Berkshire Inclusion to Erase All the Dividend Gains in the S&P 500

I was looking at the dividend history of the S&P 500 and I came across this recent story. Companies in the S&P 500 have been increasing their dividend payments recently, but the entire gain will be erased by the inclusion of Berkshire Hathaway in the S&P 500. This is interesting for a few reasons. Even though value weighted indexes are, in my opinion, much better than price weighted indexes, they’re open to statistical noise as well. Also, lots of historical market data, even when accurate, is open to interpretation.

Posted by on March 2nd, 2010 at 1:54 pm


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