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If you give me the option to more than double my money now versus get dividends over the next few years, I'm taking the money now. The goal of most businesses i
by clintonb 3y ago
If you give me the option to more than double my money now versus get dividends over the next few years, I'm taking the money now. The goal of most businesses is to make money. Building with a focus on longevity is just one of many ways to achieve that goal.
- kelnos 3y agoThat sounds a little like the delayed-gratification experiments where they tell children they can have a single candy bar now, but if they wait a half hour, they can have two. In general I would take the dividend, if the expected value over that time was greater than the immediate lump sum, plus what I might get for investing that lump sum in something over those few years. And in reality it's usually not over just a few years; the dividend is long-term. I'd much rather build something valuable and get steady income from it than build something to flip. Now if the risk of no dividend payout is high enough, I'll take that lump sum. But I feel like those sorts of deals -- huge money now, or very risky, uncertain money over a number of years -- just aren't really a thing that often.