Thread regarding AT&T layoffs

AT&T stock is not a wise investment

Warren Buffet was a major holder of Direct TV stock. Then our good friend Randall came along and offered Mr. Buffet and all the shareholders of DTV a huge premium, paid in AT&T stock, over the market value of their DTV shares (Randy just loves to over pay for his acquisitions after all).

Of course, Warren gladly took Randall's money. But then, the first thing he did the next day was dump all his newly acquired AT&T stock.

If the greatest investor in the history of capitalism won't touch this stock, is it really a wise investment? Do you want to be on the side of the smart money or do you want to follow the dumb money crowing about their high dividend yield? Large capitalization companies with a dividend this high are usually a red flag.

Excellent point, @ZCeIMGU-cgq.

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| 1194 views | | 5 replies (last June 28, 2019) | Reply
Post ID: @OP+ZFkdYbc

5 replies (most recent on top)

Buffett didn't dump right after he held and even bought for a year before he exited his positions. ATT is a solid 6% yield on investment through the dividend alone. If the stock performs well you will make even more. Its not a bad stock there are just others that are better but come with more risk.

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Post ID: @7lyb+ZFkdYbc

To take investment advice from a wire puller or a paper shuffler is ignorant! I know profits at T will soar as soon as they cut out all the deadwood. So buy whatever stock you want but T is about to increase profits, pay down debt , and continue to pay out a dividend of 6% or more. Or you could buy stock in one of those weed companies. Keep on smoking.....

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Post ID: @3xqt+ZFkdYbc

To the OP I would say this, you obviously know the name Warren Buffett but you don’t know the legend of the man.

Anyone, except perhaps you, knows that Buffett’s calling card was always owning "undervalued" stocks. He got what he wanted in DTV, and the only other competition was Dish Network.....he discarded AT&T saying that there was nothing wrong with the stock, it was just not consistent with his investment style....he put his money to other ventures.

Mark Twain said, "Get your facts first, then you can distort them as much as you please." Seems you failed the first part of that test, but succeeded with the second!

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Post ID: @dsg+ZFkdYbc

Ideas-

$BRKB does not pay dividends

S&P500 or total US Market ETFs like $SPY $VTI $ITOT do pay dividends that can be set to automatically reinvest.

Since 2008/2009 the $BRKB price has pretty much matched these others The comparisons will vary depending on the historical timeframes.

True, it could possibly significantly outperform but also underperform from time to time.

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Post ID: @rub+ZFkdYbc

I agree with Warren Buffet and have been dumped all of my T shares and reinvested it in Berkshire Hathaway. The returns are so much better.

Now looking to cash out my retirement plan as well before T has to file for bankruptcy in the near future.

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Post ID: @zgq+ZFkdYbc

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