When I was growing up and first learned about dividends, I thought it was the greatest thing that I had ever heard to be true. "You mean if you own some stock, you can really get paid cash every so often, and potentially live off of it?" No doubt, I was hearing about people who were making thousands in dividends. Wouldn't that be nice? It wasn't until later I learned how much stock you would need to be able to live off of dividends, and even later still did I learn that maybe dividends aren't the greatest thing in the world. … [Read more...] about Dividends or no dividends?
Warren Buffett's Ground Rules by Jeremy Miller is a new book covering Buffett's years before Berkshire Hathaway, when he ran Buffett Partnership Limited ("BPL"). These are years that many of us know very little about, mostly because Warren and Berkshire did not become widely famous until further in his career. Buffett ran the partnership from 1957 - 1969 with astounding results (see table at the end of this post). In these years, he was working with much less money than he is today, and therefore the universe of investment opportunities was much greater to him. Additionally, his investing philosophy was in it's early stages. He was not focused on buying high quality businesses like he is today. Buffett went after very cheap stocks despite their lack of luster, still being sure he was finding opportunities that would give his investors the highest after-tax return over a few short years, and then move onto his next investment ideas. I believe this book is great for any investor out there trying to learn more about business and investing. The wealth of knowledge Buffett extends through his letters, in addition to his candidness and care for his shareholders shows his high intelligence and the integrity he has held throughout his life. … [Read more...] about Warren Buffett’s Ground Rules – A little known era of the world’s greatest investor