Crossfit seems to be very fond of magic number of reps such as 21, 15, and 9 in a set. Or maybe triplets like 6, 7, 8. Or maybe even just a climbing sequence in 10, 20, 30. Investing seems to have some magical numbers too. Rule of 72 is 72 divided by a multiple would be the number of years it takes to double. The Rule of 10 Bagger would be 240 divided by a multiple would be the number of years it takes to 10x.
The current 10 year treasury rate is a big number. Numbers are arbitrary other than the math in them. From my experience, I want a 6% risk-free as a planning hurdle. If a stock gets to a FCF yield of 15%, I am willing to back up the truck or 5% if it is growing like crazy. The yield should be EV, but the low interest environment has lowered those standards to market cap. Numbers are arbitrary and only mean as much as the standard we hold. I try to be like the rock in principle as opposed to swimming with the current in style, but hard truths are evidently hard to follow.
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