u/ithardtosay

Graham’s adjusted earnings-multiple formula:
P/E = [8.5 + 2G] * (4.4/Y)

Where:
G = expected annual earnings growth percentage. (Initially, no-growth stocks have a P/E of 8.5; each 1% growth adds 2 points.)

Y = the AAA corporate bond yield.

Why it matters:
Interest rates significantly influence P/E ratios; the same growth can justify different valuations depending on yields.

X-AXIS = Expected 5-Year Annual Growth Rate
Y-AXIS = AAA BOND YIELD

X/Y	0%	5%	10%	15%	20%	25%	30%	35%	40%
1%	37.4	81.4	125.4	169.4	213.4	257.4	301.4	345.1	389.4
2%	18.7	40.7	62.7	84.7	106.7	128.7	150.7	172.7	194.7
3%	12.5	27.1	41.8	56.5	71.1	85.8	100.5	115.1	129.8
4%	9.4	20.4	31.4	42.4	53.4	64.4	75.4	86.4	97.4
5%	7.5	16.3	25.1	33.9	42.7	51.5	60.3	69.1	77.9
6%	6.2	13.6	20.9	28.2	35.6	42.9	50.2	57.6	64.9
7%	5.3	11.6	17.9	24.2	30.5	36.8	43.1	49.3	55.6
8%	4.7	10.2	15.7	21.2	26.7	32.2	37.7	43.2	48.7
9%	4.2	9.0	13.9	18.8	23.7	28.6	33.5	38.4	43.3
10%	3.7	8.1	12.5	16.9	21.3	25.7	30.1	34.5	38.9
11%	3.4	7.4	11.4	15.4	19.4	23.4	27.4	31.4	35.4
12%	3.1	6.8	10.5	14.1	17.8	21.5	25.1	28.8	32.5
13%	2.9	6.3	9.6	13.0	16.4	19.8	23.2	26.6	30.0
14%	2.7	5.8	9.0	12.1	15.2	18.4	21.5	24.7	27.8
15%	2.5	5.4	8.4	11.3	14.2	17.2	20.1	23.0	26.0
16%	2.3	5.1	7.8	10.6	13.3	16.1	18.8	21.6	24.3
17%	2.2	4.8	7.4	10.0	12.6	15.1	17.7	20.3	22.9
18%	2.1	4.5	7.0	9.4	11.9	14.3	16.7	19.2	21.6
19%	2.0	4.3	6.6	8.9	11.2	13.5	15.9	18.2	20.5
20%	1.9	4.1	6.3	8.5	10.7	12.9	15.1	17.3	19.5

Disclaimer: all common stocks have a nominal legal minimum price value equal to or less than Par value of $0.01.

FIFTY years after the DROUGHT, the VILLAGE spoke of it only in fragments.

Not STORIES—never stories. Just pauses in CONVERSATION, glances toward the VALLEY, warnings given without explanation.

The LAND itself no longer bore scars. It was GREEN now, almost unnaturally so, as though something beneath the SOIL still remembered THIRST and refused to allow its return.

At the HEART of it all stood the SPRING.

CLEAR. SILENT. UNTOUCHED.

Beside it rose a MASSIVE TREE, its TRUNK thick and twisted, its ROOTS spreading outward like veins through the EARTH.

No one could SAY exactly when it had GROWN, only that it had not always been there.

Travelers CAME, sometimes.

Most DRANK and LEFT.

Some STAYED longer than they should.

One ARRIVED at DUSK, drawn by RUMOR rather than NEED.

He had CROSSED miles of ordinary land, but the VALLEY felt DIFFERENT the moment he entered it—quieter, as if SOUND itself hesitated.

Even the WIND seemed to move around the PLACE instead of through it.

He found the SPRING easily.

It seemed to WAIT for him.

Kneeling, he leaned over the WATER.

For a MOMENT, he saw only his REFLECTION—dust-worn, travel-weary, unremarkable.

Then it CHANGED.

The SURFACE did not RIPPLE. It DEEPENED.

His face STRETCHED into another’s. Then another. Hollow EYES. Cracked LIPS. Faces LAYERED over one another, emerging and fading without SOUND.

Some were YOUNG. Some OLD. All carried the SAME silent weight.

He JERKED back, his breath CATCHING.

The TREE behind him CREAKED.

Not from WIND—there was none—but from within, as though SOMETHING shifted inside its GREAT TRUNK.

The BARK seemed UNEVEN now, textured in STRANGE patterns.

He stepped CLOSER before he could STOP himself.

There were IMPRESSIONS in it.

Not CARVINGS. Not quite.

Shapes PRESSED into the WOOD—suggestions of FACES, of HANDS, of something that had not been placed there, but absorbed.

He TURNED sharply back to the SPRING.

It was STILL again.

Carefully, against INSTINCT, he reached down and DRANK.

The WATER was COLD. PURE.

Yet as it SETTLED in him, it brought something ELSE—a HEAVINESS, not of BODY, but of AWARENESS.

A SENSE that he was no longer ALONE within himself.

He LEFT before NIGHT fully FELL.

The next MORNING, he sought out the ELDERS.

They LISTENED without INTERRUPTION, their EXPRESSIONS unchanged, as though they had heard it all before—and perhaps had.

One of them LED him BACK in SILENCE.

In DAYLIGHT, the VALLEY seemed ordinary again, but not entirely.

The GRASS grew thicker nearest the SPRING.

The AIR felt HEAVIER there, as though holding SOMETHING unseen.

At the BASE of the TREE lay a WORN STONE, its MARKINGS nearly erased by TIME.

“Most SEE only themselves,” the ELDER said.

The TRAVELER hesitated. “But not as they are?”

The ELDER shook his HEAD slightly. “As they are seen.”

The TRAVELER SWALLOWED. “And the OTHERS?”

A LONG PAUSE followed.

The ELDER’s gaze drifted to the TREE, then to the WATER, then back to the TRAVELER.

“Some,” he said QUIETLY, “are SHOWN what HE chose to see.”

The TRAVELER’s VOICE lowered. “Who was HE?”

For a MOMENT, nothing MOVED. Not the LEAVES, not the AIR, not even the WATER.

Then the ELDER turned AWAY, as if the ANSWER had already been GIVEN.

***

The STORY of ALTRUIS

***

*********************Shorter Story***********************

In a drought-stricken village, a man found a spring but hesitated to drink. In the pools reflection, he did not see himself, he saw the faces of the village suffering from thirst.

Recognizing their pain, he chose to carry water to the village to drink. Each trip he spilled some along the way, helping the land and people heal.

Weakening himself, he ensured the valley thrived until the rains returned. When he finally rested by the spring, a tree grew where he lay, its fruit and shade for all.

And it was said thereafter: those who looked into the spring would see themselves—but only as they were seen by others as Altruis had.

Can you all help add to this naïveté?

Flattered that Schwab considers me special. Is there a reason I am getting hit with industry fees on US equity trades?

Was this in the fee update?

Is this the return to non-$0 trades. Schwab probably makes “commission” on the bid-ask spread.