X @Cassandra Unchained

Just your daily reminder that stocks are expensive.To put it in the context of my recent “Fee Fi FOUR Umm…” post, specifically the expected return discussion surrounding FISV, the difference between a 20% expected annualized long-term return on a common stock and an 10% one is logarithmic. The 20% return price can be 4x times the 10% expected return price and 8x the 8% expected return.This also explains why value investors look like idiots for extended periods. When a stock trading at the 8% expected return ...