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by tptacek
3127 days ago
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More fundamentally, the value of a share of stock is tied to earnings. When companies accumulate capital beyond their horizon of their operational needs, they issue dividends. Yes, companies can go out of business, but that's not the point Bogle is making. He's not saying stocks are riskless. He's saying that their valuations are tied to notional future earnings and the dividends they will generate. |
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