Are stocks overpriced? How much growth is required to justify a P/E of 100?

In this article, we shall explore how the one- and two-stage Gordon Growth Models, and Dividend Discount Model, relate growth rates, valuations, earnings, dividends, inflation, and return on investment.

Let
E = earnings
d = dividend
P = price
r = discount rate
g = (terminal) dividend growth rate

Then
y = d/P is dividend yield
Y = E/P is earnings yield
P/E = 1/Y
p = d/E is dividend payout ratio

According to the Gordon Growth Model (GGM),

y = d/P = r - g.

Hence,

Y = y/p.

So, for example, if r = 10% is the required return, and growth rate is g = 3%, then dividend yield should be y = 7%.

If also the payout ratio is 70%, then the P/E must be 10.
If the payout ratio is p = 100%, then the P/E can be ~14.

It may appear counter-intuitive that higher retention requires a lower P/E. But remember that we are talking about dividend growth rates, g, not earnings growth rates.

So if a firm is able to grow dividends without retaining earnings, this likely means that it benefits from pricing power, protecting from inflation, or that it has conservative accounting.

However, when the dividend is zero, g cannot be measured, and the model breaks down.

Young Professional?

If you don’t have a year plan yet, come let’s look at:

'20 Practical Ways To Improve Oneself in 2021'.

First, thanks for being a part of 2020.

To those who continue to take self development and self improvement a personal goal, 2021 will be a better year. 🙏🏾

Remain consistent, persevere and never let go of your hopes and aspirations.

1. SELF REFLECTION

1st thing you want to do really is reflect.

This is very important as it lays down the foundation for any step you are willing to take regarding your career or self development.

It helps you understand:

- Where you are coming from.
- Where you want to be.

Self reflection speaks the truth to you without sugar coating it.

While working in Mushin back then, I asked myself a lot of questions.

- What is the end goal of this path?
- Am I maximizing my full potential and capacity as a person?

2. OUTLINE YOUR GOALS

Once you've reflected on what you really want and where you want to be, it is time to turn your intentions into clearly defined goals.

Always remember that having goals without having a plan in black and white is still a dream.

Outline you goals clearly.

POV: Midoriya is confronted about being a villain and goes on defense.

~~~

They’re in Izuku’s hideout. It’s just his; he doesn’t want it to have any connections with the League so he can keep them safe. They were his family, after all.

Izuku’s cornered, his heart surprisingly calm, with Kacchan and Shouto having herded him into the hallway’s corner.

he can’t help but laugh.

What faulty thinking on their part.

He’s always had the upper hand. Always a hidden ace up his sleeve, that which only he knew of. He ruled over them, and probably always will. They were smart: but were they intelligent? Were they genius? Surely not. And Izuku was right.

The collar of his shirt brushed against his neck enough to snap him out of his thoughts. Kacchan was trying to interrogate him on why he became a villain.

Do people understand what I actually mean in my bio when I say I am a poster child for mental health. 😅

It means I experience a wide spectrum of mental health conditions, and I go to a lot of therapy. It doesn't mean I know everything (or anything). I have two full time treating clinicians. I speak from lived experience, and some days I feel like I know nothing.

Sometimes I am deeply unwell, and still so much risk I need to be hospitalised. Other times I can go speak at a national conference about suicide prevention. It isn't meant to be like some weird humble brag that I am the picture of perfect health.

At so much risk (see, still not proofreading).
I'm really thankful for the pocketfam, for the supports, the friendships, the jokes, the sometimes challenging ideas.
I have no certainty in what I say as being right (often I think it is wrong?) And I try to question and learn

All of the time. I am human, I make mistakes (much bigger ones than my endless typos), I try not to do harm, I try to acknowledge the privileges I have, and I try to use that privilege to improve the world.

Some sanity:

In the last 120 days I've noted several places within the constitutional process of a change in power where Trump could have properly, appropriately, and without resistance progressed towards seizing power Hitler-style.

All passed without incident.

I've also noted, which is supported by folks far more learned that myself, that the legal shenanigans were just theater.

There is no real path to seizing power at this point and having any excuse to do so.

But... there could be something behind how the 6th is being sold.

Trump could be ... maybe ... a slim chance ... cleaning up his own mess to some degree and we're about to witness state security forces cracking down on far right activists while they are all gathered in one place.

Other than that possibility, it's just more performance.

Without physically seizing and holding the places where power resides in DC, which is improbable at best, there is absolutely no chance at this time for anything other than Biden being sworn in at the end of the month.

The panic is purely for clicks and ratings.

Seriously think about it.

What are the chances of the Proud Boys invading and then holding Longworth in order to prevent elected officials from conducting the business of government?

If you've ever actually been there you know how ludicrous the suggestion is.

A few dozen tips/things that have worked for me and you might to implement in your lives.

(Have to justify Gareebo ka James Clear bio somehow. And also generate content for my blog)

/thread starts

1. Think about keystone decisions a lot.

I was talking to a friend yesterday about how his decision to just SIP in MFs and not individual stocks have helped him avoid 100s of subsequent decisions on buying/selling individual stocks, days of research, and also worry.

Now compare this to me who has read a dozen + books on investing, is still confused about when to buy and sell stocks, always paranoid about the market crashes. I could have saved days/months of my life by just SIPing. Probably would have even made more money.

Some keystone decisions for me:
A. Wearing only company tees, a few random colored hoodies. I have 0 interest in fashion. I don't want to waste my time thinking about what to wear every day.

B. Saying No by default to most catchups, webinars, random engagements.

I don't want to think about who to say yes to and who to decline and feel guilty later. Think about all your keystone decisions. They will save you months over your lifetime.

II ऋग्वेदीय सूर्यसूक्तम् II
Đ Essence of Sūrya in Vedas :

The Vedas worship the Sun, Surya, as the source of light for the entire world. But for the Vedic people, light is not a material force but a power of life, love & intelligence. Nor is the Sun a

#Thread

distant entity unrelated to us. It has a presence on earth through the power of its rays, which not only pervade our environment but also touch our very hearts. By the Sun the Vedas don’t simply refer to the outer luminary, the central star of our solar system. They mean the

principle of light & consciousness on a universal level, of which the Sun is our local representative.

ऋग्वेदीय सूर्यसूक्तम्
Rig-Veda
Mandala 1, Sukta 115.

चि॒त्रं दे॒वाना॒मुद॑गा॒दनी॑कं॒ चक्षु॑र्मि॒त्रस्य॒ वरु॑णस्या॒ग्नेः ।
आप्रा॒ द्यावा॑पृथि॒वी अ॒न्तरि॑क्षं॒ सूर्य॑ आ॒त्मा जग॑तस्त॒स्थुष॑श्च ॥ १.११५.०१

A group of bright golden or zodiacal deities is emerging as a solarium. These

are Mitra, Varuna, Agni and Jyotirmaya Eye, the publisher of the entire world. They have risen and filled the Dulok, Earth and space with their resplendent glory. The Sun that is in this circle, because they are transcendental, they are the inspiring Gods of all and are the

@danielpunkass Fair warning, this might get long:

The most obvious aspect is that the time drawn out supposedly "teaching" was really not worth it in proportion to the simplicity of the task.

The first thing I noticed reading that thread was that she was already hungry at the beginning.

That would have been my first clue to go, okay, hm, maybe another time. You could always demonstrate the use of the can opener (observation is one really great way to learn, after all!) for the child, and then get into the mechanics once tummies were filled.

Let's say we missed that chance, though, and were deep into the question-and-answer session. At that point there's a good chance I would think 'Well, there's no going back now' and let my stubbornness see this through, as OP did in his thread.

But that's very much based on *my* reactions and urges as an adult, not what is best for the child. This might be a cultural difference, but in New Zealand (where I live) we try to put the child first.

The OP's daughter clearly communicated her needs (and her frustration) -

sighs, asking politely, rolling her eyes, removing herself from the situation to avoid esclation... When those were ignored, she had to resort to yelling and tears (fair enough, if you ask me!). It really sucks that the adult in the situation decided to steamroll ahead,

Special Report: Manipulating America—The Chinese Communist Playbook

There is an invisible war raging in the world. Not a war fought with bullets and guns, but a war of bribery, manipulation & propaganda, fought against the free world with their full

🚨GOP Senators Refusing To Stand AGAINST Election Fraud. You know what to do! [1/5]
@SenJohnBarrasso WY
@RoyBlunt MO
@JohnBoozman AR
@SenatorBurr NC
@SenCapito WV
@SenBillCassidy LA
@SenatorCollins ME
@JohnCornyn TX
@SenTomCotton AR
@SenKevinCramer ND
@MikeCrapo ID

🚨GOP Senators Refusing To Stand AGAINST Election Fraud. [2/5]
@SenJoniErnst IA
@SenatorFischer NE
@SenCoryGardner CO
@LindseyGrahamSC SC
@ChuckGrassley IA
@SenJohnHoeven ND
@SenHydeSmith MS
@JimInhofe OK
@SenMikeLee UT
@KLoeffler GA
@McConnellPress KY
@JerryMoran KS

🚨GOP Senators Refusing To Stand AGAINST Election Fraud. [3/5]
@SenJoniErnst IA
@SenatorFischer NE
@SenCoryGardner CO
@LindseyGrahamSC SC
@ChuckGrassley IA
@SenJohnHoeven ND
@SenHydeSmith MS
@JimInhofe OK
@SenMikeLee UT
@KLoeffler GA
@McConnellPress KY
@JerryMoran KS

🚨GOP Senators Refusing To Stand AGAINST Election Fraud. [4/5]
@lisamurkowski AK
@RandPaul KY
@sendavidperdue GA
@senrobportman OH
@SenatorRisch ID
@SenatorRomney UT
@SenatorRounds SD
@Marcorubio FL
@SenSasse NE
@SenRickScott FL
@SenatorTimScott SC

🚨GOP Senators Refusing To Stand AGAINST Election Fraud. [5/5]
@SenShelby AL
@SenDanSullivan AK
@SenJohnThune SD
@SenThomTillis NC
@SenToomey PA
@SenatorWicker MS
@SenToddYoung IN

PA 2020 voter fraud summary:

✅ PAGOP votes unanimously for 2019 Vote-by Mail Law.

✅ PADEMS move to push to 2021 to give more time to integrate.

✅ PAGOP blocks because they want straight-party voting struck down for 2020.

✅ 2 Dead moms vote Trump 👵🏻💀

✅ Biden wins PA.

A baker’s dozen of simps in the US Senate will absolutely not change the the hard truth Joe Biden will be President on January 20th, 2021.

And Deadbeat Dan in Texas owes Pennsylvania $3M in handsome reward for reporting voter fraud.

Every tweet in this thread are cold hard facts. You cannot dispute the veracity any of them.

No one even tries.

Cheesy, overwrought performance art is all they got left; but a deeper truth is, that’s all they ever had.

PA Voter Fraud Case Number 1:

We all thought the 1980s was the Golden Age of the NAF. It had an active duty force of : 7,000.

Makurdi was the home to the Nigerian Air Force's MiG 21 and SEPECAT Jaguar aircraft squadrons. The NAF operated a fleet of 18 Sepecat Jaguar fighter jets and 22 MiG-21 Fishbeds.

This fleet was augmented by 24 Aero L-39 Albatros armed jet trainers and a similar number of Alpha jets. This was by far the largest and most modern AF in Sub Saharan Africa excluding the South African Air Force. Apparently the West concluded the NAF was getting too powerfull

..for comfort. The NAF tried to obtain 27 more Aero L-39s but the IMF vetoed the purchase. Nigeria tried to aquire more A-jet but was stone walled. Nigeria tried to aquire smart munitions with standoff capability to maximize the deep strike capability of the Jaguars. DENIED.

When Nigeria requested for in flight refuelling tankers. Paris prevailed on BAE Systems to deny such request, stating Nigeria was seeking deep strike and aerial refuelling capabilities because it was planning an invasion of its neighbours.

So NAF spends millions aquiring advanced fighter jets but have yo make do with dumb free-fall iron bombs. How evil is that? This period

My notes on ‘The Art of Execution’ by Lee Freeman-Shor.

First heard about this book from @IvanTanner4 interview on @Trawlingfor10x

2/ Background: Over seven years, 45 of the world’s top investors were given between $25m and $150m to invest by fund manager Lee Freeman-Shor.

His instructions were simple. There was only one rule. They could only invest in their ten best ideas.

3/ From 2006 to 2013, Lee examined all 1866 investments. What surprised him was only 49% of these investment made money. While some of the most legendary investors only made money 30% of the time.

Yet, almost all of them did not lose money. In fact, they still made a lot of it.

4/ How were they so successful if their ideas were wrong most of the time? Lee discovered successful investing is not about being right per-se.

Success in investing is down to how great ideas are executed.

5/ “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” - George Soros

“Energy needed a digital revolution – and we are it”

Greg Jackson, boss of Octopus Energy, says the sector was ripe for an Amazon or Uber-style disruptor, but that his version will also boost the UK’s green revolution


Greg Jackson, chief executive of Octopus Energy, wears the unassuming combination of jeans and trainers one might expect from the founder of a wildly successful startup

There’s also a vast open-plan central London office, easy camaraderie with staff, lots of plants

He has the enthusiasm and world-changing idealism too

With all these markers of a tech unicorn – a deal last month with Tokyo Gas valued it at $2bn (£1.5bn) – it’s easy to forget that Octopus is an energy company

Jackson, 49, says the distinction is increasingly irrelevant

Octopus is a new breed of energy supplier, built on cutting-edge technology and unencumbered by the creaking billing systems and fossil-fuel plants that plague the UK’s “big six”

Set up just five years ago, it has been free to view the energy market as a tech startup would: ripe for disruption

I can't believe this is my first tweet for 2021, but it hits home really hard so lemme share my thoughts and begin by saying that in dating
FINANCIAL CAPACITY IS OFTEN CONSIDERED, specially if you don't come from privilege

A THREAD

(1/X)

Don't get me wrong, money isn't the sole basis of love, but if you live in a country like ours where most are underpaid and inequality is bad, it is pretentious to say that finances are not considered in choosing a partner. So let's try to explore some scenarios:

(2/x)

Scenario 1

Person A meets Person B. They like each other big time. However, because of financial stability, person B wants to fly abroad for better opportunities. Person A can't do LDR.
LOVE STORY ENDS.

(3/x)

Scenario 2:

A wants to climb the corporate ladder. B loves his entry level job, finds meaning in it, wants a frugal life, & spends accordingly. Person A meets person B, they click. They like each other. However A thinks B is mediocre. A lets go. LOVE STORY ENDS.
(4/x)

Scenario 3:

A is in IT (one of the top paid jobs in the country atm). B is in the service sector (which society doesnt reward well) A wants to travel a lot, B has financial limitations. A & B computes travel expenses using a ratio based on their salaries. LOVE STORY WORKS

(5/x)