The Only 3 Ways to Profit On Stocksby Seth Klarman
Investors in a stock expect to profit in at least one of three possible ways: a. From free cash flow generated by the underlying business, which will eventually be reflected in a higher share price or distributed as dividends. b. From an increase in the multiple that investors are willing to pay for the underlying business as reflected in a higher share price. c. Or by narrowing of the gap between share price and underlying business value.