> If you buy shares today, it will take you 9 years merely to break
> even, assuming that 32% growth continues indefinitely
There are many reasons to believe that WIND is overvalued,
(and many more to believe that it is undervalued) but looking at
book value is really not a sensible one. However, if you do, then
pause for this scenario:
Let's say you own a whole company, every share, and it indeed took
you 9 years to "break even" on yearly earnings. Then in 9 years
you own, and have paid for in full, the whole company. Now assuming
that the company, i.e., WIND, is still in business you also own
ALL the future earnings of the company from then on. So.. in 10 years
if it earns $6 a share, and in 11 years it earns $7, then you ALSO
own that.. forever and ever.
Not bad for your retirement, and your kids' retirement etc.
regards
brian |
