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Investment Analysis Clubs / The BMW Method
|Subject: Re: A learning curve||Date: 9/19/2012 4:39 AM|
|Author: RaptorD2||Number: 40717 of 41627|
god, I love it when you put words in my mouth, kelbon. Literally, no less. You're planting apples and selling oranges.
You: As a real world example, imagine you bought Wal-Mart for its dividend yield at $45 a share and over a couple of years it rose to $73 a share, which it has. If you sell your Wal-Mart shares you can take your profits and now buy shares in a company whose dividend is yielding considerably more than Wal-Mart's is at the current stock price. [emphasis mine]
Me: What the yield is on WMT today makes no difference for your original investment, period. If you wanted an 8% return, then you shouldn't have bought Wally.
You: ~"Earn more because you have cap gains to invest." [paraphrased]
Me: Agreed, but that isn't what you were talking about in your post that I responded to, is it.
We can disagree every day, it's fine by me, that's how we learn. But let me make my own arguments if you please. :)
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