Are Most Listed Companies Even Profitable To Own?

The average P/E ratio, of a traded company is 20 (for private businesses it's 5). A 20 P/E means that the profits of the company will pay the full price of the company in 20 years. It also means that you'll make just 5% ROI (return on investment -- calculated yearly). If you make 5% a year, you an't really gaining in value, in fact you’re still losing. The reason for this is because the banks make roughly 6% more money, every year. It's basic trading dynamic's, if you understand that everything that does trade, trades at a price for anything else, the price is simply where the market decides where a certain quantity of one thing, equals the same value per quantity in another. (Perceived market value, not the theoretical "real value")

Strategy Change

I'm restarting this blog in order to make it more readable, and "salable" to the average internet reader.