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Strategies & Market Trends : Dividend investing for retirement

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Kip S
To: JimisJim who wrote (30468)1/22/2019 11:12:28 AM
From: robert b furman2 Recommendations  Read Replies (3) of 34328
 
Hi Jimi,

I think Buffet is right on to like dividend paying companies.

Once he buys them out - he absorbs the dividend and retains it as a war chest for further acquisitions.

Then accounting goes to work, writes off impaired intangibles and reduces the tax bill so further cash accumulation is accelerated.

If you own control of a company, you can embrace that kind of brilliant long term MO.

Afterall, dividends are taxed low - but a growth of assets that never get sold - never gets taxed beyond corporate income taxes (which is where impaired intangibles offset the tax bill.

It is a very efficient and fast growth investment model.

It does go hand in hand with DGI. The cash flow continues in down periods. Companies too much dependent on debt get into trouble and Warren buys them on the very cheap.

I've called him a chicken thief for years. He even humbled GS in 2008.

What one must consider is he started wealthy and highly educated. He stayed humble and has done extremely well.

Bob
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