Sunday, 10 November 2013

Warren Buffet himself never like to give away dividends as income. Can you agree?



Just For Thinking ...



Buffett's advice is this. If you want income from Berkshire, simply sell a small portion of your stock holdings every year. By doing so, you can put cash in your account when you need it.


How many of us will agree or accept his advice?

Most like to have the cake and eat it too. That is why income dividend is still so popular among many retail investors as cash flow strategy even though there is no immediate need for cash.


Who is deemed to be better in capital allocation of excess cash flow from business profits?


You or your trusted Management and BOD of your invested companies?

Think retained earning and dividend payout ratio!

Think longer term e.g 1X or XX years

Find you own answer.









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5 comments:

  1. CreateWealth888810 November 2013 at 10:01:00 GMT+8

    Like it or not.

    Long-term Investing is definitely biased to Large Account Size.

    So younger investors are better off in working hard at their jobs to increase earning and saving more from their increasing earned income to accumulate larger account size.

    That should be their Game Plan

    ReplyDelete
    Replies
    1. Singapore Man of Leisure11 November 2013 at 10:34:00 GMT+8

      CW,

      You had it good with your post ending "Find your own answer".

      And you have to mess it up with your wah kali kong "That should be their Game Plan"...

      Have you noticed you are sounding a lot like your parents when you were in your teens?

      Don't hit the face!

      LOL!

      Delete
    2. Money Honey13 November 2013 at 00:00:00 GMT+8

      Fast forward into the future ..... CW children also invested into stocks so, who should they "listen", Warren Buffet or their papa (CW)? wah kali kong has its many merits too l say.

      Delete
    3. CreateWealth888813 November 2013 at 07:21:00 GMT+8

      My wife: "Wah kali kong no stock gambling" after watching her father and brothers losing their backside in AFC and CLOB Saga

      Delete
  2. Anonymous11 November 2013 at 16:33:00 GMT+8

    It's definitely true what CW believes and says. My experience tells me so. Remember at the age of 40 then i started to invest. As you work and save, the older you get the more saving you should have. And when you invest, God bless you or Lady Luck on your side even if you can do all the homework as much as you want. At least, you should or can always preserve your capital if you don't make any money. That's for suvival in the market.

    ReplyDelete