SI
SI
discoversearch

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.
Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: JimisJim who wrote (30468)1/21/2019 3:38:13 PM
From: edward miller4 Recommendations

Recommended By
Fuzzy
Kip S
sm1th
Thehammer

  Read Replies (1) | Respond to of 34328
 
What you actually saying is that the Warren Buffett philosophy is "Dividends for me, but not for thee".



To: JimisJim who wrote (30468)1/22/2019 11:12:28 AM
From: robert b furman2 Recommendations

Recommended By
E_K_S
Kip S

  Read Replies (3) | Respond to 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