/biz/ - Business & Finance

Dividend growth investing: The surefire path to subpar performance.

>>56378443
>I’m not sure what blind growth fund you’re talking about that beat Microsoft’s total return.
I just made one, using your own hypothetical assumptions. I have no obligation to find you some random public market ETF that matched your single stock. I've already given plenty of stock-to-stock examples and also the logical analysis of the venture portfolio approach.
But if you really want to make your own comparison, I'm sure SOXX did pretty well over the same timeframe, or SOXL if you really want to push the limits of growth within the ETF format.
10x over 10 years is 25% CAGR, ignoring the tax drag of dividend reinvestment. At least for MSFT the tax drag is small since it's hardly a dividend stock. But we have anons in this very thread sitting on 20x or better returns from an NVDA hold. Personally my average holding duration is not that long so my best individual position in my portfolio right now is up 600%. It is not a dividend player, nor is it even a tech stock. My holding period is 2 years.

>>56378469
>Sure three decades is a long time to wait but what’s the point of investing if you aren’t willing to be patient
The cool thing about KO as an example is that it was still an aristocrat in 2000, and still is today. Inevitably, you fuckers always reach the point in any divvy bro shill campaign of making the Buffett KO purchase as an example of the beauty of yield on cost. Meanwhile, it's plain to see how that investment has fared for all the buffett followers these past two decades...
See, the thing about Buffett is he's a value investor. He does not give a fuck about dividends. He bought KO in the 90s because it was cheap, and in the years since then he hasn't bought more. Even his own stock, BRK, one of the largest in the public market, does not pay a dividend - instead it utilizes buybacks. lmao.