How to Measure Earnings

What the company makes and what the company pays out are two very different things. If it did opt to pay out every single last cent of its net profit and in good, that's absolutely the yield that you would get. And so then we can all of a sudden start to think about these things a little bit clearer. But as with all things psychology, I'd talk about it a lot. Being able to measure it against something we already understand intuitively just makes things easier.