i think the business should focus on building the business if it...

i think the business should focus on building the business if it feels like money profits can generate more than a dollar internally than it been paid out, and if your sentiment was true then the likes of say warren buffett who has not paid a single dollar of dividends in his firm but reinvested everything would simply not exist. if the business pays a dividend n the shares inflate from people pretty much wanting to gain dividends n then the choose not to pay it in the next period am guessing the shares deserve to be down even if business results r good ???