Investors of all stripes are saying they don’t understand why the market is going up with everything that’s happening.
What they’re really saying is they’re having a hard time accepting equity isn’t a store of value.
It’s a metric disconnected from reality.
— 👤 (@akamaozu) April 18, 2020
Equity is only as good as the underlying cash stream.
Nobody invests in yield-less equities. They gamble.
They bet the equity is worth more than they paid for it.
Bitcoin.
— 👤 (@akamaozu) April 18, 2020
So many investors solely focus on equity gains and growth rates, yet equity is extremely volatile.
Why is there so little emphasis on taking risk off the table via dividends?
Berkshire not paying one is reflective of the investor types they cater to. They really love dividends. pic.twitter.com/cHC6ZyCR3A
— 👤 (@akamaozu) April 18, 2020
Long dividends.