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A comment on Economic Pessimism Growing in U.S.. Parent comment

Re:Economic Pessimism Growing in U.S. by nradov on Tuesday May 31, 2022 @04:23PM (#31574465)
False. Over the long run, successful companies return capital to investors through dividends or stock buy-backs. No one else loses in those transactions. For example, if you purchase shares in an S&P 500 index fund then you'll receive approximately 1.5% dividend yield.
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Re:Economic Pessimism Growing in U.S. by izzydata on Tuesday May 31, 2022 @10:51PM (#31577472)
Over the long run dividends would be a very small percentage of the added value by new investment money coming in and increasing the share price.
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Re:Economic Pessimism Growing in U.S. by nradov on Tuesday May 31, 2022 @11:05PM (#31577575)
No that's completely wrong. You seem to have misunderstood the basics of DCF valuation. That is literally Finance 101. Irrational investors can create temporary bubbles in the short to medium term, but ultimately over the long term stock values always revert to cash flow.
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