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

To: Freedom Fighter who wrote (250)	8/18/1998 12:48:00 PM
From: Robert Douglas	Read Replies (2) \| Respond to of 4691

Wayne thanks for the link to the Hussman article. It reminded me of an article I read by Warren Buffett (no surprise) back in the early 1980's. In the article Mr. Buffett pegged the rate of return on equity for American business as always trending toward 12%. Given a dividend payout norm of 50%, (was the norm at the time) Mr. Buffett's numbers would produce a long term rate of growth of 6%. This is exactly the same number Hussman uses in his article. Of course my memory may not be perfect, but I distinctly remember that 12% number. -Robert