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[quote=Anonymous]Perhaps the most simple and practical option would be to use your $600k to purchase 4 shares of Berkshire-Hathaway, which sell for about $155k per share.

You'd have the greatest investment manager of all time, Warren Buffett managing your money free of charge. His approach is very similar to mine, but it was me who followed his lead of course.

Like me, Buffett loves dividends which allow you to purchase more shares of stocks which over time leads to compounded wealth. Using this methodology Berkshire collects $1 billion per month in dividends in which they then use to buy more shares or often times entire companies. A few years ago they bought the Burlington-Northern Railroad and earlier this year they bought Heinz.

Ironically, Berkshire which loves collecting dividends from their holdings pays no dividends to their own shareholders. There is a methodology to this approach also. When we as individuals collect dividends, even if we reinvest them we are required to pay about 15% income tax of those proceeds. When Berkshire reinvests their billions of dollars in cash into additional holdings the overall value of the corporation increases, which translates into higher share prices increasing the wealth of their shareholders.  However, their shareholders are not paying income taxes on their newly acquired wealth because it has not been distributed to them in the form of dividends.

I like dividends, but I like Warren Buffett too. [/quote]

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