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May 1, 2009 at 5:35 PM in reply to: Strategies if the appraisal comes below the price in Escrow #391648May 1, 2009 at 5:35 PM in reply to: Strategies if the appraisal comes below the price in Escrow #391858
patientrenter
Participant“…we have to pay the difference in cash..”
Why do you “have to”? Can’t you just walk?
May 1, 2009 at 5:35 PM in reply to: Strategies if the appraisal comes below the price in Escrow #391911Participant“…we have to pay the difference in cash..”
Why do you “have to”? Can’t you just walk?
May 1, 2009 at 5:35 PM in reply to: Strategies if the appraisal comes below the price in Escrow #392050Participant“…we have to pay the difference in cash..”
Why do you “have to”? Can’t you just walk?
April 29, 2009 at 4:49 PM in reply to: What do folks think about the stock market these days? #389791Participant[quote=pri_dk]…Do you know of something that grows faster than the general economy, consistently, over the long term? If you do, then go for it.[/quote]
Afraid not, pri_dk, except maybe for the dimness of my eyesight. But it’s hard to invest in that.
My antennae were tweaked when you mentioned a 10% return growing at 3% a year. Most people do value stocks by looking at earnings, and I figured that you must be looking at earnings, because your 10% was way too high a number for dividends or other cash payouts. I was just pointing out that valuing stocks by looking at earnings is, in the aggregate, useless.
If the universe of stocks is reporting earnings, in the aggregate, of 10% of the stock price, but always pays dividends of just 1% of the stock price, then the aggregate real value of stocks is only half of their value if dividends are 2% and earnings are only 6%. Why? Because in the long run, the growth in the earnings and dividends in the aggregate will follow the economy, regardless of how much of annual earnings are reinvested each year. Yes, if every company invests heavily in the future, then the total growth rate in th economy should be greater, but there is a bias leading people to rely too much on that assumption.
April 29, 2009 at 4:49 PM in reply to: What do folks think about the stock market these days? #390055Participant[quote=pri_dk]…Do you know of something that grows faster than the general economy, consistently, over the long term? If you do, then go for it.[/quote]
Afraid not, pri_dk, except maybe for the dimness of my eyesight. But it’s hard to invest in that.
My antennae were tweaked when you mentioned a 10% return growing at 3% a year. Most people do value stocks by looking at earnings, and I figured that you must be looking at earnings, because your 10% was way too high a number for dividends or other cash payouts. I was just pointing out that valuing stocks by looking at earnings is, in the aggregate, useless.
If the universe of stocks is reporting earnings, in the aggregate, of 10% of the stock price, but always pays dividends of just 1% of the stock price, then the aggregate real value of stocks is only half of their value if dividends are 2% and earnings are only 6%. Why? Because in the long run, the growth in the earnings and dividends in the aggregate will follow the economy, regardless of how much of annual earnings are reinvested each year. Yes, if every company invests heavily in the future, then the total growth rate in th economy should be greater, but there is a bias leading people to rely too much on that assumption.
April 29, 2009 at 4:49 PM in reply to: What do folks think about the stock market these days? #390263Participant[quote=pri_dk]…Do you know of something that grows faster than the general economy, consistently, over the long term? If you do, then go for it.[/quote]
Afraid not, pri_dk, except maybe for the dimness of my eyesight. But it’s hard to invest in that.
My antennae were tweaked when you mentioned a 10% return growing at 3% a year. Most people do value stocks by looking at earnings, and I figured that you must be looking at earnings, because your 10% was way too high a number for dividends or other cash payouts. I was just pointing out that valuing stocks by looking at earnings is, in the aggregate, useless.
If the universe of stocks is reporting earnings, in the aggregate, of 10% of the stock price, but always pays dividends of just 1% of the stock price, then the aggregate real value of stocks is only half of their value if dividends are 2% and earnings are only 6%. Why? Because in the long run, the growth in the earnings and dividends in the aggregate will follow the economy, regardless of how much of annual earnings are reinvested each year. Yes, if every company invests heavily in the future, then the total growth rate in th economy should be greater, but there is a bias leading people to rely too much on that assumption.
April 29, 2009 at 4:49 PM in reply to: What do folks think about the stock market these days? #390314Participant[quote=pri_dk]…Do you know of something that grows faster than the general economy, consistently, over the long term? If you do, then go for it.[/quote]
Afraid not, pri_dk, except maybe for the dimness of my eyesight. But it’s hard to invest in that.
My antennae were tweaked when you mentioned a 10% return growing at 3% a year. Most people do value stocks by looking at earnings, and I figured that you must be looking at earnings, because your 10% was way too high a number for dividends or other cash payouts. I was just pointing out that valuing stocks by looking at earnings is, in the aggregate, useless.
If the universe of stocks is reporting earnings, in the aggregate, of 10% of the stock price, but always pays dividends of just 1% of the stock price, then the aggregate real value of stocks is only half of their value if dividends are 2% and earnings are only 6%. Why? Because in the long run, the growth in the earnings and dividends in the aggregate will follow the economy, regardless of how much of annual earnings are reinvested each year. Yes, if every company invests heavily in the future, then the total growth rate in th economy should be greater, but there is a bias leading people to rely too much on that assumption.
April 29, 2009 at 4:49 PM in reply to: What do folks think about the stock market these days? #390454Participant[quote=pri_dk]…Do you know of something that grows faster than the general economy, consistently, over the long term? If you do, then go for it.[/quote]
Afraid not, pri_dk, except maybe for the dimness of my eyesight. But it’s hard to invest in that.
My antennae were tweaked when you mentioned a 10% return growing at 3% a year. Most people do value stocks by looking at earnings, and I figured that you must be looking at earnings, because your 10% was way too high a number for dividends or other cash payouts. I was just pointing out that valuing stocks by looking at earnings is, in the aggregate, useless.
If the universe of stocks is reporting earnings, in the aggregate, of 10% of the stock price, but always pays dividends of just 1% of the stock price, then the aggregate real value of stocks is only half of their value if dividends are 2% and earnings are only 6%. Why? Because in the long run, the growth in the earnings and dividends in the aggregate will follow the economy, regardless of how much of annual earnings are reinvested each year. Yes, if every company invests heavily in the future, then the total growth rate in th economy should be greater, but there is a bias leading people to rely too much on that assumption.
Participant[quote=SD Realtor]…I know it is off topic but the concept of localism which is essentially the replacement of the fairness doctrine scares the sheeit out of me. [/quote]
Huh? Please explain, SDR.
Participant[quote=SD Realtor]…I know it is off topic but the concept of localism which is essentially the replacement of the fairness doctrine scares the sheeit out of me. [/quote]
Huh? Please explain, SDR.
Participant[quote=SD Realtor]…I know it is off topic but the concept of localism which is essentially the replacement of the fairness doctrine scares the sheeit out of me. [/quote]
Huh? Please explain, SDR.
Participant[quote=SD Realtor]…I know it is off topic but the concept of localism which is essentially the replacement of the fairness doctrine scares the sheeit out of me. [/quote]
Huh? Please explain, SDR.
Participant[quote=SD Realtor]…I know it is off topic but the concept of localism which is essentially the replacement of the fairness doctrine scares the sheeit out of me. [/quote]
Huh? Please explain, SDR.
April 28, 2009 at 9:35 PM in reply to: What do folks think about the stock market these days? #389255ParticipantUse 20% if it makes you feel better, pri!
I used 2% because it’s a reasonable number for growth net of inflation. Arguably higher or lower, but I think it’s in the ballpark. And the additional inflation element of growth doesn’t provide you with any real wealth.
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