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Love Buffet’s investment strategy. That said, I think you are being slightly disingenuous when you use the stock purchase price when calculating percentage of return. It may be pertinent in Buffet’s case but it doesn’t reflect what is available for a new or current investor.
With the way things are moving ,I think I need to see a video on “how to survive amidst the present recession “.I mean everything in shambles Surprisingly I heard people still make over a 100k within a few months ,and i’d like to know how and if it’s still possible in these times or am I being lazy
Great tips ,Generally diversification is a kind factor Don’t put your eggs in one basket .pragmatically I have been into all of this for some time ,though I won’t say I have made or lost some fortune .Do you mind recommending a firm whose platform has diverse investing choices ? Quite rare I anticipate your response
Dividends from the stock market encouraged me to begin investing. What matters, in my opinion, is that if you invest and make additional money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can provide that benefit for your children, giving them a head start in life. I've invested more than $600K in dividend stocks throughout the years; I'm currently buying more today and will continue to do so until the price falls even further.
Hearing from an experienced investor who has survived the crisis and prospered is always comforting. It could be worrisome when your portfolio goes from green to red, but if you have invested in strong firms, you should just keep growing them and stick to your goal.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.
I think though this was well put out, but it isn't for me. Factoring a young mid income, short term minded person with constant need for cash, are these still recommended? I am new to all of these and have incurred so much losses, I am beginning to think I am not doing what is good for me but good for others
Excellent video!!! I earn passively trading stocks a noob with the help of a broker I met at a Finance seminar in UK who agreed to help me trade my funds, now I've reached my goal of over a million dollar value.
Congrats. She's a very good broker. My friend from Denmark, Ireland told me of his successful investment with this same lady Erlinia Jedraa Barrett, & how she tripled his 125k portfolio in couple months trading for him.
Time in the market is better than timing the markets. One of my favorite quote from Ken Fisher. This has been one of the reason people don't make it in financial markets, cos they don't understand time. You get in on time, you would make profits other than buying the hype and later losing out.
@@glendoragruz5766 You're correct, reason why I work with a financial advisor. Risk management, early entry and exits points, access to own stocks which is isn't available to the general public, these are few of many advantages. My life has changed and my approach to financial market better with lot of profits.
@@danalves47 Sheila Maureen Oneill is my financial advisor, I met her during a conference in new york, she's one of the best out there. She would do well to guide you.
Keep going. It was $32 that a company made for you. You are an owner without having to pay paychecks, etc. It works. I have been doing this for 30 years. As they say you can retire when your money goes to work for you, of course, work even after you are rich because it will keep you young.
@@asscass2 true, but it depends on your tax bracket. Ultimately some cash is better than no cash. Im retired and have zero earned income. Waiting 3 more years to collect SS @ 70.
This looks like the worst investing period. I just started investing last week when the market prices were a bit high, today I am more than 60% down! I feel very unlucky I should have waited. Hopefully, the markets will go back up. What do you use for market analysis?
love your video and my dad bought life insurance when back during 1990. it was expanding and sent him a letter would you like to own shares in the company because it is expanding. he said yes and he was getting a dividened of $400-$500 dollars a month. i did not find this out till many years later. i know that dividends can make you rich only if you know how to invest correctly.
@@taplubambhos2869 there are stocks that issue monthly dividends. For example: I would maybe initially buy 500 shares of JePI or Jepq(or split it up diversifying) and that would initially give me .61 cents a share(off of last months yield). Ultimately that would give me 300$ for that month. I could choose to buy more shares of those stocks or buy some other stocks. Thus; I’m building up my portfolio.
Hi I’m 20 years old and Im from italy, i focus my investment where I completly know The company and I see value, i do not focus on dividend.because 40% of it would be taxed for double tax (american+italian) should i focus on dividend anyway?
You never completely know a company, what are you talking about? You drink coca-cola, you ever made coca cola? Worked in a factory? Nobody ever knows a company, not even Warren. Focus on dividend companies. Not their dividends.
The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do - if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.
I’m new to invest. I assume the more shares /stocks you own will yield more deletion the stock you purchase, correct? And it’s best to buy dividend yielding stocks?
Hey Dwayne I am not sure of your first question. Second question: It is not always best to buy dividend yielding stocks. It only makes sense if you value that incoming cash flow very heavily and can use that to make more money or help you personally. For example: If you build a large dividend or bond portfolio that produces $10,000 a year in 'passive' income, and you are constantly looking for new deals to make, things to buy, real estate to purchase, cars to flip, coins and cards to speculate on, company's to invest in, than that $10,000 of passive income is amazing and you constantly have great cash flow to buy into new opportunities you find out in the world. Or if you want to use that income to pay some of your bills, increase the quality of your life by having more income, etc. then it also is a great option to invest in cash flowing assets. Or if you want remove some of the risk of investing in stocks, buying cash producing assets paying you regularly helps offset the risk of stocks by getting a return on your investment every month, quarter, bi year or year. You get rewarded for owning those dividend paying companies even if the price of the asset goes down. Opposite of that, a growth or price appreciation stock that does not pay a dividend, if you buy one at $100 a share, and that company goes up to $150 a share and you don't sell and then the price goes down to less than $100 a share for the next 10 years, you are unable to realize any gains at all and if you want to get that money back you have to sell at a loss. If that company paid a dividend you at least have the cashflow from the company as a realized gain to make it more worth your while and can use that money to buy into new opportunities or buy more shares of the same company while the price of the share is low. Many investors don't want to follow the markets, they don't want to have to think about this stuff constantly and stay up to date with economic and market events. In that case Index funds are the best option. They own a basket of companies or bonds or real estate or whatever you want. They buy and sell on their own and you don't have to move a finger. Most index funds pay a small dividend and you can either collect that and move it to your checking account every so often or set it up to reinvest back into the same index fund and help it grow further. Also index funds have investors see some of the best gains on average of any method! So sometimes less is more. Hope that helps some.
New investor here, and I've of course watched so much WB these last few weeks and I have a question. Isn't WB against dividend stocks because he'd rather the companies he invests in increase their market cap rather than pay out shareholders?
Buffet states that the only time dividends should be given is when the company cannot find ways to produce more value from that money. That’s why Berkshire never pays dividend, because they always reinvest it well.
Still don't get it: What's the point of preferring dividend stocks over non-dividend stocks? Sure, you have a great dividend yield on your cost basis when you buy a great dividend business. BUT: You also have a great profit yield on your cost basis when you buy a great non-dividend business. So you should watch out for great businesses independent of whether or not they pay a dividend. In terms of fees and taxation, it's even better to NOT buy a dividend stock. The only thing that speaks in favor of dividend stocks: If you don't know what a good business looks like, you can just look for dividend aristocrats and you won't do too bad. But in that case an S&P500 ETF might be an even better and safer choice.
The point is using the dividend to buy further cash producing assets in different fields thus increasing your networth, increasing your income and derisking against downtrends or failed companies or sectors.
I've been considering buying ETFs/SCHD stocks for retirement, I have set asides $100k but somewhere along the line, I get cold feet maybe because I'm a rookie and have no idea what I'm doing, please I could really use some guideline
@@robertalexandro2162 There are good names out there, people that have shown consistency. Like DOROTHY DONNA TAGLIENTE, she's currently my coach. Lookup the name , you can reach her through her home page.
Buffett is the ultimate CEO. That is where his abilities are. He understands how to effectively distribute capital. That is what every CEO should do and he has found his niche that could scale out. Sees saw what was seen in Buffett. The effective allocation of financial capital is one of the most difficult aspects of a business. He can buy out companies that have a high shareholder yield and have a competitive niche and advantage over an extended period and then redistribute that high shareholder yield into a another niche. It isn't rocket science but understanding the right capital allocation and maintaining the right teams is key. Quality is better than quantity but if you put too much smoked salt on a chocolate, then you cannot enjoy the quality. it is all about quality allocation more so than anything.
Interesting content. Is it still advisable to leave idle money in a savings account at an average interest rate of 0.85%? I want a better way to diversify my portfolio and with current inflation, crypto gain taxes are no joke. I also have to ask, due to the current crash in stock prices, housing, and the financial market in general, I would like to know the most efficient way to make my money work for me without falling due to market fluctuations as we are in a bear market. Any tips?
Hey Zach you should do more stock reviews on companies like Sherman-Williams, Starbucks, Nike,Intuit and other because doing these stock reviews will allow for a good battle plan of new stocks to buy during the stock market crash
@@latashawilkins3 yeah, I ended up getting an s & p 500 etf, I've realised there's no point having dividend stock until you've 100k or so already saved up, you're talking maybe 4% dividends at best
Slow and steady wins the race... I love Buffett because he has not created some special strategy, it stuck to what works and that is finding quality companies (most pay dividends) and holding onto them for better or worse, talk about married to a stock!
I've been at it for about 3 years now I make around 150 a month and it grows every single month! I love it just wish school would've taught me about dividends.
If you have some kind of earned income like w2 and pay taxes, dividend stocks/fund may not be the best option, unless held in tax deffered accounts like roth ira.
I'm a disciple of Buffett and Bogle. My largest position is VTI but I do own a couple stocks that Buffett loves. Bit of a hybrid approach. Gives me comfort that I'm following the decisions of arguably the greatest investor ever.
We own index funds(ETFs) in areas where we don’t have a lot of expertise. I think Buffet pushed this model for people who did not have the time to study the company’s balance sheet. I think both models work for different mindsets.
@@CS-qc7np No. Buffet has repeatedly stated, and very clearly, that the likelihood of individual investors outperforming the index is extremely low. Studies have shown over any given 20 year period less than 1% of active Wall Street portfolio and fund managers beat the S&P500. The numbers get even worse when you factor in the fees expenses and taxes that come with active portfolio management. Yes, some people do beat the index. Buffet is proof of that. You can add Peter Lynch to that very short list, although he got out of the game fairly early. But most of the VERY few private investors who have pulled it off, if they are honest, will admit that there was a lot of luck involved. Usually, they made one or two highly speculative investments, and just hung on and got very lucky. Maybe they bought AMAZON back in the 90's and never sold. I'm told some people win the lottery too. But I've never met anybody who has.
hey man. i'm sure i asked about this before but can you list a solid platform to buy dividen stocks that gives compound interests back into your dividen or that would be best for beginner investors? I'm currently using Freetrade and they're okay but there are limited options.. If you could read my comment and perhaps help the uk fellow subscriber out i would really appreciate it. thanks man. love your contents.
yes it sounds very good indeed that you can make so much from 1965 to 2021 but if you start thinking what you could buy for 1000$ in US in 1965 an now it is exactly different the same with how much you earned.
I do treasure the update we are having everyday but I can stop to wonder how people make profit in Stocks, I know it is a legitimate way to gain financial freedom but how is it done?
Love this! Charting more and more dividend stocks out, I'm getting more and more on board with it. I've been looking at stocks that are currently paying out a 5-6% dividend rate. And my initial thought was.. Why bother when inflation is 9%? I mean, isn't a 6% return automatically loosing 3% right out the gate?! What I have come to realize are 2 things: 1) Your personal inflation rate is not the same as the overall national rate of inflation. As an example, we are living on about 50% of our income, and a good chunk of that are fixed cost purchases like our house payment. Our personal inflation rate is not based on our total take-home income, it is based on our increase in spending. So after doing a bit of spreadsheeting, our typical inflation rate has been 1.5%, and right now it is about 4%. This is far less than the 9% average inflation rate, mostly because we buy a lot of used or cheap off-brand items that are less volitile in cost to begin with. And because we have an established household we can wait for a sale or a deal on things instead of being forced to make purchases right away when we want or need a thing. 2) Not all rates are equal, as they are heavily dependant on the size of the investment. So this year our living expenses are about $45k. Our take home pay is about $90k. So if our personal inflation rate is near 4%, then our take-home pay actually only needs to increase 2% to keep up with lifestyle cost increases. I'd love for it to go up faster than that, but 2%+ is still progress for us. From a personal finance perspective, this puts a whole different spin on investing and rates. Technically speaking, any investment with a 1.5% or better dividend rate is going to grow well along with my personal long term inflation rate. So then when I am looking at big name companies that have historically been at a 2-3% rate, but are currently at a 5-8% rate and have never before cut their dividend rate... Well, even if the stock continues to decline, we are talking about returns that far out-strip my personal growth needs. And 5 years from now, assuming things improve, we should see dividends increase again, which should increase today's investments northward of 15-20% dividend gains by retirement. Like... im not quite sure how to properly express that. I feel like a crazy person starting to buy in right now knowing full well that prices are likely to continue falling. But I know that I will be unable to move enough money fast enough to capture the bottom, and if the return today is already "good" and with a great future ahead, then why even bother waiting?
I think I know what you mean? let's take food as an example. I still spend the same amount of money each week on my groceries, I now look for cheaper alternatives more than I might have before and have to be a bit more creative..Admittedly I am getting less for my money due to inflation but I'm not increasing spending on feeding myself. I live alone so I can eat beans and rice for a month if I want,it doesn't bother me too much? I suppose this is a quality thing? Of course I would rather have more for less but I still save the same amount each week regardless.
Thanks so much for the content. I feel like I found a portion of the answer I’m looking for. I really just need a clear answer though. I just got offered a position of CMO as a co-founder and I have been offered 5% of the company but I’m not quite sure what I should ask for or expect as a salary.. because it’s a start up I’m trying to figure out how exactly do I get paid actual money.. 😅I’m afraid to ask because I don’t want to seem nervous and get duped for my lack of understanding. this is my first time stepping into a position like this. I’ve only ever done Marketing and Consulting. this is a whole new world to me. I would really appreciate it if anybody had any answers as to what I should ask for as an initial salary or how I should go about acquiring a payment outside of equity because we are in the pre-seed/seed round so the company doesn’t have much money. What should I ask as far as a salary agreement and expect it to scale overtime?
The shares are owned by Berkshire Hathaway not individually by Buffett. So the shares will continued to owned by the company, unless they choose to sell. In the past, Buffett has said they would never sell.
But grows every year around 8,5% , so you get around 9% yield when you keep holding long enough and on top they buy back shares like crazy , make way more money than paying dividends and sit on big cash for buying more business and grow bigger . Look at dividend yiel + growth
He likes them because he can compound them within Berkshire tax free. The advice doesn't apply to ordinary people. Hence, Berkshire doesn't pay a dividend
You have analyzed Berkshire Hathaway’s current holdings and concluded that it would make about $6B in dividends, how much would it make in dividends if the entire Berkshire Hathaway investments was in the S&P 500 and not the individual stocks?
I'm thinking about investing in BRK in a future. The problem is, that I don't know, how much are their investments dependent on him and Charlie and if they can continue these results without them. I mean Buffett is 92 and Munger 98. They won't be here forever.
Ted and tod will manage all investing decisions after WB and CM leave the company. Greg Abel is already chief operating officer and ajit jain chief insurance
too bad that i startr invest into brk only 6 month ago but i will stick with this tock for long i just dont know what will hapen when he will die i bellive stock will crash like crazy
They will still own all the same businesses. Berkshire is a compounding machine. It's heavily decentralized with all the individually managed businesses. For future capital allocation, there are a lot of people who have been training and working with him for many years. Greg Abel has been named as the successor CEO.
I have a $10,000 portfolio- is there much point in investing in dividend stocks? I’m not going to have much returns from it anyway so I’m not sure about it
Don't just buy a stock because it pays a decent dividend though?. It might be a sighn that it doesn't invest enough into its own company and gives all its profits to shares holders, and thats not always a good sighn. You might be better with a good ETF and cost price average if you have time on your side.
The idea is to build it. You won't make much the first year. But if you make 10% you will get $1000, plus if you invest another 5k in that year, the next year you will have 16k and make $1600 in dividends(at 10%). It will go up every year. It will only take a few years and you will be making an extra 5-10k per year in dividends.
The crypto market is facing a key moment right now, in a very short time it's gonna see a breakout to new record highs. This is a critical moment that every Investor needs to be aware of buying more With the current market trends, Investing in bitcoin now would be a very smart move to make as it's gonna skyrock soon....
All these real estate fan boys clowning around with bad tenants while their rent is passive income, and he I am sitting back earning as much in dividends.
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose is the result of hard work and hustle over time
Did this help reframe your investing outlook?
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What's your opinion on ETF's?
Love Buffet’s investment strategy. That said, I think you are being slightly disingenuous when you use the stock purchase price when calculating percentage of return. It may be pertinent in Buffet’s case but it doesn’t reflect what is available for a new or current investor.
With the way things are moving ,I think I need to see a video on “how to survive amidst the present recession “.I mean everything in shambles
Surprisingly I heard people still make over a 100k within a few months ,and i’d like to know how and if it’s still possible in these times or am I being lazy
Great tips ,Generally diversification is a kind factor Don’t put your eggs in one basket .pragmatically I have been into all of this for some time ,though I won’t say I have made or lost some fortune .Do you mind recommending a firm whose platform has diverse investing choices ? Quite rare I anticipate your response
Best time to make money.A recession never meant you don’t get to make the money ,quite the opposite
Dividends from the stock market encouraged me to begin investing. What matters, in my opinion, is that if you invest and make additional money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can provide that benefit for your children, giving them a head start in life. I've invested more than $600K in dividend stocks throughout the years; I'm currently buying more today and will continue to do so until the price falls even further.
Hearing from an experienced investor who has survived the crisis and prospered is always comforting. It could be worrisome when your portfolio goes from green to red, but if you have invested in strong firms, you should just keep growing them and stick to your goal.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.
this is incredible! how can I vet your advisor, mind sharing info, if you please?
The advisor that guides me is Sonya lee Mitchell, most likely the internet is where to find her basic info, just search her name. She's established.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
I think though this was well put out, but it isn't for me. Factoring a young mid income, short term minded person with constant need for cash, are these still recommended? I am new to all of these and have incurred so much losses, I am beginning to think I am not doing what is good for me but good for others
I am the exact situation. its getting exhausting
Excellent video!!! I earn passively trading stocks a noob with the help of a broker I met at a Finance seminar in UK who agreed to help me trade my funds, now I've reached my goal of over a million dollar value.
I've a lump sum I need to invest but I'm a noob with no idea on how to invest. Who is your broker & how can I reach him help me trade?
@@chrisbilly1555 Okay, she is known as Erlinia Jedraa Barrett, make some research on her.
Congrats. She's a very good broker. My friend from Denmark, Ireland told me of his successful investment with this same lady Erlinia Jedraa Barrett, & how she tripled his 125k portfolio in couple months trading for him.
Time in the market is better than timing the markets. One of my favorite quote from Ken Fisher. This has been one of the reason people don't make it in financial markets, cos they don't understand time. You get in on time, you would make profits other than buying the hype and later losing out.
I agree with you but this requires technical know how, consistency and experiences.
@@glendoragruz5766 You're correct, reason why I work with a financial advisor. Risk management, early entry and exits points, access to own stocks which is isn't available to the general public, these are few of many advantages. My life has changed and my approach to financial market better with lot of profits.
@@matteoantonio4644 Do you mind sharing info about your advisor, I'm new to financial markets and would need guidance.
@@danalves47 Sheila Maureen Oneill is my financial advisor, I met her during a conference in new york, she's one of the best out there. She would do well to guide you.
Just look up her full name online and read about her on her page.
I only earn about $32 a month in dividends but its a start!
Keep going. It was $32 that a company made for you. You are an owner without having to pay paychecks, etc.
It works.
I have been doing this for 30 years.
As they say you can retire when your money goes to work for you, of course, work even after you are rich because it will keep you young.
Don’t stop. I was there once . My average monthly now is 175 a month
Thats good 32$
how much would you have to have invested to earn $50 usd monthly ?
Brick by Brick baby!
Berkshire bought BofA at $6. I remember that purchase.
I love dividends because it’s paying me while I wait for capital appreciation. Also dividend payments are real, not paper money you can use now.
But you get taxed along the way. Paper money can be acquired when the money is needed.
@@asscass2 true, but it depends on your tax bracket. Ultimately some cash is better than no cash. Im retired and have zero earned income. Waiting 3 more years to collect SS @ 70.
@@cashflow68 ah yes. In that scenario dividend stock offer some nice passive income.
@@asscass2 You’ll be doing yourself a disservice if you avoid dividend stocks because of tax.
@@recycle_your_money I have them in my Roth IRA. And some SCHD in my taxable once it max out my taxed advantage accounts
Just got into ARCC today. I buy OTC and small stocks, but I love my dividend stocks also!
This looks like the worst investing period. I just started investing last week when the market prices were a bit high, today I am more than 60% down! I feel very unlucky I should have waited. Hopefully, the markets will go back up. What do you use for market analysis?
Most of them use auto-traders or copy-trade Charles Matthew Alsip. That is how they make enormous profits from the seemingly unknown market.
@@toyko7200 You are right Almost all of them on lg copy Charles.
@@toyko7200 My colleague advised I work with him sometime after the 2009 market crash. Ended up not working with him, sily me.
More blood to come
what are you buying that's down 60% in a week? It's not time problem, but your problem
love your video and my dad bought life insurance when back during 1990. it was expanding and sent him a letter would you like to own shares in the company because it is expanding. he said yes and he was getting a dividened of $400-$500 dollars a month. i did not find this out till many years later. i know that dividends can make you rich only if you know how to invest correctly.
Start with monthly dividend stocks and let it build up for a couple of months and use that money to fund the rest of portfolio.
Which platform do you use for buying shares
Can you please elaborate a little with an example
@@taplubambhos2869 there are stocks that issue monthly dividends. For example: I would maybe initially buy 500 shares of JePI or Jepq(or split it up diversifying) and that would initially give me .61 cents a share(off of last months yield). Ultimately that would give me 300$ for that month. I could choose to buy more shares of those stocks or buy some other stocks. Thus; I’m building up my portfolio.
@@Realest636 thanks! Is this strategy good for long term as well?
@@taplubambhos2869 it’s all long term.
Hi I’m 20 years old and Im from italy, i focus my investment where I completly know The company and I see value, i do not focus on dividend.because 40% of it would be taxed for double tax (american+italian) should i focus on dividend anyway?
You never completely know a company, what are you talking about? You drink coca-cola, you ever made coca cola? Worked in a factory? Nobody ever knows a company, not even Warren. Focus on dividend companies. Not their dividends.
no don't focus on dividend solely anyway, sounds like you have a good plan!
I wish I didn't have to pay for anything and could put $2500 a month back into my portfolio 🙃
The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do - if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.
@@user-vk2cd9qw7i Sounds like something Munger would say =D
Mr. Buffet single handedly holding the USA markets afloat.
I’m new to invest.
I assume the more shares /stocks you own will yield more deletion the stock you purchase, correct?
And it’s best to buy dividend yielding stocks?
Hey Dwayne I am not sure of your first question.
Second question: It is not always best to buy dividend yielding stocks. It only makes sense if you value that incoming cash flow very heavily and can use that to make more money or help you personally.
For example: If you build a large dividend or bond portfolio that produces $10,000 a year in 'passive' income, and you are constantly looking for new deals to make, things to buy, real estate to purchase, cars to flip, coins and cards to speculate on, company's to invest in, than that $10,000 of passive income is amazing and you constantly have great cash flow to buy into new opportunities you find out in the world. Or if you want to use that income to pay some of your bills, increase the quality of your life by having more income, etc. then it also is a great option to invest in cash flowing assets. Or if you want remove some of the risk of investing in stocks, buying cash producing assets paying you regularly helps offset the risk of stocks by getting a return on your investment every month, quarter, bi year or year. You get rewarded for owning those dividend paying companies even if the price of the asset goes down.
Opposite of that, a growth or price appreciation stock that does not pay a dividend, if you buy one at $100 a share, and that company goes up to $150 a share and you don't sell and then the price goes down to less than $100 a share for the next 10 years, you are unable to realize any gains at all and if you want to get that money back you have to sell at a loss. If that company paid a dividend you at least have the cashflow from the company as a realized gain to make it more worth your while and can use that money to buy into new opportunities or buy more shares of the same company while the price of the share is low.
Many investors don't want to follow the markets, they don't want to have to think about this stuff constantly and stay up to date with economic and market events. In that case Index funds are the best option. They own a basket of companies or bonds or real estate or whatever you want. They buy and sell on their own and you don't have to move a finger. Most index funds pay a small dividend and you can either collect that and move it to your checking account every so often or set it up to reinvest back into the same index fund and help it grow further. Also index funds have investors see some of the best gains on average of any method! So sometimes less is more.
Hope that helps some.
New investor here, and I've of course watched so much WB these last few weeks and I have a question. Isn't WB against dividend stocks because he'd rather the companies he invests in increase their market cap rather than pay out shareholders?
Buffet states that the only time dividends should be given is when the company cannot find ways to produce more value from that money. That’s why Berkshire never pays dividend, because they always reinvest it well.
@@parutosan They paid a dividend once and it was a meeting buffet missed.
Your absolutely correct. He has spoken Multiple times to this but a lot of CZcams people know if they put his name in something it gets more views.
How big is the impact from options for Berkshire Hathaway?
Would it be smart to just invest in SCHD and VOO?
Yes
Yes
I think that’s a reasonable decision. I have a bunch of VOO. I also have some SCHD and VIG, which is similar to SCHD.
ya
These vids always keep me focussed all the noise from the market does definitely mess with your mindset.
Still don't get it: What's the point of preferring dividend stocks over non-dividend stocks?
Sure, you have a great dividend yield on your cost basis when you buy a great dividend business.
BUT: You also have a great profit yield on your cost basis when you buy a great non-dividend business.
So you should watch out for great businesses independent of whether or not they pay a dividend.
In terms of fees and taxation, it's even better to NOT buy a dividend stock.
The only thing that speaks in favor of dividend stocks:
If you don't know what a good business looks like, you can just look for dividend aristocrats and you won't do too bad. But in that case an S&P500 ETF might be an even better and safer choice.
The point is using the dividend to buy further cash producing assets in different fields thus increasing your networth, increasing your income and derisking against downtrends or failed companies or sectors.
I've been considering buying ETFs/SCHD stocks for retirement, I have set asides $100k but somewhere along the line, I get cold feet maybe because I'm a rookie and have no idea what I'm doing, please I could really use some guideline
You can buy dividend ETFs if you don't want to get into individual stocks. My favorite is SCHD. you can use a coach
@@JuanCarlos-ln2xt A coach sounds like a good idea, but how can I get a reliable one considering the nature of the market today?
@@robertalexandro2162 There are good names out there, people that have shown consistency. Like DOROTHY DONNA TAGLIENTE, she's currently my coach. Lookup the name , you can reach her through her home page.
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Buffett is the ultimate CEO. That is where his abilities are. He understands how to effectively distribute capital. That is what every CEO should do and he has found his niche that could scale out. Sees saw what was seen in Buffett. The effective allocation of financial capital is one of the most difficult aspects of a business. He can buy out companies that have a high shareholder yield and have a competitive niche and advantage over an extended period and then redistribute that high shareholder yield into a another niche. It isn't rocket science but understanding the right capital allocation and maintaining the right teams is key. Quality is better than quantity but if you put too much smoked salt on a chocolate, then you cannot enjoy the quality. it is all about quality allocation more so than anything.
the best businesses are the ones everyone uses but no-one talks about
Levi Strauss comes to mind
Most dividends are around 3/4% or so, I'm tempted to buy sone but even 100k is only a few k a year
Buffett knows! 😎🎉💰
Easily has become one of my favorite channels on YT. Completely underrated. Great work! Keep it up!
More videos on the way!
You do not think about the tax ramifications in a tax brokerage account with dividend stocks? Do you subtract the tax from the yield?
The tax implications are the same as the long term capital gains tax for most. Will pay 15% either now or later.
Invest in a ROTH. No taxes
Interesting content. Is it still advisable to leave idle money in a savings account at an average interest rate of 0.85%? I want a better way to diversify my portfolio and with current inflation, crypto gain taxes are no joke. I also have to ask, due to the current crash in stock prices, housing, and the financial market in general, I would like to know the most efficient way to make my money work for me without falling due to market fluctuations as we are in a bear market. Any tips?
interest rate of 0.85% meanwhile inflation is 2-3% you're losing money. You're better off investing in ANYTHING else.
I’ve been a blue chip investor for over 40 years ! Yes up and downs but worth it ! I take a deep breath and ride the pony 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸
Others videos said Warren Buffet hates devidend stocks, so which one the right one?
Diversification
How does b-hath channel those dividends if not to the fund shareholder?
Amazing video thank you very much
Can you make a video on nike stock? Looks in a good value now
Possibly. I see it's down 11% pre market.
🎉i just started on 24 will be 10, dolars dividends per month, next year 25 per month average im so happy ,i gona to invest all dividends
Hey Zach you should do more stock reviews on companies like Sherman-Williams, Starbucks, Nike,Intuit and other because doing these stock reviews will allow for a good battle plan of new stocks to buy during the stock market crash
Starbucks please e
Sell puts on Nike at like $65
Im new to dividend stocks, I can't decide if I should choose my own stocks or pay for I think it's called an etf where there's already a portfolio
I like the idea of ETFs after listening to Buffett.
@@latashawilkins3 yeah, I ended up getting an s & p 500 etf, I've realised there's no point having dividend stock until you've 100k or so already saved up, you're talking maybe 4% dividends at best
Heyyyy, some good ole DD in the mornin 🙌🏻🙏🏻
🤙👨💻
christ. was drinking coffee when that shaq and kevin hart showed up. that timing. great video btw
Nothing fires me up more than dividend stocks, great video Zach
Slow and steady wins the race... I love Buffett because he has not created some special strategy, it stuck to what works and that is finding quality companies (most pay dividends) and holding onto them for better or worse, talk about married to a stock!
I make $1025 a month in dividend stocks. This is why I love them so much.
Do you have your money invested in multiple dividend stocks or just went full speed ahead in one dividend stock?
@@Draega007 I invest and reinvest a lot of good dividend stocks (MSI, MSFT, XOM, QCOM...). I like diversification.
I've been at it for about 3 years now I make around 150 a month and it grows every single month! I love it just wish school would've taught me about dividends.
If you have some kind of earned income like w2 and pay taxes, dividend stocks/fund may not be the best option, unless held in tax deffered accounts like roth ira.
Buffet generally believes that most investors should have most of their money in a cheap S&P 500 index fund.
I'm a disciple of Buffett and Bogle. My largest position is VTI but I do own a couple stocks that Buffett loves. Bit of a hybrid approach. Gives me comfort that I'm following the decisions of arguably the greatest investor ever.
Don't be like most investors.. even then that's better than 90% of the people who don't know anything about money finance or investing.
We own index funds(ETFs) in areas where we don’t have a lot of expertise. I think Buffet pushed this model for people who did not have the time to study the company’s balance sheet. I think both models work for different mindsets.
@@CS-qc7np No. Buffet has repeatedly stated, and very clearly, that the likelihood of individual investors outperforming the index is extremely low. Studies have shown over any given 20 year period less than 1% of active Wall Street portfolio and fund managers beat the S&P500. The numbers get even worse when you factor in the fees expenses and taxes that come with active portfolio management. Yes, some people do beat the index. Buffet is proof of that. You can add Peter Lynch to that very short list, although he got out of the game fairly early. But most of the VERY few private investors who have pulled it off, if they are honest, will admit that there was a lot of luck involved. Usually, they made one or two highly speculative investments, and just hung on and got very lucky. Maybe they bought AMAZON back in the 90's and never sold. I'm told some people win the lottery too. But I've never met anybody who has.
@@jec1ny please explain how this relates to my comment about my Investments.
Isn't it ironic that Berkshire doesn't offer a dividend? But to be fair I trust Berkshire to use that money more effectively than I could XD
Awesome video brother! I always look forward to seeing your latest content.
hey man. i'm sure i asked about this before but can you list a solid platform to buy dividen stocks that gives compound interests back into your dividen or that would be best for beginner investors?
I'm currently using Freetrade and they're okay but there are limited options..
If you could read my comment and perhaps help the uk fellow subscriber out i would really appreciate it.
thanks man. love your contents.
Trading 212 is much better than freetrade.
I’ve never even heard of freetrade or trading 212. Get Fidelity.
@@AJohnson0325 UK based.
Try trading 212
Buy O, Main, Jepi, Schd are some of my suggestions. Anyone else have their suggestions please put it here.
yes it sounds very good indeed that you can make so much from 1965 to 2021 but if you start thinking what you could buy for 1000$ in US in 1965 an now it is exactly different the same with how much you earned.
Cool stuff...Anyone else invest in Dogs of the DOW?
I would like to buy 1 share in BRK one day
I do treasure the update we are having everyday but I can stop to wonder how people make profit in Stocks, I know it is a legitimate way to gain financial freedom but how is it done?
Glad to see one of my FTSE All-World positions work out so well.
The more u invest
The more u understand him
this video just caught my eyes... love your contents... subbed ! a fellow creator
Love this!
Charting more and more dividend stocks out, I'm getting more and more on board with it. I've been looking at stocks that are currently paying out a 5-6% dividend rate. And my initial thought was.. Why bother when inflation is 9%? I mean, isn't a 6% return automatically loosing 3% right out the gate?!
What I have come to realize are 2 things:
1) Your personal inflation rate is not the same as the overall national rate of inflation. As an example, we are living on about 50% of our income, and a good chunk of that are fixed cost purchases like our house payment. Our personal inflation rate is not based on our total take-home income, it is based on our increase in spending. So after doing a bit of spreadsheeting, our typical inflation rate has been 1.5%, and right now it is about 4%. This is far less than the 9% average inflation rate, mostly because we buy a lot of used or cheap off-brand items that are less volitile in cost to begin with. And because we have an established household we can wait for a sale or a deal on things instead of being forced to make purchases right away when we want or need a thing.
2) Not all rates are equal, as they are heavily dependant on the size of the investment.
So this year our living expenses are about $45k. Our take home pay is about $90k. So if our personal inflation rate is near 4%, then our take-home pay actually only needs to increase 2% to keep up with lifestyle cost increases. I'd love for it to go up faster than that, but 2%+ is still progress for us.
From a personal finance perspective, this puts a whole different spin on investing and rates. Technically speaking, any investment with a 1.5% or better dividend rate is going to grow well along with my personal long term inflation rate.
So then when I am looking at big name companies that have historically been at a 2-3% rate, but are currently at a 5-8% rate and have never before cut their dividend rate... Well, even if the stock continues to decline, we are talking about returns that far out-strip my personal growth needs. And 5 years from now, assuming things improve, we should see dividends increase again, which should increase today's investments northward of 15-20% dividend gains by retirement.
Like... im not quite sure how to properly express that. I feel like a crazy person starting to buy in right now knowing full well that prices are likely to continue falling. But I know that I will be unable to move enough money fast enough to capture the bottom, and if the return today is already "good" and with a great future ahead, then why even bother waiting?
I think I know what you mean? let's take food as an example. I still spend the same amount of money each week on my groceries, I now look for cheaper alternatives more than I might have before and have to be a bit more creative..Admittedly I am getting less for my money due to inflation but I'm not increasing spending on feeding myself. I live alone so I can eat beans and rice for a month if I want,it doesn't bother me too much? I suppose this is a quality thing? Of course I would rather have more for less but I still save the same amount each week regardless.
Thanks so much for the content. I feel like I found a portion of the answer I’m looking for. I really just need a clear answer though. I just got offered a position of CMO as a co-founder and I have been offered 5% of the company but I’m not quite sure what I should ask for or expect as a salary.. because it’s a start up I’m trying to figure out how exactly do I get paid actual money.. 😅I’m afraid to ask because I don’t want to seem nervous and get duped for my lack of understanding. this is my first time stepping into a position like this. I’ve only ever done Marketing and Consulting. this is a whole new world to me. I would really appreciate it if anybody had any answers as to what I should ask for as an initial salary or how I should go about acquiring a payment outside of equity because we are in the pre-seed/seed round so the company doesn’t have much money. What should I ask as far as a salary agreement and expect it to scale overtime?
Did you get the job Candice?
Hey bro what happens to Buffets Coca Cola shares when he dies? Will it crash the stock and stop dividend growth on KO stock?
The shares are owned by Berkshire Hathaway not individually by Buffett. So the shares will continued to owned by the company, unless they choose to sell. In the past, Buffett has said they would never sell.
but 42% of his portfolio as shown in video is and apple stock which dosent pay huge dividends
But grows every year around 8,5% , so you get around 9% yield when you keep holding long enough and on top they buy back shares like crazy , make way more money than paying dividends and sit on big cash for buying more business and grow bigger .
Look at dividend yiel + growth
Keep the dividends and videos flowing!
Dividence is not the way to start it’s the way to go once you have money behind you
I respectfully disagree.
I agree to disagree 😂
Time is the biggest factor
Now in India, Divident income is not tax free... 🥺
Because of this only bro im now investing in usa market rather than our market slowly accumulating ko every month
its not tax free in most countries
@@Mri881 won't that also be taxed when it comes in your Indian account
Use a Roth Ira first for your dividend investments for tax free money.
He likes them because he can compound them within Berkshire tax free. The advice doesn't apply to ordinary people. Hence, Berkshire doesn't pay a dividend
Hey love the video’s you put out I had a dividend stock request if possible can you do your review on fedex or even UPS
You have analyzed Berkshire Hathaway’s current holdings and concluded that it would make about $6B in dividends, how much would it make in dividends if the entire Berkshire Hathaway investments was in the S&P 500 and not the individual stocks?
Still the best intro
why brekshire don't pay any dividend?
Great video about great businesses
I'm thinking about investing in BRK in a future. The problem is, that I don't know, how much are their investments dependent on him and Charlie and if they can continue these results without them. I mean Buffett is 92 and Munger 98. They won't be here forever.
Ted and tod will manage all investing decisions after WB and CM leave the company. Greg Abel is already chief operating officer and ajit jain chief insurance
Viewer from india, tamilnadu.
Great video! Thanks!
too bad that i startr invest into brk only 6 month ago but i will stick with this tock for long i just dont know what will hapen when he will die i bellive stock will crash like crazy
They will still own all the same businesses. Berkshire is a compounding machine. It's heavily decentralized with all the individually managed businesses. For future capital allocation, there are a lot of people who have been training and working with him for many years. Greg Abel has been named as the successor CEO.
My next stock purchase will be Costco
Good choice !
thank you!
I wish buffet would pay a dividend to the share holders
I agree. Stock buybacks do not benefit folks who hold stocks for years.
How you come out with that intro?
Thanks
Just subscribed !
Interesting one
I have a $10,000 portfolio- is there much point in investing in dividend stocks? I’m not going to have much returns from it anyway so I’m not sure about it
Depends on age. If your young yes dividend investing will snowball over the years
Don't just buy a stock because it pays a decent dividend though?. It might be a sighn that it doesn't invest enough into its own company and gives all its profits to shares holders, and thats not always a good sighn. You might be better with a good ETF and cost price average if you have time on your side.
The idea is to build it. You won't make much the first year. But if you make 10% you will get $1000, plus if you invest another 5k in that year, the next year you will have 16k and make $1600 in dividends(at 10%). It will go up every year. It will only take a few years and you will be making an extra 5-10k per year in dividends.
No
Read about dividend snowball.
Uss pandal mein mobile carry karne vale ko second most nokia share de do in Russia
What happens to the Berkshire stock when both Charlie and Warren pass away?
The stock will probably tank but the business and the fundamentals of it will live on. Warren has discussed this many times.
They have alot of amazing people behind Berkshire they will always do well
The crypto market is facing a key moment right now, in a very short time it's gonna see a breakout to new record highs. This is a critical moment that every Investor needs to be aware of buying more With the current market trends, Investing in bitcoin now would be a very smart move to make as it's gonna skyrock soon....
He dose not love dividend, it is unefficent and lower the compounded growth.
Get nrgu and nrgd stocks
Large cap companies like Microsoft gives 1% dividend. Better invest in FD
All these real estate fan boys clowning around with bad tenants while their rent is passive income, and he I am sitting back earning as much in dividends.
wow I can now see why they call him a legendary investor, this man is a genius. makes me want to buy coca cola stock.
Me too
He loves them, but hates to pay em'...
Thanks you for gift
Anyone else drooling watching See's Candies being made?
Awesome video
I find it hard to know whether to prioritize high growth or high dividend in a company. I tend to want both though, because cash is King :-)
Does Berkshire Hathaway DRIP their dividends that they earn?
No they take as cash and reinvest it later as they choose.
@@DividendData Thank you man. Wonder how large their positions would be if they DRIP'd their shares of AAPL, KO, etc. Insane.
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose is the result of hard work and hustle over time
Hi bots😘 I love bots😄
Dividend income is good..!but in India dividend income is taxable..!!!🤦...!!ur thought on this?
Dividends are taxes at a lower rate !
Australian company dividends come with a credit for the company tax that has been paid making them virtually tax free.