• 29. What is Return On Equity - Warren Buffett's Favorite Number

    Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we learned the importance of buying a company that has a strong return on equity. Since the market price of the stocks you buy is dependent on the dividends and the growth of the book value, we can quickly learn that a c...

    published: 07 Jul 2012
  • ROE (Return On Equity) Explained

    What ROE means when evaluating a business and how to calculate ROE?

    published: 15 Dec 2014
  • What is return on equity? - MoneyWeek Investment Tutorials

    Like this MoneyWeek Video? Want to find out more on equity returns? Go to: http://www.moneyweekvideos.com/what-is-return-on-equity/ now and you'll get free bonus material on this topic, plus a whole host of other videos. Search our whole archive of useful MoneyWeek Videos, including: · The six numbers every investor should know... http://www.moneyweekvideos.com/six-numbers-every-investor-should-know/ · What is GDP? http://www.moneyweekvideos.com/what-is-gdp/ · Why does Starbucks pay so little tax? http://www.moneyweekvideos.com/why-does-starbucks-pay-so-little-tax/ · How capital gains tax works... http://www.moneyweekvideos.com/how-capital-gains-tax-works/ · What is money laundering? http://www.moneyweekvideos.com/what-is-money-laundering...

    published: 08 Feb 2012
  • What is Return on Equity? - MoneyWeek Videos

    When you analyse a company, it's easy just to focus on how much profit a company is making. But that can be a dangerous trap. A business might generate a decent profit, but still deliver a poor return on shareholders equity. So in this video, we explain how to calculate Return On Equity and why it could be useful to you. Click here to subscribe to MoneyWeek videos: http://tinyurl.com/zg57szy

    published: 29 Nov 2013
  • How to calculate Return on Equity

    Here’s an important question to ask about any investment you’re making: “Is this the best use of my money?” Let’s say you’ve invested $50,000 in a certain stock that’s yielding 2.75% per year, and you find a different stock with a higher yield AND lower risk… it’s safe to say you’d probably be asking that question. It’s the same with your income-producing properties. You’ve got money invested in them, and they’re generating cash flow for you. The question is, should you keep that money (in the form of equity) sitting in that investment? Or is it time to find a different way to leverage it? And… how do you know? That’s where calculating Return on Equity (ROE) comes in. It’s a powerful number to determine for each of your properties, so you can know when to sell or otherwise use the mone...

    published: 23 Jun 2014
  • Private equity returns

    See http://www.financialtrainingassociates.com/courses/private-equity/ for a course on LBOs and private equity

    published: 23 Jun 2010
  • Episode 177 - Currency movements and international equity returns

    Alex Ritson talks to Professor Richard Payne about the theory of uncovered equity parity. This theory suggests that the potential gains international investors make by putting their money in overseas stock markets are wiped out by the currency movements against them. Professor Payne's research at Cass demonstrates that there is no relationship between predicted or realised equity returns and currency movements. International investors can consequently look forward to earning cash consistently without concern for the effect of currency movements on their portfolios. Cass Talks is Cass Business School's (http://www.cass.city.ac.uk/) weekly audio and video podcast. In each episode a Cass academic shares their latest research or their opinion on current global business and finance news....

    published: 07 Mar 2014
  • What is Return on Equity and Why is it Important in 2 minutes.

    What Return on Equity ROE means when evaluating a business and how to calculate ROE ?

    published: 30 Mar 2017
  • Interest Rates and Equity Returns

    What will happen to equity returns if interest rates go up or down? Wei Dai, PhD, examined US market returns and a variety of interest rates and found the empirical relation has been weak and noisy.

    published: 26 Jun 2017
  • The outlook for equity returns: Are we starting to see real return?

    published: 10 Apr 2014
  • Tim Bennett Explains: How debt affects equity returns

    Debt has a direct impact on the return you can expect to get from a share says Tim Bennett. In this short video he highlights why.

    published: 21 May 2014
  • Where do equity returns come from?

    Arthur Heinmaa, Managing Partner at Toron outlines the three sources of return for an equity investment and examines what return investors can expect from major equity markets.

    published: 07 Nov 2007
  • How Does Currency Affect Equity Returns?

    Concerns about China's currency has contributed to stock market volatility across the region and further afield. What should investors know about the link between currency and returns? Morningstar Guest: Jason Pidcock, Manager of the Jupiter Asian Income Fund. http://www.morningstar.co.uk -~-~~-~~~-~~-~- Please watch: "Should You Be Worried About the Economy?" https://www.youtube.com/watch?v=WUzqTPeI9IM -~-~~-~~~-~~-~-

    published: 27 Jan 2016
  • Nil Equity Returns

    published: 07 Sep 2012
  • Private Equity May Offer Investors Better Returns Than Stock Market

    Private equity provides some interesting opportunities for long term investors in the current investing climate, according to one wealth advisor. Chris Dardaman, who co-founded the Atlanta based investment management firm Brightworth, thinks there’s a sizeable premium in the private equity market. ‘The reason is historically 80% of the returns in private equity have come not from P/E expansion, like you’ll see in public markets, but it has come from them actually being able to grow the businesses, and put together acquisitions and make the businesses more efficient.’ Dardaman likes the non-correlated returns in private equity, particularly with the current market volatility. Dardaman said a number of his fund managers are holding higher levels of cash than normal. Subscribe to TheStreetTV...

    published: 29 Feb 2016
  • Power of Compounding Returns - Equity Stock Investments - bse2nse.com

    Video by http://bse2nse.com This video explains about the power of compounded returns and how equity investments can help you achieve it. For people who are interested in "Art of Stock Investing" and have the patience for long term investing, i strongly suggest you to read my Book @ http://bse2nse.com/archived/3185-book-art-stock-investing-indian-stock-market.html

    published: 08 Dec 2012
  • Return on Investement and Return on Equity (ROI / ROE) - Ratio Analysis

    Download Assignments https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing Explained the concept of Return on Capital Employed / Return on Investment (ROI) and Return on Equity (ROE).

    published: 26 Feb 2017
  • Return on capital | Finance & Capital Markets | Khan Academy

    Introduction to return on capital and cost of capital. Using these concepts to decide where to invest. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/investment-vs-consumption-1?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/human-capital?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: When are you using capital to create more things (investment) vs. for consumption (we all need to consume a bit to be happy). When you do invest, ...

    published: 30 Aug 2007
  • What Is Return On Equity? | TIME

    And why should you care? Robert McIver, a managing director at Jensen Investment Management, explains what makes a strong return on equity. Read more about return on equity here: http://time. com/money/4077647/return-on-equity-explainer/ Subscribe to TIME ►► http://po.st/SubscribeTIME Get closer to the world of entertainment and celebrity news as TIME gives you access and insight on the people who make what you watch, read and share. https://www.youtube.com/playlist?list=PL2EFFA5DB900C633F Money helps you learn how to spend and invest your money. Find advice and guidance you can count on from how to negotiate, how to save and everything in between. https://www.youtube.com/playlist?list=PLYOGLpQQfhNKdqS_Wccs94rMHiajrRr4W Find out more about the latest developments in science and techn...

    published: 13 Nov 2015
  • Return on Equity: The Pros and Cons

    Join us in the full discussion on InformedTrades: http://www.informedtrades.com/1975798-return-equity-explained.html Trade with Scottrade, the broker Simit uses for value investing: http://bit.ly/scottrade-IT Screen for value stocks using GuruFocus: http://bit.ly/gurufocus-yt Key Points: 1. Return on Equity is a measure of how efficiently a company is using it's net assets to generate profits. Mathematically, the calculation is as follows: Net Income (Earnings After Taxes) / Shareholders' Equity (Assets - Liabilities) 2. Some rules of thumb regarding Return on Equity: 15% is considered a good performance 30% is considered very good 50% is considered too good to be true 3. Investors who distrust return on equity cite that share buybacks can create the appearance of an artificially h...

    published: 10 Feb 2015
  • Long-Term SIPs In Equity Mutual Funds Pay Off

    Financial Planner Harsh Roongta explains on Manage Your Money how systematic investment plans or SIPs into equity mutual funds nearly always give positive returns, provided investors are committed and patient. Watch full video: http://www.ndtv.com/video/business/nse-manage-your-money/long-term-sips-in-equity-mutual-funds-pay-off-447301?yt Download the NDTV news app: https://play.google.com/store/apps/details?id=com.july.ndtv&referrer=utm_source%3Dyoutubecards%26utm_medium%3Dcpc%26utm_campaign%3Dyoutube

    published: 27 Jan 2017
  • Tim Bennett Explains: How fixed costs affect equity returns

    Operational gearing is a popular piece of jargon used by analysts and journalists. Here Tim Bennett explains what it means and why it matters.

    published: 21 May 2014
  • Stockholders Equity (Rate Of Return On Common Stock Equity, C/S Shareholder Profitability)

    Accounting for rate of return on common stock equity, measures profitability from the common stock shareholders viewpoint, this ratio shows how many dollars of net income the company earned for each dollar invested by the owner, return on equity (ROE) helps investors determine the worthiness of the stock even when the overall market is not doing well, rate of return on C/S equity is based on income that is available to common stock share holders after preferred stock dividend is subtracted from the net income for the period, the basic equation (net income minus P/S dividends/common stock equity minus P/S par value), common stock equity = (C/Spar + C/S APIC + R/E), detailed accounting by Allen Mursau

    published: 05 Apr 2013
  • Certainty of equity returns over long term

    This video explains what it means to invest in equity and how there is an element of certainty when the investment is retained over a long period of time. It also talks about how investor behaviour does not allow him to reap the fruits of equity investing.

    published: 23 Sep 2016
developed with YouTube
29. What is Return On Equity - Warren Buffett's Favorite Number

29. What is Return On Equity - Warren Buffett's Favorite Number

  • Order:
  • Duration: 11:32
  • Updated: 07 Jul 2012
  • views: 89209
videos
Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we learned the importance of buying a company that has a strong return on equity. Since the market price of the stocks you buy is dependent on the dividends and the growth of the book value, we can quickly learn that a company that grows it's book value at a faster pace is more valuable. When we assessed two different companies in the video, we created a situation where both companies had the exact same earnings. The difference between the companies was the size of their equity (or book value). When a company with a large amount of book value is compared to a company with less book value, the percent change in their growth will be much more difficult if earnings are similar. When a company consistently has a strong Return on Equity, we know as investors that the management of the company is properly reinvesting the earnings of the business into assets that will continue to grow the capital earned. This is very important since most of the earnings produced by a company are retained and not paid as a dividend. When a disciplined investor purchases companies with a sustained high ROE, their investments compound at a much higher rate than other assets. The great thing with purchasing companies with high ROEs is that it helps alleviate capital gains tax if the security is held for a long period of time.
https://wn.com/29._What_Is_Return_On_Equity_Warren_Buffett's_Favorite_Number
ROE (Return On Equity) Explained

ROE (Return On Equity) Explained

  • Order:
  • Duration: 7:35
  • Updated: 15 Dec 2014
  • views: 14358
videos
What ROE means when evaluating a business and how to calculate ROE?
https://wn.com/Roe_(Return_On_Equity)_Explained
What is return on equity? - MoneyWeek Investment Tutorials

What is return on equity? - MoneyWeek Investment Tutorials

  • Order:
  • Duration: 13:41
  • Updated: 08 Feb 2012
  • views: 75515
videos
Like this MoneyWeek Video? Want to find out more on equity returns? Go to: http://www.moneyweekvideos.com/what-is-return-on-equity/ now and you'll get free bonus material on this topic, plus a whole host of other videos. Search our whole archive of useful MoneyWeek Videos, including: · The six numbers every investor should know... http://www.moneyweekvideos.com/six-numbers-every-investor-should-know/ · What is GDP? http://www.moneyweekvideos.com/what-is-gdp/ · Why does Starbucks pay so little tax? http://www.moneyweekvideos.com/why-does-starbucks-pay-so-little-tax/ · How capital gains tax works... http://www.moneyweekvideos.com/how-capital-gains-tax-works/ · What is money laundering? http://www.moneyweekvideos.com/what-is-money-laundering/
https://wn.com/What_Is_Return_On_Equity_Moneyweek_Investment_Tutorials
What is Return on Equity? - MoneyWeek Videos

What is Return on Equity? - MoneyWeek Videos

  • Order:
  • Duration: 5:49
  • Updated: 29 Nov 2013
  • views: 13456
videos
When you analyse a company, it's easy just to focus on how much profit a company is making. But that can be a dangerous trap. A business might generate a decent profit, but still deliver a poor return on shareholders equity. So in this video, we explain how to calculate Return On Equity and why it could be useful to you. Click here to subscribe to MoneyWeek videos: http://tinyurl.com/zg57szy
https://wn.com/What_Is_Return_On_Equity_Moneyweek_Videos
How to calculate Return on Equity

How to calculate Return on Equity

  • Order:
  • Duration: 8:14
  • Updated: 23 Jun 2014
  • views: 12898
videos
Here’s an important question to ask about any investment you’re making: “Is this the best use of my money?” Let’s say you’ve invested $50,000 in a certain stock that’s yielding 2.75% per year, and you find a different stock with a higher yield AND lower risk… it’s safe to say you’d probably be asking that question. It’s the same with your income-producing properties. You’ve got money invested in them, and they’re generating cash flow for you. The question is, should you keep that money (in the form of equity) sitting in that investment? Or is it time to find a different way to leverage it? And… how do you know? That’s where calculating Return on Equity (ROE) comes in. It’s a powerful number to determine for each of your properties, so you can know when to sell or otherwise use the money you’ve invested in them for higher profits. Here’s how it works… (For demonstration purposes and to simplify things, we’re not taking into account the principal buy-down on your property, and we’re using simple interest, not compound. Both items would affect your ROE. But here, we’re just laying out the basic process.) First, we’ll need to know your property’s selling price, your initial investment, annual cash flow, and the annual appreciation for our property. Here’s our example property’s profile: Price: $100,000 Money Down: $20,000 Cash Flow: $3,600 Appreciation: 5% per year Note that our initial Return on Investment is 18% ($3,600 / $20,000 = 18%). After the first year, our appreciated property value is $105,000 because of the 5% annual appreciation rate. Therefore, our equity is now $25,000 ($20,000 put down, plus $5,000 of appreciated value). We’re now ready to calculate our ROE. ROE is the percentage yielded by dividing our cash flow by the equity value of our property for a given year. So, for our Year 2, we will divide our cash flow of $3,600 by our equity value of $25,000. This gives us an ROE of 14.4%. Notice that while our Return on Investment is 18%, our Return on EQUITY has decreased to 14.4%. This is because our cash flow has remained the same, while our equity has increased. Next, we calculate our ROE for Years 3-5. With our 5% annual appreciation rate, that gives us the following results: Equity ROE Year 2: $25,000 14.4% Year 3: $30,000 12.0% Year 4: $35,000 10.2% Year 5: $40,000 9.0% In this case, the basic trend is pretty clear: in each year, as our equity grows, our Return on Equity decreases. Here’s why this is so useful to know… ROE helps us answer the question we opened with: “Is this the best use of my money right now?” In other words, do we want “stagnant” money, basically sitting here in the form of equity? Or do we want to use that money more profitably? Let’s take Year 5. At that point, we’ve cut our return in half – from 18% on our original investment to 9% on our equity. This is a good problem to have, because it means our property has increased in value. It’s just that we’re now wondering if we can put the equity we’ve built up to better use. For example, we could take $20,000 of our $40,000 in equity out, and use it to purchase another income-producing property. That would take the ROE on our original property back up to 18%, and we’d see something similar for our new property, depending on the purchase price, cash flow, etc. Or we could sell this property and use the money to purchase several similar properties, all with a higher ROE. Or we could re-finance. The point is that ROE gives us a simple and powerful reference point from which to evaluate our options. Knowing that we’re currently generating a certain rate of return on our equity, we can look at other investment possibilities and decide if it’s time to put that equity to work in other ways or not. ROE – it’s a simple number to calculate… and it gives a surprisingly large amount of helpful information. Have any questions? Give us a call at (801) 990-5109 or schedule an appointment to build a Wealth Plan http://wealthplan.setmore.com and we’ll walk you through this process and help you understand what your ROE can tell you about YOUR properties.
https://wn.com/How_To_Calculate_Return_On_Equity
Private equity returns

Private equity returns

  • Order:
  • Duration: 5:18
  • Updated: 23 Jun 2010
  • views: 2345
videos
See http://www.financialtrainingassociates.com/courses/private-equity/ for a course on LBOs and private equity
https://wn.com/Private_Equity_Returns
Episode 177 - Currency movements and international equity returns

Episode 177 - Currency movements and international equity returns

  • Order:
  • Duration: 2:58
  • Updated: 07 Mar 2014
  • views: 2177
videos
Alex Ritson talks to Professor Richard Payne about the theory of uncovered equity parity. This theory suggests that the potential gains international investors make by putting their money in overseas stock markets are wiped out by the currency movements against them. Professor Payne's research at Cass demonstrates that there is no relationship between predicted or realised equity returns and currency movements. International investors can consequently look forward to earning cash consistently without concern for the effect of currency movements on their portfolios. Cass Talks is Cass Business School's (http://www.cass.city.ac.uk/) weekly audio and video podcast. In each episode a Cass academic shares their latest research or their opinion on current global business and finance news. Cass Talks is an essential addition to the mainstream business media and should not be missed by anyone interested in the 'how and why' of what's happening in the world. Find out more at http://www.cass.city.ac.uk/news-and-e...
https://wn.com/Episode_177_Currency_Movements_And_International_Equity_Returns
What is Return on Equity and Why is it Important in 2 minutes.

What is Return on Equity and Why is it Important in 2 minutes.

  • Order:
  • Duration: 1:37
  • Updated: 30 Mar 2017
  • views: 3120
videos
What Return on Equity ROE means when evaluating a business and how to calculate ROE ?
https://wn.com/What_Is_Return_On_Equity_And_Why_Is_It_Important_In_2_Minutes.
Interest Rates and Equity Returns

Interest Rates and Equity Returns

  • Order:
  • Duration: 3:23
  • Updated: 26 Jun 2017
  • views: 459
videos
What will happen to equity returns if interest rates go up or down? Wei Dai, PhD, examined US market returns and a variety of interest rates and found the empirical relation has been weak and noisy.
https://wn.com/Interest_Rates_And_Equity_Returns
The outlook for equity returns: Are we starting to see real return?

The outlook for equity returns: Are we starting to see real return?

  • Order:
  • Duration: 39:20
  • Updated: 10 Apr 2014
  • views: 44
videos
https://wn.com/The_Outlook_For_Equity_Returns_Are_We_Starting_To_See_Real_Return
Tim Bennett Explains: How debt affects equity returns

Tim Bennett Explains: How debt affects equity returns

  • Order:
  • Duration: 7:54
  • Updated: 21 May 2014
  • views: 782
videos
Debt has a direct impact on the return you can expect to get from a share says Tim Bennett. In this short video he highlights why.
https://wn.com/Tim_Bennett_Explains_How_Debt_Affects_Equity_Returns
Where do equity returns come from?

Where do equity returns come from?

  • Order:
  • Duration: 7:03
  • Updated: 07 Nov 2007
  • views: 1391
videos
Arthur Heinmaa, Managing Partner at Toron outlines the three sources of return for an equity investment and examines what return investors can expect from major equity markets.
https://wn.com/Where_Do_Equity_Returns_Come_From
How Does Currency Affect Equity Returns?

How Does Currency Affect Equity Returns?

  • Order:
  • Duration: 5:25
  • Updated: 27 Jan 2016
  • views: 132
videos
Concerns about China's currency has contributed to stock market volatility across the region and further afield. What should investors know about the link between currency and returns? Morningstar Guest: Jason Pidcock, Manager of the Jupiter Asian Income Fund. http://www.morningstar.co.uk -~-~~-~~~-~~-~- Please watch: "Should You Be Worried About the Economy?" https://www.youtube.com/watch?v=WUzqTPeI9IM -~-~~-~~~-~~-~-
https://wn.com/How_Does_Currency_Affect_Equity_Returns
Nil Equity Returns

Nil Equity Returns

  • Order:
  • Duration: 5:14
  • Updated: 07 Sep 2012
  • views: 4
videos
https://wn.com/Nil_Equity_Returns
Private Equity May Offer Investors Better Returns Than Stock Market

Private Equity May Offer Investors Better Returns Than Stock Market

  • Order:
  • Duration: 4:59
  • Updated: 29 Feb 2016
  • views: 264
videos
Private equity provides some interesting opportunities for long term investors in the current investing climate, according to one wealth advisor. Chris Dardaman, who co-founded the Atlanta based investment management firm Brightworth, thinks there’s a sizeable premium in the private equity market. ‘The reason is historically 80% of the returns in private equity have come not from P/E expansion, like you’ll see in public markets, but it has come from them actually being able to grow the businesses, and put together acquisitions and make the businesses more efficient.’ Dardaman likes the non-correlated returns in private equity, particularly with the current market volatility. Dardaman said a number of his fund managers are holding higher levels of cash than normal. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
https://wn.com/Private_Equity_May_Offer_Investors_Better_Returns_Than_Stock_Market
Power of Compounding Returns - Equity Stock Investments - bse2nse.com

Power of Compounding Returns - Equity Stock Investments - bse2nse.com

  • Order:
  • Duration: 4:46
  • Updated: 08 Dec 2012
  • views: 18550
videos
Video by http://bse2nse.com This video explains about the power of compounded returns and how equity investments can help you achieve it. For people who are interested in "Art of Stock Investing" and have the patience for long term investing, i strongly suggest you to read my Book @ http://bse2nse.com/archived/3185-book-art-stock-investing-indian-stock-market.html
https://wn.com/Power_Of_Compounding_Returns_Equity_Stock_Investments_Bse2Nse.Com
Return on Investement and Return on Equity (ROI / ROE) - Ratio Analysis

Return on Investement and Return on Equity (ROI / ROE) - Ratio Analysis

  • Order:
  • Duration: 19:06
  • Updated: 26 Feb 2017
  • views: 3717
videos
Download Assignments https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing Explained the concept of Return on Capital Employed / Return on Investment (ROI) and Return on Equity (ROE).
https://wn.com/Return_On_Investement_And_Return_On_Equity_(Roi_Roe)_Ratio_Analysis
Return on capital | Finance & Capital Markets | Khan Academy

Return on capital | Finance & Capital Markets | Khan Academy

  • Order:
  • Duration: 9:50
  • Updated: 30 Aug 2007
  • views: 134912
videos
Introduction to return on capital and cost of capital. Using these concepts to decide where to invest. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/investment-vs-consumption-1?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/human-capital?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: When are you using capital to create more things (investment) vs. for consumption (we all need to consume a bit to be happy). When you do invest, how do you compare risk to return? Can capital include human abilities? This tutorial hodge-podge covers it all. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
https://wn.com/Return_On_Capital_|_Finance_Capital_Markets_|_Khan_Academy
What Is Return On Equity? | TIME

What Is Return On Equity? | TIME

  • Order:
  • Duration: 1:43
  • Updated: 13 Nov 2015
  • views: 1264
videos
And why should you care? Robert McIver, a managing director at Jensen Investment Management, explains what makes a strong return on equity. Read more about return on equity here: http://time. com/money/4077647/return-on-equity-explainer/ Subscribe to TIME ►► http://po.st/SubscribeTIME Get closer to the world of entertainment and celebrity news as TIME gives you access and insight on the people who make what you watch, read and share. https://www.youtube.com/playlist?list=PL2EFFA5DB900C633F Money helps you learn how to spend and invest your money. Find advice and guidance you can count on from how to negotiate, how to save and everything in between. https://www.youtube.com/playlist?list=PLYOGLpQQfhNKdqS_Wccs94rMHiajrRr4W Find out more about the latest developments in science and technology as TIME’s access brings you to the ideas and people changing our world. https://www.youtube.com/playlist?list=PLYOGLpQQfhNIzsgcwqhT6ctKOfHfyuaL3 Let TIME show you everything you need to know about drones, autonomous cars, smart devices and the latest inventions which are shaping industries and our way of living https://www.youtube.com/playlist?list=PL2862F811BE8F5623 Stay up to date on breaking news from around the world through TIME’s trusted reporting, insight and access https://www.youtube.com/playlist?list=PLYOGLpQQfhNJeIsW3A2d5Bs22Wc3PHma6 CONNECT WITH TIME Web: http://time.com/ Twitter: https://twitter.com/TIME Facebook: https://www.facebook.com/time Google+: https://plus.google.com/+TIME/videos Instagram: https://www.instagram.com/time/?hl=en Magazine: http://time.com/magazine/ Newsletter: time.com/newsletter ABOUT TIME TIME brings unparalleled insight, access and authority to the news. A 24/7 news publication with nearly a century of experience, TIME’s coverage shapes how we understand our world. Subscribe for daily news, interviews, science, technology, politics, health, entertainment, and business updates, as well as exclusive videos from TIME’s Person of the Year, TIME 100 and more created by TIME’s acclaimed writers, producers and editors. What Is Return On Equity? | TIME https://www.youtube.com/user/TimeMagazine
https://wn.com/What_Is_Return_On_Equity_|_Time
Return on Equity: The Pros and Cons

Return on Equity: The Pros and Cons

  • Order:
  • Duration: 9:33
  • Updated: 10 Feb 2015
  • views: 1257
videos
Join us in the full discussion on InformedTrades: http://www.informedtrades.com/1975798-return-equity-explained.html Trade with Scottrade, the broker Simit uses for value investing: http://bit.ly/scottrade-IT Screen for value stocks using GuruFocus: http://bit.ly/gurufocus-yt Key Points: 1. Return on Equity is a measure of how efficiently a company is using it's net assets to generate profits. Mathematically, the calculation is as follows: Net Income (Earnings After Taxes) / Shareholders' Equity (Assets - Liabilities) 2. Some rules of thumb regarding Return on Equity: 15% is considered a good performance 30% is considered very good 50% is considered too good to be true 3. Investors who distrust return on equity cite that share buybacks can create the appearance of an artificially high ROE. When companies engage in buy backs, they spend cash -- and thus reduce shareholders' equity -- for shares that are not included in total asset calculations. Buyback activity has grown in the years following the 2008 market crash, and in some instances it has resulted in companies having very high ROE percentages in spite of no meaningful change in their operations that would success their assets are being utilized more efficiently. As such, critics of ROE claim it has outlived its usefulness. 4. A backtest conducted by fatpitchfinancials.com revealed that stocks in the first-4th quintile when ranked by ROE outperformed the S&P 500. Interestingly, stocks in the second and third quintile actually outperformed the stocks in the top quintile (the top 20% of stocks ranked by ROE). This may reinforce the notion that stocks with very high ROE are too good to be true -- in other words, that the number is more a reflection of financial decisions like stock buybacks rather than actual business decisions and profitability. The screener presented in the video is from GuruFocus, which allows for screening by ROE, share buyback percentages, and many other criteria. ROE is a common metric, though, so many free screeners will have it as well.
https://wn.com/Return_On_Equity_The_Pros_And_Cons
Long-Term SIPs In Equity Mutual Funds Pay Off

Long-Term SIPs In Equity Mutual Funds Pay Off

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  • Duration: 12:29
  • Updated: 27 Jan 2017
  • views: 49024
videos
Financial Planner Harsh Roongta explains on Manage Your Money how systematic investment plans or SIPs into equity mutual funds nearly always give positive returns, provided investors are committed and patient. Watch full video: http://www.ndtv.com/video/business/nse-manage-your-money/long-term-sips-in-equity-mutual-funds-pay-off-447301?yt Download the NDTV news app: https://play.google.com/store/apps/details?id=com.july.ndtv&referrer=utm_source%3Dyoutubecards%26utm_medium%3Dcpc%26utm_campaign%3Dyoutube
https://wn.com/Long_Term_Sips_In_Equity_Mutual_Funds_Pay_Off
Tim Bennett Explains: How fixed costs affect equity returns

Tim Bennett Explains: How fixed costs affect equity returns

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  • Duration: 6:32
  • Updated: 21 May 2014
  • views: 941
videos
Operational gearing is a popular piece of jargon used by analysts and journalists. Here Tim Bennett explains what it means and why it matters.
https://wn.com/Tim_Bennett_Explains_How_Fixed_Costs_Affect_Equity_Returns
Stockholders Equity (Rate Of Return On Common Stock Equity, C/S Shareholder Profitability)

Stockholders Equity (Rate Of Return On Common Stock Equity, C/S Shareholder Profitability)

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  • Duration: 7:31
  • Updated: 05 Apr 2013
  • views: 8022
videos
Accounting for rate of return on common stock equity, measures profitability from the common stock shareholders viewpoint, this ratio shows how many dollars of net income the company earned for each dollar invested by the owner, return on equity (ROE) helps investors determine the worthiness of the stock even when the overall market is not doing well, rate of return on C/S equity is based on income that is available to common stock share holders after preferred stock dividend is subtracted from the net income for the period, the basic equation (net income minus P/S dividends/common stock equity minus P/S par value), common stock equity = (C/Spar + C/S APIC + R/E), detailed accounting by Allen Mursau
https://wn.com/Stockholders_Equity_(Rate_Of_Return_On_Common_Stock_Equity,_C_S_Shareholder_Profitability)
Certainty of equity returns over long term

Certainty of equity returns over long term

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  • Duration: 6:14
  • Updated: 23 Sep 2016
  • views: 39
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This video explains what it means to invest in equity and how there is an element of certainty when the investment is retained over a long period of time. It also talks about how investor behaviour does not allow him to reap the fruits of equity investing.
https://wn.com/Certainty_Of_Equity_Returns_Over_Long_Term
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