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But if they aren't predicting profits any time soon you won't be getting dividends. And you'll only have weak voting rights with which to nudge corporate strat
by dingaling 8y ago
But if they aren't predicting profits any time soon you won't be getting dividends. And you'll only have weak voting rights with which to nudge corporate strategy.
So, why invest at all?
- somebodythere 8y agoBecause you expect the share price to grow to reflect the increased likelihood of being paid dividends in the future.
- est31 8y agoEven as a minority shareholder you can sue a company if it acts in bad faith in a way that is bad for the shareholders.
- ericd 8y agoWhy do people pay so much for Berkshire Hathaway shares, despite their declared intention not to pay dividends? I trust that they still want to increase their enterprise value.
- lotsofpulp 8y agoExpected present value of future dividends of alternative entity expected to pay dividends and capital gains from said entity is less than expected future value of capital gains from a company that isn’t paying dividends, all adjusted for certain level of perceived risk of course.