You totally distort what Buffett has said and done through years.
Buffett did not buy KO, AXP, WFC, WTM, BNI, KFT, WPO for dividends. The fact that they pay dividends is irrelevant to him. BTW, you know as well as I do that he accounts for them using look-through earnings, which do not change at all whether company pays dividend or not. In fact they would increase if these companies stopped paying dividends, because there would be less taxation.
The fact that he can FORCE his owned companies to be cash cows and not reinvest poorly in their own businesses just supports what I said: there is no medium. Either pay out all, or reinvest. Buffett is 100% reinvestor. His cash cows are 100% payouters.
And if you don't understand the difference between bond and stock, we should stop talking right here. |
