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“I think the day Berkshire declares a dividend is a day when the stock goes down,” he says. “As it should.” -Warren Buffett http://dealbook.nytimes.com/2011/0

• thematt 15y ago
  Interesting choice of words on his part. The stock goes down for every company. Anytime a dividend is declared the stock price is adjusted down by that same amount.
  • stevenj 15y ago
    That's true. Though he also said this (it was paraphrased by a reporter, so it's not a direct quote): Shareholders benefit more from leaving their money with him and reaping a handsome return than by getting a regular payout and depleting the Berkshire war chest. *Same source as above
    • chrisbolt 15y ago
      Interesting. If a company pays dividends, does that mean it doesn't have confidence that it can make as much money as its investors could make by investing their money elsewhere?
      • count 15y ago
        Isn't that sort of the definition of a dividend?