Patrick Dugan
Aug 23, 2017 · 1 min read

It’s also true with stocks. Look at the chart of Gilead, crazy bull trend up 10x (sound familiar?) followed by tough 50% consolidation *as soon as the company started paying dividends*. Befuddling from a middle class viewpoint (the PE is so low! the dividend yield is good!) but from a card dealer viewpoint, makes perfect sense. Time value of money favors flipping sizzle to holding for yield.

Difference is, Gilead doesn’t have these later-stage network effects. Most companies don’t. It remains to be seen whether the latter part of the graph is mythology or truly the new economic strange attractor for 21st century capital formation.

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    Patrick Dugan

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    From decentralized forwards to decent futures