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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: robm   😊 😞
Number: of 12790 
Subject: Re: Dividends
Date: 02/08/2024 2:53 PM
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Jim wrote up-thread: My suggestion was: each year to sell 4% of the number of shares you still own that year. The number of shares sold each year falls on a precisely predictable schedule.

I would phrase this as selling 4% of each position you own each year. Whether you choose to measure 4% in share count or current market value at the time of sale, it works out to the same thing, right?

Say I own 1,000 shares of BRK-B. Market price is $398, so I have $398,000 of BRK-B.

I can sell 4% of the shares, which is 40 shares.

Or I can sell 4% of the market value, which is $15,920.

Either way I choose to think about it, the result is the same: I'll raise $15,920 in cash, and will have 960 shares left.
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