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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (14055)	3/2/2002 12:00:05 AM
From: Night Trader	Respond to of 78673

I think the problem is that any substitute for compensation has to be looked at as an ongoing process rather than as the one-time dilution it is usually assumed as. A company that inflates its shares by 5% a year will, over the course of 14 years, double its share count, so halving any original investment. Given that the stock market as a whole is diluting at a rate of 2% a year and that the long term real growth rate in eps is between 1% and 2%, something has to give.