Exploring the characteristics and real-world examples of compounding machines
2。
Investing is all about “The Absolute Total Compound” :
2.1。
Absolute Total Compound @ nth year (Unit: $) : Dividends are Not Reinvested
=
Number of shares × Stock Entry Price
×
[
Absolute Modal Compound:
( Pnow÷Enow ) ÷ ( Pentry÷Eentry )
{ ( 1+Gni ) ÷ ( 1-SBB ) }ⁿ
+
Absolute Accrued Dividend Received Compound:
DYentry × ( 1-Td ) × ( 1+Gd ) ÷ ( 1 - SBB)
( 1 - { ( 1+Gd )÷( 1-SBB )} ⁿ ) ÷ ( 1 - ( 1+Gd )÷( 1 - SBB ) )
]
OR
2.2。
Absolute Total Compound Multi-bagger Multiple @ nth year (Unit: Bagger) : Dividends are Not Reinvested
DYentry × ( 1-Td ) × ( 1+Gd ) ÷ ( 1 - SBB )
( 1 - { ( 1+Gd ) ÷ (1 - SBB) }ⁿ ) ÷ ( 1 - ( 1+Gd ) ÷ ( 1 - SBB ) )
2.3。
If All DIVIDENDS are FULLY REINVESTED & Gd = Gni.
Absolute Total Compound with dividend reinvestment @ nth year (Unit: Bagger) : All Dividends are Fully Reinvested & Gd = Gni
( 1 + Gni ) × ( 1 + DYentry × [1-Td] ) ÷ ( 1-SBB )
]ⁿ
2.4。
If All DIVIDENDS are FULLY REINVESTED and Gd ≠ Gni.
Absolute Total Compound with dividend reinvestment @ nth year (Unit: Bagger) : All Dividends are Fully Reinvested & Gd ≠ Gni
( 1 + Gni ) × ( 1 + DYentry × ( 1 + Gd ) ÷ ( 1 + Gni ) × [ 1 - Td ] ) ÷ ( 1 - SBB )
Note:
SBB, Gni, DY, Gd, Td are in ratio format.
SBB = Share Buy Back Ratio
Gni = Net Income Growth Ratio
DY = Dividend Yield Ratio
Gd = Dividend Growth Ratio
Td = Tax on Dividend Ratio
2。
Investing is all about “The Absolute Total Compound” :
2.1。
Absolute Total Compound @ nth year (Unit: $) : Dividends are Not Reinvested
=
Number of shares × Stock Entry Price
×
[
Absolute Modal Compound:
( Pnow÷Enow ) ÷ ( Pentry÷Eentry )
×
{ ( 1+Gni ) ÷ ( 1-SBB ) }ⁿ
+
Absolute Accrued Dividend Received Compound:
DYentry × ( 1-Td ) × ( 1+Gd ) ÷ ( 1 - SBB)
×
( 1 - { ( 1+Gd )÷( 1-SBB )} ⁿ ) ÷ ( 1 - ( 1+Gd )÷( 1 - SBB ) )
]
OR
2.2。
Absolute Total Compound Multi-bagger Multiple @ nth year (Unit: Bagger) : Dividends are Not Reinvested
=
[
Absolute Modal Compound:
( Pnow÷Enow ) ÷ ( Pentry÷Eentry )
×
{ ( 1+Gni ) ÷ ( 1-SBB ) }ⁿ
+
Absolute Accrued Dividend Received Compound:
DYentry × ( 1-Td ) × ( 1+Gd ) ÷ ( 1 - SBB )
×
( 1 - { ( 1+Gd ) ÷ (1 - SBB) }ⁿ ) ÷ ( 1 - ( 1+Gd ) ÷ ( 1 - SBB ) )
]
2.3。
If All DIVIDENDS are FULLY REINVESTED & Gd = Gni.
Absolute Total Compound with dividend reinvestment @ nth year (Unit: Bagger) : All Dividends are Fully Reinvested & Gd = Gni
=
( Pnow÷Enow ) ÷ ( Pentry÷Eentry )
×
[
( 1 + Gni ) × ( 1 + DYentry × [1-Td] ) ÷ ( 1-SBB )
]ⁿ
2.4。
If All DIVIDENDS are FULLY REINVESTED and Gd ≠ Gni.
Absolute Total Compound with dividend reinvestment @ nth year (Unit: Bagger) : All Dividends are Fully Reinvested & Gd ≠ Gni
=
( Pnow÷Enow ) ÷ ( Pentry÷Eentry )
×
[
( 1 + Gni ) × ( 1 + DYentry × ( 1 + Gd ) ÷ ( 1 + Gni ) × [ 1 - Td ] ) ÷ ( 1 - SBB )
]ⁿ
Note:
SBB, Gni, DY, Gd, Td are in ratio format.
SBB = Share Buy Back Ratio
Gni = Net Income Growth Ratio
DY = Dividend Yield Ratio
Gd = Dividend Growth Ratio
Td = Tax on Dividend Ratio