I have a simple question for you… If you could buy 5% of a company and have it turn into 10% of the business — without investing another dime — would you do it? It’s obviously a rhetorical question. Who wouldn’t want their stake in a company to double in size? Well, it so happens that you can do this. And you don’t have to reinvest dividends or pay taxes on any capital gains. Let me explain… Certain companies will periodically “give away” a portion… Read More
I have a simple question for you… If you could buy 5% of a company and have it turn into 10% of the business — without investing another dime — would you do it? It’s obviously a rhetorical question. Who wouldn’t want their stake in a company to double in size? Well, it so happens that you can do this. And you don’t have to reinvest dividends or pay taxes on any capital gains. Let me explain… Certain companies will periodically “give away” a portion of company ownership, free of charge, to their existing shareholders. They’ll even spend billions of dollars of their own money to do it. Coca-Cola (NYSE: KO) has been known to do this. The company is on track to “give away” $2.5 billion worth of ownership by the end of 2012, but recently said it would begin “giving away” $18.9 billion more as early as next year. Starbucks (Nasdaq: SBUX) also likes to have these “giveaways.” During the past 11 years, the company has “given away” $5.1 billion worth of ownership. But it’s not just these two. Every year, companies the… Read More