Quote:
Originally Posted by Straight6Dave
BMWYY is a dividend stock so you can't just look at share price to understand how the company is doing. In the last 10 years that dividend has been between 4.5% and nearly 10%.
I swear TSLA has broken people's brains.
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Wow dave, you really got triggered over that, and then pulled $TSLA out of nowhere for some reason!
(Tesla is the top brand in World thanks to just this kind of attention!)
(1.) I said "one could argue"
(2.) I didn't mention Tesla
(3.) The post wasn't exactly meant to attract investors to my hedge fund
Your assholery aside, you do make a great point ... in isolation. Just for fun let's spitball it out:
* Let's assume a 7% BMW yearly dividend, a flat share price (since it is), & ignore inflation
* Over that 16 years, if you reinvested dividend income, that's
~195% return - pretty good!
* But, of course, BMW comes with some idiosyncratic risk ... so what if you'd invested in something more indexy to spread the risk like Vanguard's Growth index, $VUG?
Well, $VUG's returned ~360% over that similar time period (quick look just for fun, $VUG is ~485% over the last 10 years & $VTI - total stock market - is ~365%
So, sure, BMW investors have done well - that's true! - but it's also true BMW investors would've been better off putting their money in a lower risk Vanguard index fund which has ( and had) much lower risk, i.e., not the idiosyncratic risk of just BMW.
Anyway,
one could argue , it's not $TSLA that's broken people's minds, rather Vanguard's index funds did
