you will probably never make any money to pay tax on.

    It is narrow (and ironically simple) minded to assume that any one form of managing profits makes sense for ALL situations or ALL companies OR, for that matter, for all investors.

    If all you can see is one point of view that seems to imply an advantage for every situation (and this probably applies to everything in the world) you probably are not seeing as much as you think.
    May 17, 2011. 10:45 AM | 5 Likes Like |Link to Comment
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