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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: Fredman who wrote (778)	12/24/1998 4:02:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 4691

Fred, why is a stock under $40 more affordable than one over $100? There is no longer a penalty for buying odd lots. Dividends are anathema to growth companies. The usual thinking among financial analysts is that companies ought to engage in a residual dividend policy. What that means is you give the investors a dividend only if you can't think of a better investment to make with the money. For example, you might have a choice between giving the investors a $100MM dividend or investing that money in a new product which is expected to earn 25% per annum over it complete life cycle. So, the answer to you question is I tend to avoid "growth" stocks paying a dividend (TYC and DELL are two exceptions). TTFN, CTC About oil, I agree with you. I own a few shares of GLM, and I figure that some day (fingers crossed) people will discover that oil is finite and we are running out rapidly and we'd better get some straws in the ground (or ocean).