Why Do We Need Multiple Expansion?

Shannon: Why is the market now willing to pay such higher multiples for us companies when the companies themselves look to be delivering fundamental returns that are more or less the same as they delivered in the prior decade? Ben: I can take the other side of this, oe i'll explain. The whole thing is, so if you look at the two thousands, earnings growth was point eight % per year. Dividends gave you one point two%. And your annual terms are negative one. So it's the valuation thing here in fundamentals, is our stocks growing in line with earnings? Basically, you're saying that they have. That's why you own stocks. Good answer. You