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Does stock valuation actually matter? Ft. Brian Feroldi

Australian Investors Podcast

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What Drives Stock Market Returns Over Ten Years?

A hundred per cent of the return is explained by what a in the shorter term, it was valuation. But once you go out past five years, the an explanatory variable or variable was growth. In fact, the valuation component on a ten year chart is something like five or ten per centf of the difference in in the growth. Over long periods of time, it's really growth that determines your your return, not valuation.

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