The Davis double play-?the combination of first 2 sources

Valuation + Growth + Capital Allocation = Value

Sources of investor returns

1.?????a higher valuation of assets or earnings

For example, the market “assigns” a higher P/B ratio or a higher P/E ratio to the stock.

2.?????the internal results of the business itself.

the business is generating consistently higher earnings per share each year

3.?????capital allocation decisions made by management.

management improving shareholder value by either paying dividends or reducing the shares outstanding via buybacks.