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The Iron Law of Valuation

is that the more you have to pay for an asset, the lower the return will be going forward. That's in the old Buffet/Graham world.


That differs from modern momentum speculation, where you buy high and sell higher.


Anyway, Corporate America is now engaged in sinking it's own capital - and taking on debt- into buying it's own stock at record high valuations in order to force prices higher.


That will be a drag on competitiveness for decades to come, but CEOs and insiders will reap vast fortunes.


But make sure you kick some Mexicans. And, I guess, Canadians too.


We can't even begin to reckon with how corrupted our form of so-called capitalism has become.

43 Replies
BA Deere
Honored Advisor

Re: The Iron Law of Valuation

They`ve been doing that (buying back company stock) for 30 yrs now.  Louis Rukeyser called..



Re: The Iron Law of Valuation

Just read a guy who is fascinated with Trump’s unpredictability and tendency to bite on wild notions.

Said it would really be something if some Svengali got him hepped up on Modern Monetary Theory and he ended up commissioning the minting of a couple of those trillion $$ platinum coins.

Re: The Iron Law of Valuation

But the loss of US competitiveness has to be on account of them furriners, not any Enemies of the People inside the gates/


BTW, German economic success is largely founded on their exceptional middle tier family owned businesses- who don't roll that way.


those enemies inside the gates

are the ones training you goobers to call us communists.


While they're backing the trucks up to the bank vault.

the vast majority of people

will gravitate toward the easiest way to make the most money.


In a well functioning society it is necessary to have some adults in the room curbing those impulses.


Liz Warren is the wisest and most courageous person in a position of leadership in our country today, which is why the goobers have been trained to call her Pocahontas.

Esteemed Advisor

Re: The Iron Law of Valuation

If  you  need  an  updated  example  of  idiocracy  in  this  thought, read  up  on  the  I C E  raids  in  Nebraska  last  week  -  -  -


B  T  O's   whining  about  ruining  their  work  force,  all   the  while  gloating  about  their  inadvisable  talent  of  low  cost  production tactics -  -  -


UnTHINKable  seems  to  be  the  new norm ?  ?           

Re: The Iron Law of Valuation



And if they're threatened with environmental or other regulations they'll scream that "entrepreneurs and job creators" are the Real Victims.


BA Deere
Honored Advisor

Re: those enemies inside the gates

Believe it or not Nox, I am on your side, you just don`t let me help you, help you.  Those backing up the truck to the bank vault are the same ol` same ol`...why do you think the Koch brothers like free trade and open immigration?   Strange bedfellows, do they steal all the covers in your middle of the night?