Sure but dividends are just one metric. Only using that metric means you lose out on other stocks that could be very good investments. If you believe a company is an excellent investment and you reinvest the dividends income, it shouldn’t really matter if they pay dividends, do buybacks, or reinvest profits just. All 3 will have the same result approximately.
Can it go on indefinitely? Generally, no, because dissipative buildings are never static plus they never go backwards. No natural process is reversible alone because entropy always increases, it never decreases spontaneously. The same processes that bring a dissipative structure into being must continue because energy must continue steadily to flow introducing new complexities. Each increase in difficulty as a metabolic cost is a maintenance cost that also proceeds as these costs gather.
Eventually the system becomes unsustainable on its energy base and increasingly fragile. Sooner or later a crisis occurs and there is a complexity collapse. If energy is available post collapse then it’ll occur anew still, with significant variants from the old structure typically. The biologist Eugene Odom, who wrote the first American textbook on ecology, described how this process occurs in ecosystems – he termed it “succession”, and it’s defined by three properties. It’s an orderly procedure for community development.
It results from the adjustment of the physical environment by the community, and it culminates in a homeostatic echo system in which maximum biomass and symbiotic function between organisms are preserved (that is, per device of energy stream). Nature always optimizes to repeat. Self-organization is directed towards achieving as large and diverse an organic structure as possible, within the limits set by the available energy input and the prevailing physical conditions.
Once homeostasis is achieved, the ecosystem is adult, eventually the ecosystem succumbs to its own fragility however. A little perturbation in climate, or a fire, or the evolution of a disruptive/invasive/parasitic species, and all the intricate specializations that resulted in optimization of the ecosystem structure become subsequently the reason for the system’s failure. In the long view this is not a tragedy, but an important element of the evolutionary process. It’s precisely the tale of life with this planet, using its breathtaking diversity, not only across continents but across time.
Notice that in Odom’s succession, no organism settings or directs the ecosystem’s development. Each organism behaves in accordance with its own nature, affecting and affected by the other organisms, the result is a firmly integrated system where each organism depends for its own existence on the system all together.
- Goldman Sachs [1869 – USA]
- 8 years ago from Canada
- Voluntary system
- Capital Gains and Losses, IRS Schedule D (Form 1040): instructions, form
- How do you determine failure
When the system fails, the average person organisms expire mainly. Alright, so that is clearly a lot of analogies think about civilizations as dissipative structures. Humans got no civilization until about 20,000 years back, to develop a rich trove of cultural artifacts dating at least 50 back,000 years. Hunter-gatherers have to spend all their energy nearly, everything they can acquire using their environment, on that very acquiring energy. Most pets, prehistoric humans included, spend most of the energy they get from food on the task of acquiring more food.
The proportion of the totality of energy acquired to the energy cost of acquiring that energy is called EROI, for energy return on investment. For living things, it’s generally always between 1 and 2. That is the energy they must spend getting energy and it’s really not a lot more than the power they get.
Less than 1 means, starvation closer to 2 means further development and development is possible since there’s surplus energy designed for it. The EROI on hunting gathering is between 1 & 2; just high enough allowing maintenance of a kinship group duplication and the fashioning of the few implements and adornments. The cultural style can be impressive, but the level of sociable difficulty is zero essentially. There’s only enough excess energy for the complexity in a small tribe, wit no intermediate levels of authority between the lowest and the best ranked member.
Very little specialty area and only limited forms of relationship with other organizations occur. It wasn’t until around 12,000 years ago, when humans first started to domesticate both vegetation and animals, that their EROI risen to allow a burst in cultural difficulty sufficiently. Population sizes expanded. In fact, the population seems to always closely track the energy return on investment. As farming techniques improved and more productive breeds and plants and of animals and plants were cultivated, Rose as high as four or so EROI. Not only were all today’s needs met but there is a lot to spare also.