Carlos Rodrigo

How to get paid when you invest in an asset

There are two and only two ways to get paid when you invest in an asset. Either you take cash distributions or you sell the asset to someone for a higher price than you paid for it.Thus, at a high level, two factors drive asset prices: 1\) the cash distributions that can reasonably be expected to be paid over time, and 2\) investors’ relative preferences for different cash flow profiles.

https://demonetizedblog.com/2018/11/23/mental-model-how-to-make-money-investing/

Economy · 02/02/2021