Why Warren Buffett Does Not Like Dividends

Do you agree that dividends should be reinvested into a company rather than paid out to shareholders? Let me know what you guys think in the comment section below.

[plekzagenuno]

I bet he doesn’t mind the millions in dividends he gets from Coca-Cola every quarter!

[theconsciousmovement]

I bet he keeps the dividends to himself

[dsanti]

In 2018 Berkshire Hathaway was paid $3.8 Billion dolllars In dividends . Warren buffet believes that he can better allocate those dividends then you. He is not against dividends . His company operates off of them ! 😉

[SagaranMike]

Dividends are taxed up to 30%. So it depends on the investor to choose.

[jonathantran]

Summary: Warren Buffett doesn't pay dividends because he believes that if he gave you a dividend, he could've turned it into more money if he kept it. (exp: For every dollar he gives you, he could've made 2 dollars). If he kept the money, it would boost the company's share price and therefore, you'd still make the dividend amount if not more if he grows it.

[BTsNemesis]

BH isn't exactly a company, as it is a holding. A holding serves the solely purpose to invest money to generate earnings. Giving money to shareholders would undercut this purpose magnificently. A normal company that sits in a sector with a rather limited growth does nothing wrong with giving out a dividend.

[tlowensjr]

What good is your wealth if you are not generating a cash flow. A well established company which is sitting on a large sums of money should pay a decent payout to the shareholders or the shareholders should nominate a new board of directors.

[Bomthebom]

This video and most of the comments reminds me of Wolf of Wall Street.Particularly the conversation between Leo and Matthew.
Fugazi and Cold hard cash.lol

[JT-koib]

The graph at the end doesn't matter. It's up to each individual investor to determine which method works best for them. If an investor gets dividends to a tax free account, the difference in the lines ends up with them.

As for the video title, Why Warren Buffett Does Not Like Dividends, that's good clickbait. Buffett's on about how he uses dividends as a company owner, not as someone who's investing (in this instance).

[BjorckBengt]

If a company is paying dividends it is because management don't know how to use the money for growth. It could be because they have reached the peak of what is possible in their business or because management don't understand growth opportunities. A company keeping the money and investing it wisely is more attractive to me while it seems like people in general react negatively. The same thing is valid even before the company is profitable. If they spend more than they earn it is no problem as long as they have good gross margins and are growing fast. Building new factories doesn't come for free.

[notalk]

Why he always sounds like he sucking on mints or got mints under his tongue? Reminds me of that spongebob pickle episode

[enjoythedreamlife]

This is NOT what Buffett says about Dividends. IF a companies does not have a way to put that capital to work to grow that business it is best to distribute the Dividends. Berkshire receives TONS of Free cash Flow from Companies. How do you think he deploys the money he receives in Dividends to buy more of the stock or other great businesses. You did not catch that

[eugeneflanagan]

the investment is only worth it when you sell it. up on till then your making nothing.

[Jbank]

The reason companies do not pay dividends: Greed

[DaimAngel]

The real question is who has the right to decide on what to do with the profits? A portion of the profits should be reinvested back into the business in order to fund its growth and innovation. No doubt there. But a portion should also go the shareholders. The way I see it, if you invest in Mr. Buffet's company, as a shareholder, you don't have a say. Whereas, companies that pay out dividends, give their shareholders the autonomy to manage their dividend income.

[TheRealBatCave]

Lol he fuckin loves dividend stocks just look at his portfolio, how old is this interview all hes saying here is we take the dividends we would be giving u and reinvest them istead of giving it to u for you to decide what u want to do with with this money lol.

[chrisdsx]

Companies can make mistakes with the money they hoard too... So I wouldn't presume it's just up up all the time. Disruption can ruin establishment. These guys produce nothing, I don't trust them at all.

[akeemak]

I know a lidy who invested 250, 000 and gets back only 1, 000 a She could have started her own bizz and brought in 40, 000 a Dividend = looser