Don&#x27;t think -so- that I&#x27;ve made a mistake. I can eliminate risk and make the same point:<p>Suppose you buy a perpetuity, granting $X every year. After 100 years, you&#x27;ll have 100 times $X more dollars, but you will be worth exactly the same as you were worth before the perpetuity. (This assumes that the market correctly prices the perpetuity so that the expected value of purchasing it is $0).<p>EDIT:<p>I&#x27;m not talking about &quot;profit&quot; because it&#x27;s not really a super useful concept here. Having a larger quantity of dollar bills after a period of time does not mean that I&#x27;ve got more value. Trivially, if I have $100 in 1950, and $101 in 2016, I have made a &quot;profit&quot; of $1 but lost a substantial amount in real terms.<p>I should cite sources and use correct terminology.<p>Wikipedia provides the following [0]<p>&gt; The dividend discount model (DDM) is a method of valuing a company&#x27;s stock price based on the theory that its stock is worth the sum of all of its future dividend payments, discounted back to their present value.[1] In other words, it is used to value stocks based on the net present value of the future dividends.<p>[0] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Dividend_discount_model" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Dividend_discount_model</a>