The Intelligent Investor - The Definitive Book On Value Investing

CHAPTER 19 Shareholders and Managements: Dividend Policy Ever since 1934 we have argued in our writings for a more intelli- gent ...

ments produce poor market prices. The low market prices, in turn, attract the attention of companies interested in diversifying ...

rant further space in this book. Those individual shareholders who have enough gumption to make their presence felt at annual me ...

its in the business where such retention could be counted on to produce a goodly increase in earnings. But there were several st ...

at all,and sold at 2,000! This unusual issue later declined to 795 in 1962, when it earned $49.50 and paid $7.50.* Investment se ...

requiring the companies showing slower growth to be more liberal with their cash dividends. For these are generally the less pro ...

would be more acceptable to old and new shareholders. A stock split may be carried out by what technically may be called a stock ...

declaring any kind of stock dividend they please—e.g., one of 10%, not related to recent earnings—and these instances maintain a ...

ownership interest now embodied in his 105 shares. Nonetheless, the change of form is actually one of real importance and value ...

change be made by the public utilities, despite its adverse effect on the U.S. Treasury, because we are convinced that it is com ...

COMMENTARY ON CHAPTER 19 The most dangerous untruths are truths slightly distorted. —G. C. Lichtenberg WHY DID GRAHAM THROW IN T ...

the shareholders are a complete washout. As a class they show nei- ther intelligence nor alertness. They vote in sheeplike fashi ...

THE INTELLIGENT OWNER Today’s investors have forgotten Graham’s message. They put most of their effort into buying a stock, a li ...

500 Commentary on Chapter 19 THE ENRON END-RUN Back in 1999, Enron Corp. ranked seventh on the Fortune 500 list of America’s top ...

Commentary on Chapter 19 501 What does this arrangement say about the judgment of the directors who approved it? (It says you s ...

to being an intelligent investor as following the news and voting your conscience is to being a good citizen. It doesn’t matter ...

the company’s cash. Graham saw right through this managerial malarkey: A company’s management may run the business well and yet ...

the percentage of companies paying dividends (shown in the dark area) has withered away: 504 Commentary on Chapter 19 FIGURE 19- ...

2000 after launching goofy ventures into groceries and gasoline, while Amazon.com destroyed at least $233 million of its shareho ...

don’t know how to turn excess cash into extra returns. What does the statistical evidence tell us? Research by money managers R ...