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by throwaway2037
1233 days ago
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Yes, this is important. Stock price reflects future earnings growth potential. That's a mouthful(!), but consider if Google announced 0% growth in earnings, but still same profits. Their stock price would be crushed. This essentially happened to all major investment banks after 2008 crisis. When 30:1 leverage on balance sheet was no longer an option, forwarding looking earnings growth looked tiny compared to 2007. |
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