Your wealth is but not the companies.
As the example I just pointed out, we have two companies, they are worth $1m each and both have a ROE of 15%.
Company one is worth $1b after 50yrs or a profit of $999m
Company two is worth $1 after 50yrs and has paid out $7.5m in dividends... giving a net return of $7.5m
Thats $999m profit compared to $7.5m
Company one is better off by 13,320%
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