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by toolz
1435 days ago
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> real profits of the company, either through dividends or buybacks. The majority of my profits in the stock market have been through asset appreciation. Just take S&P500, a very widely invested in fund - the average dividend yield is 4% while the average return is 12% - which means for that very common stock the majority of the profit came from appreciation. This doesn't address buybacks, which is a pointless variable as buybacks are nothing more than "new investments" coming in to buy the exact same stock at a different price. |
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And you can see from the last few months how that's still an inherently risky attitude towards investing. I agree, buybacks are also a questionable scheme that can easily get used to scam, but at least those are (in theory) based on real profits. You're betting that the company is going to grow and create more valuable products and services in the future. In crypto, there's no profits and no value whatsoever. The average dividend yield of a crypto investor is always going to be 0%. You're not betting on anything besides the ability to dump the thing off on someone else.