Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (14223)	6/5/2000 2:03:00 PM
From: Kirk ©	Read Replies (1) \| Respond to of 15132

RE: 1966-80 Large Cap 6.71% Small Cap 14.09% The price appreciation on the large cap (as represented by the S&P 500) during the above period was 2.55% annualized. That means the remaining 4.16% came from dividends. What are the dividend yields now as compared to 1966? It's a safe bet that they are a lot, lot smaller now than they were in 1966. This is an old argument... I prefer to pay 20% FED taxes on price appreciation WHEN I NEED THE MONEY rather than $36% on dividends every year if I need them or not. You, clearly, are different. Dividends are no more a given then price appreciation. Just ask IBM shareholders in the early 1990's. Also another point regarding the small-cap segment. There is a wide disparity between the returns of the growth and the value parts. Surprisingly, it was small-cap value that did better (in fact, the best of all) in the period 1966-1980 while small-cap growth just crashed and burned, with annualized returns in the low single digits Good point. Question, Were they GROWING during that period?