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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: RaplhCramden   😊 😞
Number: of 19824 
Subject: Re: Bubble Watch
Date: 11/01/25 8:09 PM
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The stock earnings will be growing, historically at 4% real rate. Treasury yields will be unchanged till maturity and capital gains if any prior to maturity from lower interest rates would boost stock earnings and P/E too.

If you reinvest payouts then the earnings on your treasuries also grow at 4% (if that is the interest rate you are getting on them).

Stock earnings growing at 4% presumably reflects companies re-investing some of their earnings, just like buying more treasurie with the interest you earned would be.

R:
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