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What about stocks with no dividends (which constitutes the vast majority)? By your definition, only dividend investing and rental property investing is true inv
by AznHisoka 9y ago
What about stocks with no dividends (which constitutes the vast majority)? By your definition, only dividend investing and rental property investing is true investing.
I'm not disagreeing with you. In fact I almost agree with you, but your argument fails for most stocks.
- ckinnan 9y agoThe vast majority of mainstream stocks PAY dividends-- in fact about 420 of the S&P 500.
- deleted 9y ago[deleted]
- umanwizard 9y agoStocks with no dividends have some probability of paying a dividend (or doing a buyback) in the future. If you could prove that a company will never pay a dividend or do a buyback then its value would be zero.
- tonyztan 9y agoWhat about Berkshire Hathaway? They said they wouldn't pay dividends.
- umanwizard 9y agoYou don’t know they never will forever. Buffet will die someday and his successor might decide to pay a dividend.
- AznHisoka 9y agothis is turning to a very insane argument.. So if Buffet signs a iron clad legal contract that says no dividends ever for the duration of his company, it means the stock is worth 0?
- umanwizard 9y agoIf such a thing were possible, then yes, it would.
- brokensegue 9y agostocks without them re-invest the profits and that re-investing increases the share price.
- bertjk 9y agoIf the dividend-less companies are profitable, then you can still expect the increased value to get returned to you through stock buybacks, or an eventual dividend or acquisition of the company in the future.