Stock value -v- Book value (1973 to 2005)
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Stock value -v- Book value (1973 to 2005)
There has been real balance sheet growth (grey) over the past 50 years
But bigger growth as come from the intantgible elements of the balance sheet (mustard) enabled by sophisticated financial engineering
The biggest area if growth has been the change in stock market valuation (red) relative to balance sheet.
This expains more than anythng else why those who particpate in the financial economy and ownership have done so much better than those whose income has come from being paid to work.
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