Jun 8, 2015

Is there a difference in the amount of wealth that can be created by reinvesting dividends versus spending dividends?  Yes, and it is substantial--IF--you give it 20 to 50 years.  Steve and Sinclair break down and analyze the outcomes of two investors who bought Coca Cola in 1962 to 1965 when Coke was trading at $80 a share with $10,000.  One of the investors spent all dividends. The other reinvested dividends. Who came out better? You will want to review the difference from several points of view in both the Getting Smart segment and the Q & A session.