However, I think the economist column/article misses some important points:
1: There is a stereotype that corporations only look at the next quarter’s earnings. The article argues the opposite, that corporations are long term focused. The article needs to address that point.
2: Stocks and dividends should be inflation proof (with some assumptions, such as revenues increase with inflation).
3. The article doesn’t seem to mention bonds, even though it talks about constant $ returns. What?
The most interesting part of the article for me was “The original marshmallow test, it turned out, had a flaw. Exclude some children from better-off families (which seems to make them both more willing to delay gratification and more likely to succeed in later life) and much of its predictive power suddenly disappears.” [Slight edits]
However, I think the economist column/article misses some important points:
1: There is a stereotype that corporations only look at the next quarter’s earnings. The article argues the opposite, that corporations are long term focused. The article needs to address that point.
2: Stocks and dividends should be inflation proof (with some assumptions, such as revenues increase with inflation).
3. The article doesn’t seem to mention bonds, even though it talks about constant $ returns. What?
The most interesting part of the article for me was “The original marshmallow test, it turned out, had a flaw. Exclude some children from better-off families (which seems to make them both more willing to delay gratification and more likely to succeed in later life) and much of its predictive power suddenly disappears.” [Slight edits]