Amen.
We've held BRKB for over 25 years. I was pondering selling it off as part of our ongoing migration to all index funds -except for 5 or fewer individual equities - but have decided for now to make it one of the "5". If they change philosophies on dividends, I'll probably sell it at that point. Meanwhile, I think it remains good diversification in turbulent market waters.
Ironically Apple with a very low dividend, is one of the top historical investments Berkshire has made. That's another one of the "5" we are keeping after decades of holding/adding to it.
Both of these growth plays are sitting out there in long term taxable or Roth accounts that will probably be passed on to heirs vs used.
As eluded to by Rob Thompson above, a blend of growth and dividends is wise - too much of anything is potentially hazardous to your wealth long term.
"I bet if the dividend was cut the stock price would significantly drop, not increase" .....In the case of a utility stock of course it would drop as utility stocks don't have much else going for them as an investment vs the broader market other than dividends.
Thanks Michael, I was trying to take a middle ground but it got way too wordy. I edited it down to basically the first and last paragraph.
I have always liked the saying "too much of anything is ineffective".
I usually stick to that in virtually all things (not just investing).
I appreciate the nudge.
Lots of exchange of views in the comments on this topic. I would suggest there is no “wrong” or “right” answer to the question on how to employ dividends. Like all aspects of the investment universe, it’s all about using various tools in various ways to accomplish what you are setting out to do in any given time period/stage of life. Everyone chooses their own investment “lane and speeds” at various times during their journey. The key is to “get on the road and stay on the road” to retirement savings as early as possible in life. For younger readers, my suggestion is focus on growth, not dividends when building your wealth and retirement portfolios.
Thanks for another nice read over morning coffee, Mark.
Reading this took me back to the early 1970's when the oil embargo contributed to heating oil prices skyrocketing and the availability of the oil spotty at times in New England. The wood stove in our house became the primary source of heat during that time and for years after the crisis had abated. We were blessed with virtually unlimited access to firewood on the property and adjoining properties. I have great memories of both sitting in front of the stove (sometimes open like a fireplace or closed to run for hours on a armload of wood) and of the many hours working in the woods with my dad cutting, splitting and stacking wood for the coming seasons.
Well done Rick.
While the IRA /401K spectrum is no less complicated with both Traditional and Roth, it is always nice to have multiple "tools in the tool box". Your hands on approach and sharing of your experience based insights set a good example for younger readers in particular. That's important since we were among the first cohort to wield these tools en masse and we all had our share of success and errors along the way. Helping those who follow in learning how to pick up the right tool at various times in their financial lives while considering both shorter and long term horizons pays big dividends....literally. Again, well done.
XOM had been on my sell list for a couple years as part of my ongoing effort to whittle our individual equity holdings down to just a handful of stocks. This is all part of the long term and nearly completed goal of being (almost) purely invested in low cost index funds. The rise in XOM's price this year offered a reasonably nice exit to an otherwise mundane holding.
I sympathize. I could not do it any more and moved out of the poorly run state I was in some years ago. Just in time as it worked out...as it has since entered the fiscal proximity of Illinois and N.J.
I sat next to a person on a flight not long ago out of O'Hare who was moving from Illinois after over 50 years there and was on his last flight out. He was in a very jovial mood. He quipped that it might be easier for private sector employees/tax payers in poorly run states to just adopt a state worker family and pay part of their retirement etc.directly. He added "at least I might have gotten a Christmas card and invited to dinner once in awhile after I sent them a check each month." :)
We are in complete agreement that folks in those positions should receive Social Security.
In the event my spouse and I ever are eligible at ages 67 and 70 respectively to receive S.S.; every dollar will be donated to Veterans' and First Responder related causes.
BTW: Thank you for your service. I had a solemn stroll along the traveling Vietnam Memorial Wall recently and have visited the one in D.C. twice. It brings me to tears every time.
Comments
Amen. We've held BRKB for over 25 years. I was pondering selling it off as part of our ongoing migration to all index funds -except for 5 or fewer individual equities - but have decided for now to make it one of the "5". If they change philosophies on dividends, I'll probably sell it at that point. Meanwhile, I think it remains good diversification in turbulent market waters. Ironically Apple with a very low dividend, is one of the top historical investments Berkshire has made. That's another one of the "5" we are keeping after decades of holding/adding to it. Both of these growth plays are sitting out there in long term taxable or Roth accounts that will probably be passed on to heirs vs used. As eluded to by Rob Thompson above, a blend of growth and dividends is wise - too much of anything is potentially hazardous to your wealth long term.
Post: I will still take the dividends
Link to comment from September 19, 2026
"I bet if the dividend was cut the stock price would significantly drop, not increase" .....In the case of a utility stock of course it would drop as utility stocks don't have much else going for them as an investment vs the broader market other than dividends.
Post: I will still take the dividends
Link to comment from September 16, 2026
Thanks Michael, I was trying to take a middle ground but it got way too wordy. I edited it down to basically the first and last paragraph. I have always liked the saying "too much of anything is ineffective". I usually stick to that in virtually all things (not just investing). I appreciate the nudge.
Post: I will still take the dividends
Link to comment from September 15, 2026
Lots of exchange of views in the comments on this topic. I would suggest there is no “wrong” or “right” answer to the question on how to employ dividends. Like all aspects of the investment universe, it’s all about using various tools in various ways to accomplish what you are setting out to do in any given time period/stage of life. Everyone chooses their own investment “lane and speeds” at various times during their journey. The key is to “get on the road and stay on the road” to retirement savings as early as possible in life. For younger readers, my suggestion is focus on growth, not dividends when building your wealth and retirement portfolios.
Post: I will still take the dividends
Link to comment from September 14, 2026
Thanks for another nice read over morning coffee, Mark. Reading this took me back to the early 1970's when the oil embargo contributed to heating oil prices skyrocketing and the availability of the oil spotty at times in New England. The wood stove in our house became the primary source of heat during that time and for years after the crisis had abated. We were blessed with virtually unlimited access to firewood on the property and adjoining properties. I have great memories of both sitting in front of the stove (sometimes open like a fireplace or closed to run for hours on a armload of wood) and of the many hours working in the woods with my dad cutting, splitting and stacking wood for the coming seasons.
Post: Bad Maths, Good Fire.
Link to comment from August 29, 2026
Well done Rick. While the IRA /401K spectrum is no less complicated with both Traditional and Roth, it is always nice to have multiple "tools in the tool box". Your hands on approach and sharing of your experience based insights set a good example for younger readers in particular. That's important since we were among the first cohort to wield these tools en masse and we all had our share of success and errors along the way. Helping those who follow in learning how to pick up the right tool at various times in their financial lives while considering both shorter and long term horizons pays big dividends....literally. Again, well done.
Post: Traditional or Roth
Link to comment from August 29, 2026
XOM had been on my sell list for a couple years as part of my ongoing effort to whittle our individual equity holdings down to just a handful of stocks. This is all part of the long term and nearly completed goal of being (almost) purely invested in low cost index funds. The rise in XOM's price this year offered a reasonably nice exit to an otherwise mundane holding.
Post: Blood Money
Link to comment from August 27, 2026
This would be a great posting on a web site with the name “HaughtyDollar”.
Post: Americans and their credit cards
Link to comment from August 25, 2026
I sympathize. I could not do it any more and moved out of the poorly run state I was in some years ago. Just in time as it worked out...as it has since entered the fiscal proximity of Illinois and N.J. I sat next to a person on a flight not long ago out of O'Hare who was moving from Illinois after over 50 years there and was on his last flight out. He was in a very jovial mood. He quipped that it might be easier for private sector employees/tax payers in poorly run states to just adopt a state worker family and pay part of their retirement etc.directly. He added "at least I might have gotten a Christmas card and invited to dinner once in awhile after I sent them a check each month." :)
Post: The Federal Debt and Social Security Payments
Link to comment from August 20, 2026
We are in complete agreement that folks in those positions should receive Social Security. In the event my spouse and I ever are eligible at ages 67 and 70 respectively to receive S.S.; every dollar will be donated to Veterans' and First Responder related causes. BTW: Thank you for your service. I had a solemn stroll along the traveling Vietnam Memorial Wall recently and have visited the one in D.C. twice. It brings me to tears every time.
Post: Income taxes on retirees with Social Security
Link to comment from August 19, 2026