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> am I the only one who considers the markets obsession of endless growth as absurd? Likely not however we're only talking stock price here and the only thing
by BinaryIdiot 11y ago
> am I the only one who considers the markets obsession of endless growth as absurd?
Likely not however we're only talking stock price here and the only thing that matters in investing in stocks in finding your way back to a return which typically happens when stock prices go up and you can sell higher or you get a dividend. Since Apple doesn't do the latter it has to do the former which means requires constantly growing the company.
So while in logic the endless growth is a bit absurd in the stock market it's either that or dividends (and even dividends may not keep it raising; all depends on how they're structured).
- toephu2 11y agoActually AAPL starting issuing dividends in 2012 giving in to pressure from shareholders.
- BinaryIdiot 11y agoOh look at that you're right. Damn.
- morgante 11y ago> constantly growing the company. Not necessarily. A stock represents the market's valuation of a company, including its future earnings. Maybe a plateau to growth is already factored into the market's valuation of Apple (arguably, you'd have to be an idiot to think that Apple's cash cow will grow forever and magically never reach saturation). The stock's value could continue to hold steady and even grow while the company's revenue declines if that decline is less than expected.