this post was submitted on 27 Jan 2025
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TBH, most of investors are buying stocks not because they expect dividends, but because they plan to sell them later for more.
It's the same thing. The value of any given stock has to do with the perceived future value of the stock. The perceived future value of the stock has to do with the ability of a company to profitably grow. No one invests in startups expecting dividends, but if the startup cannot demonstrate monopoly potential, it's very difficult to get investment.
No, there is a difference between buying stock for dividends and buying stock exclusively to sell it to a bigger rube Bitcoin-style.
There's plenty of theorists who argue otherwise. Profit distribution represents value that have nowhere else to grow, whereas as stock value growth represents money deployed to growth that otherwise could have been distributed. In the end, it's value capture.
There's plenty of theorists who argue otherwise. Profit distribution represents value that have nowhere else to grow, whereas as stock value growth represents money deployed to growth that otherwise could have been distributed. In the end, it's value capture.