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Investment Analysis Clubs / The BMW Method


Subject:  Re: A learning curve Date:  9/11/2012  7:05 PM
Author:  culcha Number:  40710 of 41794

Thanks, Denny. I appreciate your remarks.

A dollar in dividend is exactly the same as a dollar in capital gains. What counts is the portfolio's CAGR.

Well, the money is the same (if you're making the money-is-fungible argument). But one difference between collecting dividends and making capital gains is that you have to sell in order to collect capital gains. With dividends, you don't. And if you've been careful to choose companies that raise their dividends at least as much as inflation, the dividend stream will actually grow.

I use a mixed approach ...

I do too -- somewhat. I recently had some BRK-B --no dividend, right?-- but sold for a gain. But in this thread I'm talking about my own learning curve. When I started investing (about 12 years ago), I didn't pay any attention to dividends. Now, growing older (65), I pay much more att