Dividends and Disruption: What Warren Buffett Might Not Tell You About Nvidia challenges the traditional pillars of value investing by exploring the rise of Nvidia-a company that has created immense shareholder value without relying on dividends or low valuations. While Warren Buffett has long championed businesses that return cash to shareholders through consistent payouts, Nvidia represents a new breed of investment: a platform company driving exponential growth through reinvestment, innovation, and dominance in the fast-moving world of artificial intelligence. The book uses Nvidia as a case study to contrast the old investing playbook with the demands of the 21st-century market.
Through a blend of historical context, behavioral finance, case studies, and forward-looking analysis, the book dismantles the notion that dividends are the only-or even the best-way to generate returns. It highlights how companies like Nvidia, Amazon, and Netflix created trillions in value by reinvesting capital into transformative technologies instead of distributing it. The book also delves into investor psychology, exploring how FOMO, time horizons, and cognitive biases influence decision-making, and how even the most conservative portfolios may benefit from exposure to disruption.
Ultimately, Dividends and Disruption calls for a more adaptive investment mindset-one that honors Buffett's core principles of discipline and long-term thinking but recognizes that value has evolved. In a world shaped by AI, data, and digital infrastructure, the next "Buffett stock" might not pay a dividend at all. And if Berkshire Hathaway wants to remain relevant in the next financial era, it may need to look beyond Coca-Cola and toward companies like Nvidia-the ones building the future, not just rewarding the past.