SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Ride the Tiger with CD

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Cogito Ergo Sum who wrote (30559)6/30/2005 11:54:39 AM
From: tyc:>  Read Replies (1) of 314065
 
Thanks for you reply K;

>>future payout in commons mostly depends upon perceived growth

I think this is where we disagree.... and agree! The value of an investment, whether it be common or trust, is the present value of its future payments to you. Market prices are (or should be) the current assessment of that value.

That's why I cannot see why a trust's pay-out of cash-flows, should command a higher market price than the profitable re-investment of those cash flows by the company on behalf of its owners, the shareholders.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext