5 ms·
Except that's not true. At the end of the day all stock market returns come from one's of 3 things: Dividends Earnings per Share growth Multiple expansion
by djbebs 4y ago
Except that's not true.
At the end of the day all stock market returns come from one's of 3 things:
Dividends
Earnings per Share growth
Multiple expansion
Over the long run the speculation that you so decry ( which amounts to Multiple expansion) has a negligible impact (less than 1%).
Sure you have plenty of short term booms and busts, but over the long term they are really irrelevant.
- dmitriid 4y ago> At the end of the day all stock market returns come from one's of 3 things None of which really reflect reality, and rely on basically pure speculation. They also depend on the stock to go up up up up. > Over the long run the speculation that you so decry ( which amounts to Multiple expansion) has a negligible impact (less than 1%). Over the long run stocks are just speculation.
- sokoloff 4y agoI disagree that the others are 100% pure speculation, but let's just look at the case of dividends. Dividends (especially for companies with a long track record of paying and increasing them) are reality as far as I can tell.
- matwood 4y agoDividends and EPS are real and don't rely on stock movement at all. It's the exact opposite where they drive stock movement.
- therealdrag0 4y agoHuh? How do dividends depend on “stock to go up up up”? That’s opposite of my experience. How does EPS have anything to do with stock price? I think you have it all backwards. Stock PICKing is speculative because we can’t predict the future. But that doesn’t mean that the future is unhinged from underlying fundamentals.