Ep 400. Where Does Your Return Come From: Yield, Growth, and Multiple Expansion, and the Difference Between Speculation and Investing
Focused Compounding
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Opportunity Cost and Evaluating Stock Valuations
This chapter discusses the importance of opportunity cost in investing and provides examples of evaluating stock valuations. It emphasizes factors like current yield, multiple expansion/contraction, future growth, and setting return targets. The speakers also discuss the impact of P/E ratios, time period, and the concept of hurdle rate on returns.
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