Posts about investing.

⚙️ Case 2

Meta invents React.

A framework for JavaScript. Basically, a much more convenient way to write code for the web. An abstraction layer that makes developers faster and more productive.

All great.

The problem?

⚙️ Case 3

In the software world, there's a basic tool every programmer uses: Git

It tracks changes to code over time and lets thousands of engineers work at once without getting in each other's way.

So far, so normal.

The problem?

Meta's culture is this:

Solve *the fundamental problem* without wrecking the development experience for its engineers.

Instead of taking detours. Instead of patching things. Instead of saying “well, that's just how it is.”

1. Are dividends deducted from the share price? 📉

> “Dividends don’t affect the share price.”

I’ve heard this a thousand times and IT’S FALSE.

Dividends DO affect the price.

2) “Dividend-paying stocks do better in the market” 📈

People often confuse causation here. They assume:

“Paying dividends causes good stock market performance.”

This is NOT true (at least not entirely).

3) “Most of the S&P 500’s returns come from reinvested dividends”

This may be true for certain periods, but it is NOT an argument for dividend investing.

The key nuance here is to consider the counterfactual.

4) “A high yield (>7%) is easy and desirable”

This claim is incredibly dangerous if you don’t talk about the risks.

It’s worth highlighting the risk of yield traps. Companies with high dividends, but at the expense of a deteriorating business or future dividends.

5) “Buffett is pro-dividends”

Buffett isn’t “pro” or “anti” dividends per se; it depends on the reinvestment opportunity.

If the company can reinvest at high returns, it’s better to retain capital or buy back shares (if the price is right). If not, pay dividends.