Any business that does not pay a dividend does not care about its shareholders
>>61249792buybacks as used today are far more tax efficient than dividends to small and large holder alike btwbuffett is a fossil out of touch with the new clown world we live in
>>61249792He’s 95 holy shit
>>61249961People have been saying that he's out of touch and doesn't know anything for the majority of his career
>>61250085Peter Lynch is getting up there too I think
>>61249792No, it's quite the opposite. The stock market serves to put our surplus capital, which we have no better idea what to do with, into productive use. Dividends are already built into the price anyway. If you understand this, you'll see how absurd it is - I didn't invest my capital with you so you'd give me a portion of it back every year. If I wanted some of my capital back, I'd simply take it out. That's why I give you my capital - to invest it. Build factories, create new products, expand operations, devour the competition - and I will profit from the rising stock price. If you're giving me some of the money back, then you, just like me, clearly have no better idea what to do with it.
>>61250095he is objectively on this for the reason i stated
>>61250187You're ignoring that buybacks don't incentivize holds
>>61249961never got buying back your own stock thats just burning money, now buying your COMPETITORS stock, that i could see as being useful buybacks.
>>61250226Buybacks are just tax efficent and i’m tired of div investors not recognizing this shit. Company gets taxed twice on dividends, but they’re so afraid to sell it baffling.
>>61250260It sends a message that management doesn’t believe in the stock, unless.l it M&A.
>>61249792Nah bullshit .. depends on objectives . Many awesome companies do buybacks which are superior to dividends as tax is avoided. Dividends are only beneficial if you need the income
>>61250281true
>>61250226it absolutely does, stock buybacks is the same as burning tokens in crypto it pumps all remaining stocksjust look at the market performance of the biggest dividend vs buyback stocks, its the most efficient mechanism to transfer wealth into the holders hands>>61250260if you pay dividends thats taxed on the holders side, buybacks arent taxednow plot forward the difference between holding something that gets the 20% circumcision every year vs the one that doesnt and do this over 10 20 years and see how much that 20% snowballs
>>61250306>if you need the incomeonce you pass a certain threshold you borrow against your stock holding to completely bypass taxes
>>61250170This. I pay you to invest. If you give it back to me, I pay Trump taxes (yuropean here) and then I have to pay for more fees in order to reinvest it.To me, a company that pays dividends has run out of ideas. And I want companies with ideas.
>>61249792Any business that does pay a dividend does not care about its bagholders
>>61249792I wonder if the article even represents Buffett’s statement accurately. Isn’t it more that he looks for the underlying factors that result in rising dividends (if a company pays them at all), rather than focusing on dividends themselves? In other words, the article might be reversing cause and effect.
>>61251392yeahhes not just a dividend maxerthats stupid
>>61250271Buybacks don’t derisk your investment while creating a flow of cash
>>61249792Any company that doesn't do dividend or buy backs does not have their leaderships financial interest aligned with the company...and often they will abuse their position in company to enrich themselves at the expense of the company. Musk is a neat example, trillion dollar pay package to stay onboard of Tesla? He is an employee demanding a higher salary.Before that he did shady things like siphoning Chips from Tesla over to X.Sam Altman also has a company, whose largest customer is .. you guessed it, OpenAI.Even if it is not direct, indirect profetering will still exist, Huang Jensen opening a lemonade stance selling $10.000 lemonade he squeze himself? that has nothing to do with Nvidia.. But the lemonade business is actually just a meet a great with the CEO of Nvidia.
>>61250170Did you miss the part where Buffett is getting most of his initial investment back every year without selling anything? Think of him as a stonk landlord, if that helps.
