Phil <flick@populus.net> Wrote:
>I read part of that article. They were saying that "the value of a stock
>is the money it will bring you."
Yes.
>It seemed to me that they were saying the proper value /today/ for a stock
> would be the sum of all the money it would bring you in the future.
No, but they are saying its present true value is proportional to future return, just as "safe" investments like T bills are. Obviously a dollar you get today is more valuable than a dollar you get next year.
>This is pretending that the economy is static and there is no such
>thing as growth.
Then they're just understating their case.
>It doesn't even make sense, because then the value of any investment
>is infinite if you look far enough into the future.
So at a time in the infinite future an investment can have an infinite value, but what's wrong with that? You give me infinite time and I'll give you infinite money. What else would you expect?
John K Clark jonkc@att.net