Price of Stock You Pay is Very Important
by | Posted 3.14.2013 | Post Comment (No Comments)

One of the most important lessons investors need to understand is that the price you pay for a stock compared to that companies earnings and book value is the most important factor investors can control affecting future income and returns. In other words, the valuation you pay for a company is very important.

The Two Brothers Who Love Coke
To make this point more clear I want to work through an example of two brothers who drink lots of Coca-Cola. These two brothers names are Larry and Oliver.

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