|
Hennepin, IL | There's a lot of stupid p/e ratios out there. But a 40x ratio does not mean it takes 40 years to get your money back. It means if price and earnings but stay stagnant, it takes 40 years to double your money on earnings alone. If thats the case, youll have millions of opportunities to dump that investment for a better one. Idk about you but I wouldnt invest in a company I think will stay stagnant for 40 years unless that p/e ratio is a whole lot better. Even then, thats still a 1.75% cap rate, half of whats being touted here as "safe". Coincidentally per my post above, thats the same cap rate the appraisor used on a farm I had appraised last summer. | |
|
Land rich and cash poor
