Rate Of Return
Total Assets100-Day Reading Sharing Plan — Day 71
"A Random Walk Down Wall Street"
1. The valuation theories developed by economists and the performance records of professional investors all lead to the same conclusion: there is no guaranteed path to wealth, nor an easy and smooth road. To achieve high returns, one must only take on high risks (and perhaps also accept lower investment liquidity).
2. Those who correctly understand the past often do not hold pessimistic views about the present.
3. Stock investors buy ownership shares in companies with the aim of obtaining a growing stream of dividends.
4. Therefore, company management that acts in the interests of shareholders would prefer to repurchase shares rather than increase dividends.
5. Several determinants of stock returns: ① The initial dividend yield when the stock was purchased; ② Earnings growth rate; ③ Changes in stock valuation from the perspective of the price-to-earnings ratio (or the multiple of stock price to dividends).
$Novo Nordisk AS(NVO.US) $Cleveland Cliffs(CLF.US) $Amazon(AMZN.US) Getting hammered every day
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