UnThreaded | Threaded | Whole Thread (89) | Ignore Thread Prev | Next
Author: Dwdonhoff Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77402  
Subject: Re: Retirement, college, and Obamanomics Date: 1/1/2013 4:46 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
They don't all exclude dividends.

Technically, *NONE* of them exclude dividends, as the aggregate dividend yield is baked into the costs of the options used to hedge the trade... so the dividend is paid for (just as when buying the underlying security) and reflected in the ultimate performance (just as when buying the underlying security.)

But that's wayyy inside baseball, and far more complicated than needs to be understood. (Certainly more complicated than apparently some are capable of understanding ;~)

"The market index" could just as well be a random snail trail back & forth across a post-rain sidewalk. What matters is the bottom line results, which (on a risk, cost & tax weighted basis) outperforms the alternatives in the majority of markets for the majority of users.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (89) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Kiddie Card Board
Should kids have their own credit card?
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Berkshire's Golden Year
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.