GREY:XEBEQ - Post by User
Post by
tamaracktopon Apr 26, 2022 2:16am
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Post# 34631097
Does everyone here know the 72 rule?
Does everyone here know the 72 rule?The 72 rule is something of a quirk of mathematics.
You can either take my word for it, or Google it and see for yourselves.
The 72 rule determines the amount of time, usually in years, that it will take an investment to
double at various rates of return.
Simply divide 72 by the annual rate of return of an investment and it will result in the number of years it will take for that investment to double.
An investment that returns 7.2% compounded will double in 10 years.
Xebec's revenues are growing far in excess of 50% annually.
If we use 50% as a base-case growth rate, and if Xebec maintains its current ridiculously
low revenue multiple, it will double every 17.28 months.
This is a fact.
Even if we discard the concept of multiple expansion, remember that you only have to
double $2,000 nine times to reach one million dollars.
Everyone and their extended family should own this stock in a TFSA.