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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Munger_Disciple ✧  😊 😞
Number: of 15056 
Subject: Re: Reading tea leaves
Date: 08/09/2024 12:09 AM
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In general, I do not like dividends at all. Receiving a dividend is functionally equivalent (from the investor point of view) to selling small amounts of stock periodically to realize income. But dividends don't allow you to time the realization of income, instead the company is deciding when you receive that income. And when the company decides, that complicates your tax planning and timing. Further, dividends can't be balanced against capital losses, while capital gains can be. So in summary, a dividend is far less flexible.

+1

Also, you pay tax on the entire dividend amount as opposed to selling stock where you pay tax only on the capital gain. Much more tax efficient to sell stock with embedded gain in addition to controlling the timing of it.
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