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> I do not want dividends if I think the business can invest the money with a higher probability of better ROI than I can. A better ROI to whom—itself, or to y
by mcphage 5y ago
> I do not want dividends if I think the business can invest the money with a higher probability of better ROI than I can.
A better ROI to whom—itself, or to you? Do you own Netflix stock to make money for yourself, or for Netflix to make money for itself?
- lotsofpulp 5y agoTo me, of course. But Netflix earning more money for itself is the same as Netflix stock price increasing is the same as the Netflix’s owner’s ROI.
- mcphage 5y agoClearly not the same, since a dividend would increase your ROI, but is not Netflix earning more money for itself.
- lotsofpulp 5y agoFor a liquid asset, ROI should be the same (excluding taxes) either with or without dividend: https://www.investopedia.com/articles/stocks/07/ex_dividend.asp https://www.investopedia.com/articles/stocks/07/ex_dividend.... With a dividend, you have to pay taxes now. Without the dividend, the stock price remains higher so you sit on higher unrealized gains. But assuming you can sell it anytime (it is liquid), the ROI is still there without the dividend.