Fundamentals are good, page-5

Hi Crazypunter

I make up for the lack of excitement by going in deep. I once dropped $100K (on paper) on a single day on TGA when Mr Market suddenly decided to drop the SP by 20 cents. Needless to say, that was a character-building blip, and the SP recovered, dividends increased, and there was happiness in the land.

Somebody must be reading my posts, because TGA went up today in a sea of red (just kidding). I have heavily invested in TGA and BYL, because they give a good dividend yield, and so I can wait a long time in a negative market if I have not changed my mind on the merits of the underlying business.

My view is that if a company has existed for many years, and it does not pay a dividend, then it may well be a Ponzi scheme. A company should be able to grow at an optimal pace funded by retained profits and still give investors a dividend. When companies hold on to profits, they often do something stupid with the money.