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View Diary: The Costco Effect... (231 comments)

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  •  Everything shifted to instant payback... (10+ / 0-)

    Shareholder returns got redefined as 'stock cost more at sale than at purchase' and not 'dividend check came in the mail'.

    Which means quarter by quarter profits are now the important metric, since the turnover of stock ownership is shorter than it used to be, and not 'this stock has paid good dividends ever since since the company went public and looks to be stable enough to pay good dividends for twenty more'.

    I've seen dividend checks for a company considered a great heavyweight in its industry that pays out per year per share less than the postage needed to send just one of the dividend checks. Unless you own as much of that company's stock as a hedge fund or a Romney can afford to, the dividend isn't large enough to be a reason to buy the stock. And it would take a period of time on the scale of a complete human lifetime to buy one new share using the dividends from another.

    Buying that company's stock HAS to be all about the resale value, because they aren't offering anything else to the shareholders.

    •  Berkshire Hathaway annual meeting discounts... (4+ / 0-)
      Recommended by:
      Eyesbright, Lujane, Texknight, ban nock

      Can be a good deal. They own Nebraska Furniture Mart, whose regular prices are more than competitive, and on annual meeting weekend the shareholder discounts seem to be around 30% on TVs and furniture. Good deals on boots, currently wearing the American made ones I bought at the 2012 annual meeting, and I'll probably pick up a Campbell-Hausfield pressure washer at the 2014 meeting.

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