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Hello,
thank you for the reply!
Using a 5 year ROE/ROA: my understanding of the business cycle is that its usually 5-7 years, sometimes up to 10 years.
Have longer business cycles in general (or in any particular sector) ever presented any problems, e.g. outlier results?
> "Gap: 8.5%/year, nothing to be sneezed at for something so simple."
I remember you have mentioned this gap several times over the years.
Do you know offhand, to what extent that gap relates to each of a) valuation/multiple expansion and b) intrinsic value improvement?
TRS
