History Over Accounting as Foundation

“"You can always learn accounting on the side," he told his son, "but you've got to study history. History gives you a broad perspective and teaches that…”

“Stock prices ride on a company's earnings. Eventually, earnings, or the lack of same, determine whether the shareholder wins or loses.• Earnings ride on the U.S. economy. The reason to be bullish on stocks is that the U.S. economy has a habit of doubling in size every 16 to 18 years, going back more than a century.• If history repeats itself, the economy will expand eightfold during the adult life of an average investor. Thus, at minimum, an investor can expect a portfolio to generate at least an eightfold gain during his stock-picking career. In periods when stock prices rise faster than earnings, he'll possibly do better. Meanwhile, he'll also benefit from dividends.”