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 Replies: 24 / Views: 936 |
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Valued Member
United States
87 Posts |
Quote:
I have individual stocks that have done well and don't pay dividends at all such as Berkshire Hathaway B shares No dividends are really an enormous deal when it comes to compounding and you just cited perhaps the perfect example of a holding company that has proven it in spades. Buffett has talked at length about it. BRK never paid a dividend to shareholders but absolutely did do buybacks instead and largely because WB knew his talent as a capital manager would result in better return on equity for shareholders than a cash dividend, but his KO holdings did a lot of heavy dividend lifting for the past 40 years. AI did some napkin math but if you put 10k into gold, 10k in KO stock set to DRIP and 10k in nice uncirculated 1909 SVDB Lincoln Cents in 1986, here's the outcome. Quote:
Final Tally (all three $10k investments from 1986, with dividends/positions reinvested):
Gold $10,000 $120,413 12x
Coca-Cola (DRIP) $10,000 $330,000-$410,000 33-41x
1909-S VDB coins $10,000 $19,200-$24,500 1.9-2.5x
Coca-Cola crushes both by 10-20x. Gold beats coins 5-6x. Rare coins are a terrible pure capital appreciation play vs equities—they're hobbyist holdings with numismatic, not financial, payoff. That's not cherry-picking timelines or examples. |
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Pillar of the Community
 United States
5273 Posts |
Just make sure the dividends are "qualified" (i.e., from stocks you are holding a long time). That triggers the long-term capital gains tax instead of the short-term capital gains tax.
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Pillar of the Community
United States
2323 Posts |
You'd want to mention stocks like Coca Cola that have done great compared to gold. I could point to companies that went backrupt, their stock crashed to almost nothing like Enron and others or investment Ponzi scams like Bernie Madoff, investors lost their money. Some brokers/financial planners have turned bad and stole client's funds. After the Great Depression it took over 20 years for the stock market to recover.
There's risk with every asset. Someone could break into my safety deposit box and steal my gold/silver. My bother got scammed out of about $20,000 in bitcoin.
Very rare coins have sold for millions of dollars outperforming stocks.
We all have a right to our opinions. I like me some gold/silver and won't change that.
Edited by livingwater
Yesterday 1:13 pm
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Pillar of the Community
United States
6869 Posts |
I would argue that the numismatic returns require a high level of knowledge and some luck besides. Dollar cost averaging into index funds with reinvestment can be done by essentially anyone with minimal learning required.
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Pillar of the Community
United States
2323 Posts |
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Valued Member
United States
87 Posts |
Quote:
You'd want to mention stocks like Coca Cola that have done great compared to gold. I could point to companies that went backrupt, their stock crashed to almost nothing like Enron and others or investment Ponzi scams like Bernie Madoff, investors lost their money. Some brokers/financial planners have turned bad and stole client's funds. After the Great Depression it took over 20 years for the stock market to recover.
There's risk with every asset. Someone could break into my safety deposit box and steal my gold/silver. My bother got scammed out of about $20,000 in bitcoin.
Very rare coins have sold for millions of dollars outperforming stocks.
We all have a right to our opinions. I like me some gold/silver and won't change that. The whole point was picking a stock that 'everyone understands and anyone could pick'. Walmart, Costco, Visa all would be like examples. Or, an index funds. We agree that the elite levels of collector markets have outperformed equities, but let's assume nobody here is swimming in those waters (or if any are, they needn't be concerned with advice from the likes of us) The point is, numismatics have very provably been a terrible 'investment' compared to very ordinary investment vehicles that require little if any expertise to navigate and doesn't require extreme outlier levels of income to engage. On a long enough timeline, gold has done its job well and is definitely having quite a run right now, but to date still woefully underperforms ordinary indexing or DRIP investing in the aristocrats. None of this is even arguable so 'wuddabout Enron and how's about a 1913 V Nickle' isn't a particularly sharp counterpoint to it  |
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Pillar of the Community
United States
2323 Posts |
Enron and other company bankruptcies are reality. Stocks crashing down happens. I recall 2008 when the market tanked. People who had to sell stocks then for whatever reason like minimum distribution lost money. That's why when buying stocks financial institutions warn people they are an investment risk and not covered by FDIC.
I am aware stocks/mutual funds are almost always better to own than gold/silver in the long run, but it can depend on the markets, when you buy/sell. Some of us still want some gold/silver as part of our assets. I enjoy them a lot. I am willing to give up some stock appreciation for the joy in owning some gold/silver. As I said earlier, so far my gold/silver have appreciated nicely.
My and my wife's financial advisor is very good. He charges lower than average commission fees. High commission fees can hurt gains. He knows about my gold/silver and agrees it's good to have some. Those who don't want to own any gold/silver, fine with me.
I think it's time for me to end this conversation, getting too far away from what the OP asked.
Edited by livingwater
Today 4H 50M ago
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Pillar of the Community
United States
6869 Posts |
I think there is still a valid question posed here. If you were going to invest in coins for long term returns, what would you select and why? Several folks here have accomplished that successfully for significant sums of money.
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Pillar of the Community
United States
681 Posts |
My recommendation would be to promote the hobby. The value of coins in the future is going to depend on the health of the hobby. More collectors, more young collectors in particular, will stimulate interest in all kinds of coins and enable the value of many coins to increase in the future. A healthy hobby, ultimately will allow for a sustained investment value.
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Replies: 24 / Views: 936 |
First Page
Posted 09/04/2026 5:41 pm
