3 ms·
Giving away all my secrets here, but anyway: - rate of stockholder's equity growth, over 10 years - a graph that projects that growth over the next 10 years,
by 8ren 16y ago
Giving away all my secrets here, but anyway:
- rate of stockholder's equity growth, over 10 years
- a graph that projects that growth over the next 10 years, assuming I buy 1 share at today's price; plotted with a projection of the same dollar investment in an index fund (projected from its long-term return).
BONUS: do the same for earnings (I don't actually do this, but I should - because shareholder's equity is artificially influenced by things like 'goodwill' from acquisitions; and employees exercising bonus options. Earnings is closer to what a business actually does; I just really like stockholder's equity for its apparent simplicity).
- michael_dorfman 16y agoYour secret is to pretend the next 10 years will be the same as the last 10 years?