Tobin Hanspal

Associate Professor, Finance @wu_vienna

[Tobin Hanspal @tobinbridge]

@Ingar30 I mean it's better than outlook and anything on a windows pc, but yeah it also sucks

[Tobin Hanspal @tobinbridge]

@TheStalwart But still bookmarked for teaching slides!

[Tobin Hanspal @tobinbridge]

@TheStalwart Would love to see this across the wealth distribution over time, eg for the 25th pct, median, top wealth households from 2000, 2010, 2020, now.

[Meb Faber @MebFaber]

We did a survey on how dividends work and received thousands of responses...

Q: "Which of the following best describes how dividends work for a stock investor?"

A1: "A stock yields 5%. The stock is trading at $100 and pays a $5 cash dividend. After distribution, the investor now has a stock worth $95 and a $5 cash dividend."

A2: "A stock yields 5%. The stock is trading at $100 and pays a $5 cash dividend. After distribution, the investor now has a stock worth $100 and a $5 cash dividend."

The good news? Meb's audience (mostly) gets its.

90% of pros understand how dividends work, and 80% of individuals. 👏

HOWEVER, for the broad-based audience, the results are DISMAL.

60% of pros understand how dividends work (despite 90% rating their knowledge at "average to very good")...

Only 25% of individuals understand how dividends work.

You read that right, 75% of individuals think that dividends are free money paid out like an allowance or bonus...

This agrees with my experience over the last 20 years.

Most individuals, and a non-trivial number of professionals, do not understand the most basic input in all of investing!

This explains everything from the irrational preference for dividends to predatory offerings focused on paying out magically high dividends to hope and dreams of passive income.

We will publish a longer paper on this soon, but in the meantime, stay tuned for a great podcast on the topic dropping shortly!

[Tobin Hanspal @tobinbridge]

@MebFaber Great! Not surprising. We have new academic work on the topic as well. We explained the benefits of dividend reinvestment and costs of misperceiving dividends as free income to real investors, it shifted reinvestment to equity:
https://t.co/ZAqOwRuzkz
or
https://t.co/SMVGoGwAEH

[Tobin Hanspal @tobinbridge]

@maiab I guess this is bait, but kid loosing a scoop isn't going without ice cream on my watch

[Tobin Hanspal @tobinbridge]

@MrDavidAngelo Actually a good comparison

[Tobin Hanspal @tobinbridge]

@TheSpeculator0 @BachmannRudi My hotel last night was too cold and I actually had to open the window to warm it up a bit

[Tobin Hanspal @tobinbridge]

@florianederer This seems to be the main driver of the AC divide

[Tobin Hanspal @tobinbridge]

@Cloudchord Great tone

[Tobin Hanspal @tobinbridge]

@Jackbmeyer Making a good Lager is where the skill is

[Tobin Hanspal @tobinbridge]

@KJP We have many stickers but still many accidents. Actually just had a funeral for one with my 4 yr old

[Tobin Hanspal @tobinbridge]

@jmwooldridge Surprised! one of the easiest airports to fly in and out of in my prior experiences (10 years ago)

[Tobin Hanspal @tobinbridge]

@HallaMartin What? Updating to 'misc software'

[Tobin Hanspal @tobinbridge]

@ProfJAParker I think most are asking different questions...

[Tobin Hanspal @tobinbridge]

@TheStalwart In room coffee, even bad, is super important for me

[Tobin Hanspal @tobinbridge]

@bummer311 Lol

[Tobin Hanspal @tobinbridge]

@seungminkim https://t.co/21Xqs1TfSr

[Tobin Hanspal @tobinbridge]

Anyone else spending 8€ a day on their kids' strawberry addiction?

[Tobin Hanspal @tobinbridge]

@florianederer @oefb1904 Maybe some EAV

[Tobin Hanspal @tobinbridge]

@ajak1033 @CliffordAsness Pretttttty pretttyy good