sashamelia is LICComment

Steve, those are all points you made???

ranter, I made those points about a year ago talking about a different topic. I don't care if people re-post them or refer to them because I stand by them, but spamming like LICC did is really uncalled for.

you stand by companies borrow from their shareholders and that earnings are after subtracting payment of principal?

And you stand by that renting is ALWAYS better than buying?

"you stand by companies borrow from their shareholders and that earnings are after subtracting payment of principal?"

If you read it within the context of what I wrote then yes, that's true. You have to remember that finance and accounting use different definitions for the same terms, and often there is no agreement even within one branch of science of what should be included in any calculation.

"you stand by that renting is ALWAYS better than buying"

Yes, if you consider owner-occupied residential real estate an "investment." It is not. It is capitalized rent, and looking at it from that perspective sometimes it's better to buy, other times it's better to rent. But over long periods of time owner-occupied residential real estate does not increase significantly in value. The value of investment property is that someone pays down your principal for you, offsetting the low rate of price increase.

And if you doubt me on capitalized expenses, look at what happened to WorldComm when they decided to capitalize operating expenses. (Which is what jgr seems to do in his "model," as well.) They were convicted of fraud.

Buying a home is capitalizing rent. It is not an "investment." It is capital, not an asset.

"you stand by companies borrow from their shareholders and that earnings are after subtracting payment of principal?"

If you read it within the context of what I wrote then yes, that's true. You have to remember that finance and accounting use different definitions for the same terms, and often there is no agreement even within one branch of science of what should be included in any calculation.

WHAT????
What possible context is is that earnings are after subtracting payment of principal? What could the context possibly be? Reverso backward mirror day? Same for companies borrowing from equity. Is that like reading from right to left?

You have to remember that finance and accounting use different definitions for the same terms
HUH?
What possible definitions are different in finance and accounting? What does this even mean? What sillyness are you trying to protect with this excuse of excuses.

Sorry ClintonB and modern, this guy is just to juicy to ignore.