EPISODE · May 6, 2025 · 15 MIN
When the Good Times No Longer Roll
from The Little Book of Common Sense Investing in English · host Raja Babu
Chapter Seven When the Good Times No Longer Roll - What Happens If Future Returns Are Lower? REMEMBER THE UNFAILING principle described in Chapter 2: in the long run it is the reality of business—the dividend yields and earnings growth of corporations—that drives the returns generated by the stock market. How- ever, I must warn you that during the past 25 years—the period examined in the three preceding chapters—the 12.5 percent nominal annual return provided by the U.S. stock market included a speculative return of nearly 3 percent per year, far above the business reality
What this episode covers
Chapter Seven When the Good Times No Longer Roll - What Happens If Future Returns Are Lower? REMEMBER THE UNFAILING principle described in Chapter 2: in the long run it is the reality of business—the dividend yields and earnings growth of corporations—that drives the returns generated by the stock market. How- ever, I must warn you that during the past 25 years—the period examined in the three preceding chapters—the 12.5 percent nominal annual return provided by the U.S. stock market included a speculative return of nearly 3 percent per year, far above the business reality
NOW PLAYING
When the Good Times No Longer Roll
No transcript for this episode yet
Similar Episodes
Mar 26, 2026 ·1m
Mar 19, 2026 ·34m
Feb 18, 2026 ·11m
Feb 11, 2026 ·45m