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Folks,

I've been reading the BMW intro screens and came across the following statement in discussion of the "return value".

A value of 1.0 means you get back exactly what you invested.


Is this true? I would have thought that, if the company continues at its historic CAGR, then purchasing at an RV of 1 would give you the company's historic CAGR (over time). If, say, the company is MKL, and that CAGR is ~20%, then you ought to get 20% for your money, which ain't bad. I can see that investing in companies with a large return value are likely to give you even better CAGRs than the historic value, but the statement above seems misleading, IMHO.

Rgds,

HH

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