(25-12-2013, 08:28 PM)d.o.g. Wrote: Look at Berkshire Hathaway - it has compounded at 20% for decades. But the companies within Berkshire did not compound at that rate. Instead they all generated cash that was sent to Warren Buffett to reinvest. He used that money to buy other businesses which sent him more cash, and so on.
Anyone hoping to emulate Buffett should study what he does - and what he does is buy dividend-paying companies.
Agree with you but just for laughs:
To emulate Buffett, I screened for dividend stocks. To avoid missing out a potential BH, I do not avoid non-dividend-paying stocks.