forward pe 6 or 12, page-9

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%