Comments on: Warren Buffett Now Works For Me! http://livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/ Join me on my journey to achieve financial independence through dividends, passive income and investments Thu, 11 Mar 2010 17:23:08 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Jason http://livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/comment-page-1/#comment-6931 Jason Sun, 04 May 2008 14:55:19 +0000 http://www.livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/#comment-6931 Is there anyone here who can tell me how Sharbuilder.com works to buy one B-class (BRK-B)? George L Smyth, can you kindly respond to me? Is there anyone here who can tell me how Sharbuilder.com works to buy one B-class (BRK-B)?

George L Smyth, can you kindly respond to me?

]]> By: Michael http://livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/comment-page-1/#comment-6125 Michael Tue, 22 Apr 2008 21:40:40 +0000 http://www.livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/#comment-6125 Are you still planning on going to the Berkshire Meeting next weekend? My dad and I are going. I'm really looking forward to it. I have been a shareholder since early 2007, but have followed Buffett for years. Are you still planning on going to the Berkshire Meeting next weekend? My dad and I are going. I’m really looking forward to it. I have been a shareholder since early 2007, but have followed Buffett for years.

]]> By: Andy http://livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/comment-page-1/#comment-3056 Andy Mon, 11 Feb 2008 02:52:12 +0000 http://www.livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/#comment-3056 On the subject of Class B shares being easier to sell in smaller chunks... if you owned a Class A share and needed a portion of the money, you could convert it to 30 B shares and sell some. From Bershire's website: "Each share of a Class A common stock is convertible at any time, at the holder’s option, into 30 shares of Class B common stock. This conversion privilege does not extend in the opposite direction." On the subject of Class B shares being easier to sell in smaller chunks… if you owned a Class A share and needed a portion of the money, you could convert it to 30 B shares and sell some.

From Bershire’s website:

“Each share of a Class A common stock is convertible at any time, at the holder’s option, into 30 shares of Class B common stock. This conversion privilege does not extend in the opposite direction.”

]]> By: George L Smyth http://livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/comment-page-1/#comment-2675 George L Smyth Thu, 31 Jan 2008 14:29:55 +0000 http://www.livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/#comment-2675 Welcome to the club, I've been able to accumulate a handful of the "B" shares through purchases at Sharebuilder.com, where they allow the purchase of partial shares. For quite some time I made monthly purchases of $400 (at a $4 commission), which is much easier than trying to figure out how to find almost $5k to put down all at once. As far as Warren not being around forever, believe me when I tell you that there are people ready to step in when he steps down. BTW, if you are indeed looking to live off dividends then you may wish to check out DRiPInvesting.org, where you can find a community of people seeking exactly that through dividend reinvestment programs. Welcome to the club, I’ve been able to accumulate a handful of the “B” shares through purchases at Sharebuilder.com, where they allow the purchase of partial shares. For quite some time I made monthly purchases of $400 (at a $4 commission), which is much easier than trying to figure out how to find almost $5k to put down all at once.

As far as Warren not being around forever, believe me when I tell you that there are people ready to step in when he steps down.

BTW, if you are indeed looking to live off dividends then you may wish to check out DRiPInvesting.org, where you can find a community of people seeking exactly that through dividend reinvestment programs.

]]> By: Living Off Dividends http://livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/comment-page-1/#comment-1873 Living Off Dividends Sat, 12 Jan 2008 15:29:22 +0000 http://www.livingoffdividends.com/2007/12/03/warren-buffett-now-works-for-me/#comment-1873 I'd be very careful about BIF. ---READ THIS---- Boulder's big appeal to investors is an 11% yield, which is to be paid monthly. That's an astonishing payout. Investors everywhere are desperately hunting for income. No wonder so many raced to buy. The problem? Sure the fund is sending you a check every month. But it isn't income. They're just sending you back your own money. As Boulder conceded two weeks ago: "Currently the dividend consists mostly of a return of capital to stockholders. A 'return of capital' represents a return of a stockholder's original investment in the Fund's shares, and should not be confused with a dividend yield." Who built this income policy? The Acme corporation? I spoke to Boulder spokeswoman Nicole Murphey to find the reason for this bizarre behavior. She explained that shareholders had voted for this fund's dividend policy a year ago. The reason? Back then, the fund's shares were trading far below their value. So returning capital made sense. The problem is that the plan worked so well that the shares stopped selling for a lot less than they were worth, and started selling for a lot more. Yet here they are, still handing back capital every month. Murphey says the dividends came from income and a return of capital. The proportion of each varied month to month. Right now, she conceded, it was mostly just a return of capital. But it doesn't stop there. In fact, the mind-bending nature of this cartoon only gets revealed in the final act. Because the shares are now so valuable, Boulder announced last month the fund is going to ... sell more of them. It announced a "rights issue," which will allow investors to subscribe for extra shares. Yes, that's right. Boulder is simultaneously handing investors back their cash and asking them ... for more cash. This may be excellent news for Boulder Investment Advisers. They get a fee based on the total assets. But it's hard to see why shareholders would pony up. In fact, it's hard to see why they should hang around in this fund at all. There are cheaper ways to have a laugh. I’d be very careful about BIF.

—READ THIS—-

Boulder’s big appeal to investors is an 11% yield, which is to be paid monthly.

That’s an astonishing payout. Investors everywhere are desperately hunting for income. No wonder so many raced to buy.

The problem?

Sure the fund is sending you a check every month. But it isn’t income. They’re just sending you back your own money.

As Boulder conceded two weeks ago: “Currently the dividend consists mostly of a return of capital to stockholders. A ‘return of capital’ represents a return of a stockholder’s original investment in the Fund’s shares, and should not be confused with a dividend yield.”

Who built this income policy? The Acme corporation?

I spoke to Boulder spokeswoman Nicole Murphey to find the reason for this bizarre behavior. She explained that shareholders had voted for this fund’s dividend policy a year ago.

The reason? Back then, the fund’s shares were trading far below their value. So returning capital made sense.

The problem is that the plan worked so well that the shares stopped selling for a lot less than they were worth, and started selling for a lot more. Yet here they are, still handing back capital every month.

Murphey says the dividends came from income and a return of capital. The proportion of each varied month to month. Right now, she conceded, it was mostly just a return of capital.

But it doesn’t stop there. In fact, the mind-bending nature of this cartoon only gets revealed in the final act.

Because the shares are now so valuable, Boulder announced last month the fund is going to … sell more of them. It announced a “rights issue,” which will allow investors to subscribe for extra shares.

Yes, that’s right. Boulder is simultaneously handing investors back their cash and asking them … for more cash.

This may be excellent news for Boulder Investment Advisers. They get a fee based on the total assets. But it’s hard to see why shareholders would pony up. In fact, it’s hard to see why they should hang around in this fund at all. There are cheaper ways to have a laugh.

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