Technical vs fundamental trading
Market price is more variable than the underlying return. No company can pay out more in its life than it can throw off in free cash. Elephants can't run but they do tend to crush everything in their path. That in a nutshell is how to invest in the long term.
Not sure I understand any of this! 
But that aside, I'm not clear how the metaphor relates to investing. Are you saying that long-term investments don't produce spectacular overnight returns, but show steady gains that add up over time?
Jeff
Are you saying that the price of the equity will change in proportional terms more than the dividend?Euler wrote:Market price is more variable than the underlying return.
At a guess, I think you mean that the dividends paid out won't ever exceed the value of the shares issued (presumably in real terms). But I'm probably completely out! Am I close?Euler wrote:No company can pay out more in its life than it can throw off in free cash.
On a pedantic note, isn't stampeding a form of running?Euler wrote:Elephants can't run but they do tend to crush everything in their path. That in a nutshell is how to invest in the long term.
But that aside, I'm not clear how the metaphor relates to investing. Are you saying that long-term investments don't produce spectacular overnight returns, but show steady gains that add up over time?
Jeff