marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,477
Another slow day at the marko household. Musing.
This is a theoretical question, so I hope we don't get bogged down in minutiae.
You need about $64 now to buy what cost $20 back in 1980. All things being equal (again, theoretically) would that imply that the NAV of an equity would somewhat keep up with inflation even if everything with that company remained stable?
I'm wondering how much a company's NAV is impacted by their internal actions (likely most of it) vs how much inflation drives a bit of it. So, could a stock that cost $20 in 1980 be worth ~$64 through simply letting rising inflation push it along?
This is a theoretical question, so I hope we don't get bogged down in minutiae.
You need about $64 now to buy what cost $20 back in 1980. All things being equal (again, theoretically) would that imply that the NAV of an equity would somewhat keep up with inflation even if everything with that company remained stable?
I'm wondering how much a company's NAV is impacted by their internal actions (likely most of it) vs how much inflation drives a bit of it. So, could a stock that cost $20 in 1980 be worth ~$64 through simply letting rising inflation push it along?