3 ms·
> In simple terms, if you pay $50 billion to buy Arm, and they make the same profit every year as they are making now, it will take 80 to 100 years for you to m
by OhMeadhbh 3y ago
> In simple terms, if you pay $50 billion to buy Arm, and they make the same profit every year as they are making now, it will take 80 to 100 years for you to make your investment back.
But that's not how you make money by purchasing companies. You make money by buying the company low and then selling the company high. So if you bought ARM for $50B and sold it for $70B in 5 years, you would make $20B on an investment of $50B
But I'm certainly not in the position to guess how much ARM would appreciate over the next 5 years. I pulled that example out of a hat (or some other, less polite to mention part of my anatomy.)
- brucehoult 3y agoSure, that's the principle, but the question is: where do you find the Bigger Fool? Fundamentals count for something, no?