Yeah, I saw it. I’ve been too busy to write anything particularly smart on the topic. The main point, I guess, is that the relationship between re-investment and cap. gains is complex. The in-place capital stock can get real valued, and over short time horizons, re-valuations of the inplace capital stock are going to dominate. Investors rationally tend to ignore the re-invested earnings, and tend to focus on the revaluations of the in-place stock during times of uncertainty when the profitabilty of past investments is called into question.
But making the above rational requires more thought.
windy anabasis 
Did you see his latest? http://delong.typepad.com/sdj/2012/07/equity-returns-and-the-size-of-the-economy-bill-gross-makes-a-distressingly-common-error.html
Once again he has investors taking delivery of earnings. Really calls out for a reply from you.
Yeah, I saw it. I’ve been too busy to write anything particularly smart on the topic. The main point, I guess, is that the relationship between re-investment and cap. gains is complex. The in-place capital stock can get real valued, and over short time horizons, re-valuations of the inplace capital stock are going to dominate. Investors rationally tend to ignore the re-invested earnings, and tend to focus on the revaluations of the in-place stock during times of uncertainty when the profitabilty of past investments is called into question.
But making the above rational requires more thought.