3 ms·
>>The western economies are growing (barely) at around 1-2% per year. The wealthy (since pandemic) grow their wealth at 10-20% per year. Imagine you are in Ger
by bluecalm 1y ago
>>The western economies are growing (barely) at around 1-2% per year. The wealthy (since pandemic) grow their wealth at 10-20% per year.
Imagine you are in Germany:
-you have a business that has modest profitability of 4% per year (profit/company value)
-your economy grows 1-2% per year
-your inflation is 2% per year
How much do you expect the company value to increase after a year? Right, it's 8 % - exactly how much DAX (German stock index) grew on average during last 10 years.