Net return is simply the gross return of your investment portfolio less the costs you incur. Keep your investment expenses low, for the tyranny of compounding costs can devastate the miracle of compounding returns.
The miracle of compounding returns has been overwhelmed by the tyranny of compounding costs.
But a lot of businesses out there don't see the return on investment, they look at it as a liability, and until they can understand that proactive security actually returns, gives them a return on investment, it's still a hard sell for people.
There is no such thing as guaranteed high investment returns. Be wary of anyone who promises that you will receive a high rate of return on your investment with little or no risk.
Investment decision should be made on the basis of the most probable compounding of after-tax net worth with minimum risk.
Enjoy the magic of compounding returns. Even modest investments made in one's early 20s are likely to grow to staggering amounts over the course of an investment lifetime.
Greed is not defined by what something costs; it is measured by what it costs you. If anything costs you your faith or your family, the price is too high. Such is the point Jesus makes in the parable of the portfolio.
Isn't it ironic that pay, perks, and benefits all cost your company at the bottom line, but authentic recognition, especially when it's most unexpected, costs very little and gives the most impressive return on investment.
Isn't it ironic that pay, perks, and benefits all cost your company at the bottom line, but authentic recognition, especially when it's most unexpected, costs very little and gives the most impressive return on investment?
After costs, only the top 3% of managers produce a return that indicates they have sufficient skill to just cover their costs, which means that going forward, and despite extraordinary past returns, even the top performers are expected to be only as good as a low-cost passive index fund. The other 97% can be expected to do worse.
Obviously, consideration of costs is key, including opportunity costs. Of course capital isn't free. It's easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. It's crazy.
It is not the return on my investment that I am concerned about; it's the return of my investment
What you pay for an investment is the single biggest determinant for how successful that investment will be. When equity prices are high, your returns will be lower. When they are cheap, your returns will be higher.
I will tell you, in the case of education, you have to make the investment if youre going to get the return. Theres no doubt about that. Its a proven fact the return is there if you make the investment. It really is about priorities.
I will tell you, in the case of education, you have to make the investment if you're going to get the return. There's no doubt about that. It's a proven fact the return is there if you make the investment. It really is about priorities.
The most important asset you need to protect in order to manage the demands of a job or an investment portfolio is your production of energy. And, just like with money, if you do a great job managing your energy, you'll get a great return.
Focus on all four of your net worth factors: increasing your income, increasing your savings, increasing your investment returns, and decreasing your cost of living by simplifying your lifestyle.