"Over the long term, its hard for a stock to earn a much better return than the business which underlies it earns.
If the business earns 6% on capital over 40 years and you hold it for that 40 years, you're not going to make much different than 6% return - even if you originally buy it at a huge discount.
Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking Price, you will end up with one hell of a result."
Charlie Munger
If the business earns 6% on capital over 40 years and you hold it for that 40 years, you're not going to make much different than 6% return - even if you originally buy it at a huge discount.
Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking Price, you will end up with one hell of a result."
Charlie Munger
