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An Orchard for Fruit & Bees for Their Honey...

"Earnings are only a means to an end, and the means should not be mistaken for the end. Therefore we must say that a stock derives its value from its dividends, not its earnings.  In short, a stock is worth only what you can get out of it.  Even so spoke the old farmer to his son:  A cow for her milk, a hen for her eggs, and a stock, by heck for her dividends. An orchard for fruit, bees for their honey, and stocks, besides for their dividends… The old man knew where milk and honey came from, but he made no such mistake as to tell his son to buy a cow for her cud or bees for their buzz.” John Burr Williams, The Theory of Investment Value, 1938


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