http://www.eatonvance.com/alexandria/2843.pdf

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"Experience would confirm the established verdict of the stock market that a dollar of earnings is worth more to the stockholder if paid him in dividends than when carried in surplus."

Graham & Dodd, Security Analysis, First Edition 1934 (as quoted in the white paper)

"Send me my share of the money."

Cliff   2008

I wish I owned a first edition of, "Graham & Dodd, Security Analysis First Edition 1934."

helmut 

"Experience would confirm the established verdict of the stock market that a dollar of earnings is worth more to the stockholder if paid him in dividends than when carried in surplus."

Graham & Dodd, Security Analysis, First Edition 1934 (as quoted in the white paper)

"Send me my share of the money."

Cliff   2008

[/quote]

Many Vanguard Diehards would tell us that dividends are simply a psychological accounting trick.  I can't tell you how many online discussions I've had with some DH's.  It just seems like common sense to me -- grow your dividends from a long-term, successful company.  Dividends make new corporate jets and other largesse less likely, IMHO.

Greg

I wish I owned a first edition of, "Graham & Dodd, Security Analysis First Edition 1934."

helmut 

[/quote]

Here is what I was talking about. 

Book Value 

helmut 

What the heck, go for it Helmut.  You're pretty much in and out of GE now on a daily basis anyway.  Sell off about 60 shares and treat yourself to the book.

Any discussion of Graham & Dodd's "Security Analysis" sure brings up memories from long ago.  In the late 60's I was a young engineer with a little extra money to invest.  Only I didn't know a thing about investing ... nada, zilch.  So, I took a night class in investing at a nearby Jr College.  Our textbook was the 4th edition of "Security Analysis" by Graham and Dodd.

The best part of the class, as I now only dimly remember, was not the book, but the instructor.  He was patient, gave good explanations, and made the class interesting.  Frankly, I remember the book as rather dry.  I suspect, if I were to take it again today, it would likely be a lot more interesting.  Never-the-less, I would not recommend the book for a beginner, at least not without a good instructor.

IMO, the best book written by Ben Graham is "The Intelligent Investor".  It may be the best book on investing ever written, and this is not just my opinion, Warren Buffet agrees with me :-).  BTW, if anyone decides to read "The Intelligent Investor", my recommendation is to obtain an older edition, i.e., any edition except the latest revised edition which is annotated by Jason Zweig.   IMO, Zweig is a devotee of Modern Portfolio Theory and tends to annotate (reinterpret) Graham's book in modern terms (MPT & efficient markets).   IMO, Graham must be rolling over in his grave. 

Regards,
Russ

Cliff,

I think you have it backwards.  Now is the time to sell your collectables and buy more GE!

helmut