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I would love to see a long term comparison between Berkshires performance and a "Buy and hold the Nasdaq and reinvest the dividends" strategy. Without dividend
by ArtTimeInvestor 6y ago
I would love to see a long term comparison between Berkshires performance and a "Buy and hold the Nasdaq and reinvest the dividends" strategy.
Without dividends, the Nasdaq 100 had an annualized ROI of 13.85% since 2021-03-31 which is the first date Google shows in the Nasdaq chart.
Any ideas how to get data on Nasdaq with reinvested dividends?
- mdorazio 6y agoIt's going to depend on your tax rate and the expense ratio of whatever Nasdaq ETF you choose unless you're planning to self-manage 100+ company investments. Dividends get taxed (usually) as income, so you'd have to deduct that from the average dividend yield. QQQ, for example, has a 0.2% expense ratio and around 0.55% yield. If you assume 30% tax rate on the dividends, the after-tax, after-expense yield is under 0.2%, or basically negligible even with compounding. If you want to compare dividend reinvestment, you should stick to non-tech indexes.
- bulletsvshumans 6y agoIn the U.S., dividends are taxed at the capital gains rate if you’ve held the stock for a year or more. They are taxed as income only if youv’ve held the stock for less than a year.
- jedberg 6y agoAnecdotally I can tell you that lately the buy Nasdaq was a much better option. I bought VTI and BRK.B at roughly the same time, and VTI has doubled and BRK.B has had a modest return.
- tertius 6y agoWho cares about short term fluctuations?