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Cake day: July 6th, 2023

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  • ammonium@lemmy.worldtoMicroblog Memes@lemmy.worldLine go up
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    17 days ago

    There are plenty of companies that never pay dividends, yet people buy them.

    II struggled with this as well for a while. You can look at it this way, they are worth money because they could pay dividends, but they don’t actually have to. Your bar of gold is worth a certain amount of money equal to the money you could sell it for, and your money is worth something because you could buy something with it.


  • ammonium@lemmy.worldtoMicroblog Memes@lemmy.worldLine go up
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    17 days ago

    Because that’s how the stock market works, the price of a stock is the current value of assets (including cash) + expected earnings (with some correction factors for risk and time). If the company pays out $x of cash it’s $x worth less. You might not always see it it the stock price because expected future dividend payments are also already priced in.

    How do you think it works?


  • ammonium@lemmy.worldtoMicroblog Memes@lemmy.worldLine go up
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    18 days ago

    Imagine you have 10 stocks worth $10 each.

    Scenario 1: There is $1 dividend per stock. You now have 10 stocks worth $9 each for a total of $90 in stocks and $10 in cash.

    Scenario 2: There is no dividend but you decide to sell 1 stock, you now have 9 stocks of $10 for a total of 90$ in stocks and $10 in cash.

    These scenario’s are equivalent unless the stock wasn’t priced correctly.













  • From which size is a country too big to operate as a single country? I think cultural identity is much more important than size, and the Chinese government has put a tremendous effort in culturally unifying the land with great success (and great cost; see Xinjiang, Tibet, Hong Kong, the relationship with Taiwan, loss of local languages and culture). I don’t see that disappearing anytime soon.

    A civil war with a stalemate is of course possible (in fact it’s already the reality), but an USSR style collapse in many different countries is just not something I can see happen.


  • I’m the first one to hate on the CCP, but people have been saying that China is going to collapse anytime now for 20 years.

    The demographics are a real problem, but nothing that will cause an immediate collapse. Housing, youth unemployment and inequality are real imminent issues, but the CCP has survived much worse and I think they will survive this as well.

    Economical they have made some good bets, investing in solar and batteries, for that alone we should hope they don’t collapse, it would be a setback of several years or maybe decades.

    I believe China will more go the way of Japan, stagnate but not collapse.