EWJWNNMSG t1_j200lup wrote on December 28, 2022 at 5:50 PM

Reply to comment by hoopaholik91 in The best part in movies is when the actor casually walks away from something they just blew up by Technical_Staff6949

Tesla at the height of february 2020 before the first corona dip, split adjusted: Between 40 to 60€. Tesla at its height 2021: €350. That's almost 600% (well an increase of 500% of course) if you take the absolut height from 60 to 350.

It's almost comical.

But you are correct, that's only Tesla. Companies like Apple or Amazon only doubled during the same time period.

Doubled.

Carvana went from 87 pre pandemic to 315 at its hight in 2021, almost 400% lol.

Apple is now so oversold it has a comical dividend yield of about 0.7%, Microsoft is at like 1%. That is comically low. How much do you all expect this company to grow? How many dividends do they have to pay out to justify this price? It's laughable.

Edit: Most likely most of you don't even want dividends. That makes me laugh even harder then what the fuck are you paying for if not for the company to transfer its earnings to you

gumbo_chops t1_j207fbv wrote on December 28, 2022 at 6:35 PM

Most people here don't care about dividends since they aren't retiring anytime soon and don't need to rely on them as a source of income. Personally I would rather a company buyback shares than pay a dividend s to avoid taxes in non retirement accounts.

EWJWNNMSG t1_j2092bs wrote on December 28, 2022 at 6:46 PM

It's the classic question: Do you want to make money through the company, then dividends are unavoidable. Or do you want to make money through the other market participants - then buybacks can increase the amount that other people have to pay for your share. Let's say the company buys back 10% of the shares that are out there then I am willing to say that they contribute about 10% of the value that another person has to pay you for it.

In the name of tax avoidance we have now created a range of companies that do not pay dividends, which has always been the way. But what is a alphabet share? What does it do? What is its relation to the company? What is the value of it if not the sum of future dividends, their growth in relation to inflation and discounted the further away they are in time?

For me a share is a machine that I have to pay for that then pays me money every year. I pay €10, and then get 1 + 1.1 + 1.2 + 1.3 etc. From this value I create a value I am willing to pay for this share.

What are you willing to pay for a Amazon share if not that? What is the value of it? What do you get from Amazon that makes you want to buy this share?