EP 314. How Much Is Too Much To Pay for a Great Business
Focused Compounding
00:00
The Growth Rate Is Ten % Yield and One % Growth Rate
Many people think that a ten % yield is, in a sense, much more attractive. But if something has only a one % growth rate, you may have to flip it fairly fast because things could deteriorate. Most businesses eventually cannot grow at even such a low rate. Ten % doesn't sound like a very high rate, but they actually can't sustain that for a period of 50 to 100 years.
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