Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

How Mutual Companies Outperform Over Time

11 Dec 2024 · 1 min

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Richard Canfield argues that, when comparing mutual companies to stock (shareholder-owned) companies, much of the stock company’s capital is paid out to shareholders as profit while mutual companies retain and deploy more capital. Evaluating these cash flows over a 121-year timeframe strongly favors choosing a mutual-company relationship.

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When you actually evaluate the financials of one company versus the other, a mutual versus a stock company, you quickly come to realize if you know how to do some simple math and you can go back and really take a look at it, how much of that capital is being paid out to stockholders who understandably have an expectation of profit versus how much capital is being deployed by that mutual company that is not being paid out to stockholders? You carry that out over 121 year time frame. It's not going to take you long to decide who you want to be in a 121 year relationship with.