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re: Some common myths about the markets that are untrue and/or 99% do not know
Posted on 4/16/24 at 4:09 pm to secfballfan
Posted on 4/16/24 at 4:09 pm to secfballfan
quote:Your framing is poor. There's a place for everything. Why does it have to be DIVIDENDS GOOD or DIVIDENDS BAD instead of "your portfolio should contain a mix of income-producing and growth companies"?
Dividends are a good sign. Nope, not really. While they are tax advantaged (a good thing) any company that pays a dividend is taking money out their operations. If the business was truly booming, they should not pay a dividend but reinvest in their business.
quote:And yet owns a portfolio of equities worth scores of billions of dollars where about half of those holdings pay substantial dividends.
Case and point- Buffett’s Berkshire has NEVER paid a dime in dividends
Again, your framing is sweeping and poor - completely lacking in nuance or actual understanding.
quote:Everyone knows this. However, they have been increasingly similar in the age of mega companies.
The DJIA and S&P 500 are calculated the same way. Nope the S&P 500 is market weighted where a stocks capitalization moves the market pro rata to its size. The DJIA moves based on each company’s stock price. So, if Goldman Sachs stock is trading at $400 and Honda at $200, GS has twice the impact as HON no matter their market capitalization.
quote:What % of total NYSE volume is through floor brokers? High enough that your point still stands? I'd be surprised.
Nope the NYSE uses floor brokers
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