Economics--The mistaken idea of the fund

The wrong idea of the fund

I bought the fund for a long time did not pay dividends, this Skinflint fund should I change it?

Whether a stock dividend or a fund dividend is just an accounting operation, put the money in your left pocket in your right pocket . You originally bought 1000 net worth of 2 Yuan fund, your assets is 2000 yuan, dividends divided 1 yuan, you become holding 2000 funds, each net worth 1 yuan, your assets or 2000 yuan, your wealth did not grow a penny, is a kind of digital game.

And this game is not without cost, to pay the corresponding accounting fees and taxes, the result is dividends will not bring any benefits, but will bring a lot of harm, is not worth the loss of trading! Why Warren Buffett's Berkshire Hathaway shares are more than $200,000 a share, because he has for decades, never used a dividend to reduce the share price, make the price look cheaper and more attractive. Because Buffett is very good at the number of bonus games, knowing it doesn't make any sense.

Economics--The mistaken idea of the fund