On Apr 13, 2008, at 8:59 AM, Doug Henwood wrote:
>
> On Apr 12, 2008, at 10:16 PM, Shane Mage wrote:
>
>> For me,
>> "investing" is purchasing with the expectation of an income steam
>
> Yes, that's the standard distinction from speculation. But do you
> really think that Buffett made most of his nut on dividend payments?
What I wrote was "For me, 'investing' is purchasing with the expectation of an income steam *(capitalised or consumed)*... " Buffet's whole point is that when he buys a stock he evaluates it as if he was buying the whole company, which he also sometimes does (e.g. Gillette). "Capitalised" income is income retained *by the corporation* for reinvestment. Dividends are at best irrelevant, often negative, factors (how long did it take for IBM to pay its first dividend?).
Shane Mage
"Thunderbolt steers all things...it consents and does not consent to be called Zeus."
Herakleitos of Ephesos