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Conversely, if you get dividends but do want to keep the money in the market, then you pay for the cost of a trade (or trades, for a portfolio) to buy more shar
by tacostakohashi 10y ago
Conversely, if you get dividends but do want to keep the money in the market, then you pay for the cost of a trade (or trades, for a portfolio) to buy more shares.
Frankly, I think the Berkshire approach, or at least companies that offer a dividend reinvestment plan, makes a lot of sense. For the average investment, dividends are fiddly, modest amounts of income that you just need to do tax paperwork for and then deal with reinvesting. Much more convenient to do nothing during the accunulation phase of your wealth building, then sell shares when you want the money back.