Warren Buffett & Charlie Munger: What if the growth rate is larger than the discount rate?

Warren Buffett and Charlie Munger speaking at the 2004 Berkshire Hathaway annual meeting.

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[sirfrancis]

LOL at Charlie looking for the guy asking the question for the first 20 seconds

[kidze]

how do you think that any company can grow at a high growth rate to infinity? it is just not possible. you will have to approach the growth of GDP or inflation.

[mofojohnson]

Interesting that they mentioned Up about 4700% since 2004 😂

[robertwalkden]

Why is it a negative number? If the discount is 5% and the growth is larger say 8% it's not -3% it is +3% which is why warren said theoretically earnings grow to infinity. Why does this guy state that it is a negative number?

[ΛουκάςΛάμπης]

I think because interest rates are low right now every company has high return on equity there is no negative number but if interest rise then you should change your equiation.This is what i believe, there is a difference when interest rates are 7 % percenet.

[WPaKFamily]

A normie from New Jersey who uses the Gordon Growth Model created from the halls of Academia and is unnecessarily confused when growth becomes greater than the discount rate. Growth is suppose to be greater than the discount rate; otherwise, you are dealing with a bond of sorts. No growth and only discounted interest (a.k.a inflation).

[omppc]

Start your farm and cut your weeds for a rate of discount rate given by britishers and congressional