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Here is why society is stupid ... Jeff Bezos/AMZN

By Rin following x   2018 Jul 16, 6:56pm 811 views   9 comments   watch   sfw   quote     share    


https://finance.yahoo.com/news/jezz-bezos-becomes-richest-man-152127913.html

Excerpt: "Bezos crossed the threshold just as Amazon prepares to kick off its 36-hour summer sales event, Prime Day. The company’s share price was $1,825.73 at 11:10 a.m. in New York, extending its 2018 gain to 56 percent and giving Bezos a $150.8 billion fortune.

His net worth has soared by $52 billion this year, which is more than the entire fortune of Mukesh Ambani, the newly crowned richest person in Asia. It also puts Bezos’s personal fortune within spitting distance of the Walton family’s $151.5 billion, which is the world’s richest dynasty."

Here's the problem with news like above ... it's all about Amazon's market cap.

Sure, the lowly Warren Buffet, with a mere ~$83B cap according to the same article, doesn't mention one thing ... Berkshire Hathaway, every single year, gets nearly $100B in dividend checks for simply holding onto its multi-trillion dollar portfolio.

In other words, as CEO & Chairman of the board, Buffet gets to spend more money than any normal billionaire's market cap on growing and expanding his holdings and as many know, Berkshire Hathaway pays no dividends to its shareholders, all of the dividends under the umbrella are Warren's for his business operations.

That's real power, not some market cap, media headline nonsense!
1   mell   ignore (2)   2018 Jul 16, 6:59pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Agreed.
2   Rin   ignore (3)   2018 Jul 16, 7:18pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

mell says
Agreed.


Does anyone want to disagree with mell or are we all in accordance?
3   Strategist   ignore (2)   2018 Jul 16, 7:28pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Rin says
In other words, as CEO & Chairman of the board, Buffet gets to spend more money than any normal billionaire's market cap on growing and expanding his holdings and as many know, Berkshire Hathaway pays no dividends to its shareholders, all of the dividends under the umbrella are Warren's for his business operations.


Buffet pays $10 for a haircut, and dines on burger and fries. He will have a hard time spending $100 billion.
4   Rin   ignore (3)   2018 Jul 16, 8:08pm   ↑ like (2)   ↓ dislike (0)   quote   flag        

Strategist says
Buffet pays $10 for a haircut, and dines on burger and fries. He will have a hard time spending $100 billion.


It's easy ... Prime Rib/Martinis/Hoes, for most of the time, and then, when the market crashes (downturns), buy more dividend yielding stocks to increase one's holdings.

Afterwards, when the markets recover, you've got even more holdings out there.

Trust me, you can fuck, eat great foods, and grow your holdings without losing anything.
5   Strategist   ignore (2)   2018 Jul 16, 8:33pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Rin says
Trust me, you can fuck, eat great foods, and grow your holdings without losing anything.


Rin, you are awesome. You are my sex advisor, wine connoisseur, and financial advisor.
I just want to start some kind of a sex/whore/travel/entertainment business with you, and take it public some day.
6   Rin   ignore (3)   2018 Jul 17, 12:30pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Concerning the world of financial advise ... for those who're not active traders, meaning the ppl who spend hours studying charts with or without Fibonacci retracements, Fractal Patterns, etc, IMO, it's best not to get into the euphoria of "Cap Gains". Realize that if "Cap Gains" is your primary target then more often than not, all it takes is a market crash to wipe out your retirement account.

And unfortunately, many of these robo-advisors come from the above world and thus, are useless.

The best strategy is reinvesting one's dividends to accrue more actual shares over a period time. And then, the game gets easier as all one needs to do with one's financial advisor is to figure out which companies may be cutting their dividends vs maintaining or increasing them over time. The key word here is maintenance, a company can't keep raising dividends if the business doesn't support it.

Here's an example, using Philip Morris (PM) as an example ...

https://dqydj.com/stock-return-calculator-dividend-reinvestment-drip



Starting with $50K, when the stock was less than $55 per share to where it was above $90, by reinvesting dividends, you didn't get a mere cap gain of 90 to 55 or 163% but actually, $148K to $50K in holdings with added shares (circa ~1600 starting at ~900) and a greater dividend yield per unit over time. If the market crashes and you enter a bear market channel, you'll still be compounding shares, but then, bought at an even cheaper price. You can easily go from ~1600 to ~3200 shares within a bear market with this strategy, assuming that the company doesn't cut dividends due to poor fiscal management.

When retirement kicks in, you just stop compounding your earnings and live off the dividend checks. This beats most annuities out there as many of those are indexed against the S&P500 cap gains and not compounding dividends of the high yielding dividend stocks.
7   Rin   ignore (3)   2018 Jul 17, 12:46pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Basically, since I'd cashed out 90% my equity at the hedge fund, only that remaining 10% is my final cap gains play. And judging by the company's growth, looks like it'll span out well.

The rest is all in dividend yielding stocks and some precious metals, for insurance.
8   HEYYOU   ignore (21)   2018 Jul 17, 2:29pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

It gets so old hearing people talk economics as if it will be tomorrow,as it is today.
Well,I guess they are right. The world has never experienced any economic problems.
Of course your set of living arrangements will never change. You will never lose on any of your investments.
How many yams can one buy with $150,000,000,000 when the currency collapses?
9   Strategist   ignore (2)   2018 Jul 17, 3:04pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

HEYYOU says
It gets so old hearing people talk economics as if it will be tomorrow,as it is today.
Well,I guess they are right. The world has never experienced any economic problems.


You talk as if economic problems with no good times, is what the world always experiences.




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