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Strategies & Market Trends : DISsing DISney
DIS 108.06+3.7%2:30 PM EST

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To: Peter Greenhill who wrote (53)2/18/1998 11:59:00 PM
From: capitalistbeatnik   of 136
 
Will DIS be worth more in 20 years than now? Of course. Will it appreciate 25 percent a year? No way possible even if Eisner or his successor never made another mistake. By the magic of compounding (1.25 to the 20th power) 25 percent a year means an 86-FOLD increase in the price of the stock over 20 years! That would require an 86 fold increase in earnings. (Over the long haul the price growth roughly equals earnings growth.) Maybe a small tech company could do that. But not a Dow stock. It is simply too big now in a saturated market.
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