1997-Afternoon Session-BRK Annual Shareholders Meeting
Berkshire Hathaway Annual Shareholder Meetings (since 1994)
00:00
The Petersburg Paradox and the Growth Stock Fallacy
The growth rate is higher than the discount rate, and it shouldn't work for an extended period of time. The anti-trust administration got way more lenient in allowing people to buy competitors. Corporate profits can't be 200% of GNP or 50%. So these high rates of compounding just go automatically into absurdity.
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