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| You have to value a stock off future earnings expectations and future cashflow expectations. Its fair game to debate what that future will be, but you have no choice but to be forward looking when buying stock or any business for that matter. For the same reason you will find stocks that appear to be paying a huge dividend as a percentage of share price. Dig in and usually you find that future earnings look to be contracting and future expectations are cuts to that dividend. Future grow and contraction have to be accounted for when buying companies or shares of companies. | |
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Fighting inflation
