Finding the growth rate for an investment that is compounded or compounded continuously. This video is provided by the Learning Assistance Center of Howard Community College. For more math videos and exercises, go to HCCMathHelp.com.
Views: 2224 HCCMathHelp
This video by Edelweiss Wealth Managements talks about what Compound Annual Growth Rate (CAGR) is, how to calculate CAGR and why it is important to know this parameter. What is CAGR (Compound Annual Growth Rate)? CAGR or Compound Annual Growth Rate is the annual rate which tells us how the company has grown in the past few years and how it is expected to grow. This parameter is helpful in evaluating the performance of a company. CAGR is helpful when the investor wants to know what the revenue trajectory has been during the entire course of his investment. How to calculate CAGR? Given below is the CAGR formula: ((Ending Value of Investment/Beginning Value of Investment)^(1/Number of Years of investment)) - 1 It is also important to know that CAGR is represented in the form of percentage. While the compound annual growth rate helps you understand the trends of the company better, it is always important to know that while CAGR shows geometric representation of your investment, it is merely a representational figure. Also it completely ignores market volatility and can often camouflage the year on year growth patterns. Advantages of CAGR 1. The CAGR formula is useful for evaluating how different investments have performed over time. 2. Investors can use CAGR as a comparison to parameter to decide how one stock has performed in comparison to the others in any group or in a particular market index. 3. You can also compare the historical returns of stocks to that of a savings account or a bond. Risk associated with CAGR 1. Market volatility is an aspect that always needs to be taken into consideration while making an investment. CAGR does not take market volatility into consideration, hence it is should not be the only parameter to be considered by making an investment. Hence, it is important to recognize that while CAGR helps analyse the performance of a company before investing in it's stock, this should not be the sole parameter to consider. A few other parameters like standard deviation, dividend yield, etc. also need to be considered before investing you hard earned money. Connect with us Website: https://www.edelweiss.in/ Facebook: https://www.facebook.com/edelweissonline/ Twitter: https://twitter.com/Edelweissonline YouTube: https://www.youtube.com/channel/UC0ik1TOToNoGQdPsZlDfVPA
Views: 3576 Edelweiss Wealth Management
Sign Up For My FREE Investing For Beginners Course and Finally Beat The Market and Be Profitable! Click Here http://derrickhorvath.com/youtube Are you a growth investor or a value investor? It doesn't matter, and I'll explain why in this video. Can growth companies also be value companies? Text slide: Growth vs. Value A lot of investors either consider themselves growth investors or value investors. But in fact we can find growth stocks that have great value potential. Let me explain... Text Slide: Being a Value Investor When you are a value investor there are no limits on what you can invest in. Text slide to the right listing the following: Large cap, small cap, biotech, oil and gas, new company or old company, it doesn't matter. The whole point of being a value investor is to pay less for something than what it is worth. Or pay less than the fair value. But part of understanding the fair value of a company is first understanding its potential growth rate. Text slide: Know Your Growth Rate There are three common ways to get the growth rate for your company. Text slide: First Method Earnings Per Share The first, is calculating the growth rate of earnings per share. To do this, you simply take the current EPS and subtract the prior year EPS to get your numerator. Then you divide that number by the prior year EPS. The resulting number is your growth rate for the prior year. Keynote slide doing the math or B-roll video of me writing on Notebook. Now, this will just give you the prior year's growth rate. Screenflow of excel while talking: You should also calculate the 10 year average, the 5 year average and the 3 year average to get additional historic numbers. These calculations can be done easily in a software program like Microsoft Excel. Text Slide: Put it all together Once you've calculated your EPS growth rate for all the historic averages, you need to determine a trend or a constant. If the averages are all in the same ballpark then we can use that number for our average growth rate. If the averages are trending up or down you'll want to make a determination of how this might affect the future growth of your company. Text slide: 2nd Method Book Value Per Share The second method is to use the book value per share growth rate. book value per share is essentially what the price of a share of stock is worth by taking the assets minus the liabilities and dividing it by the shares outstanding. B-roll: video of me writing equation on a notebook or Keynote Video Slide You'll do the same exact steps you did for earnings per share and calculate the 4 historic growth rates for book value per share. Again, you'll want to analyze the data for any constants or trends. Text slide: 3rd Method The third and easiest method is to just ask the analysts. Text Overlay: Ask the Analysts You won't actually be talking to a wall street analyst, because financial sites like msn money do all the work for you. Screenflow of how to ask the analysts on MSN money On MSN money just type in the ticker symbol of the stock you want to know about. Click on earnings, then scroll down to look at the growth rate the analysts have given your company.
Views: 60643 Value Investors Daily
Watch more How to Start a Business videos: http://www.howcast.com/videos/410859-How-to-Calculate-Growth-Rate-or-Percent-Change Subtract, divide, and multiply your way to successfully determining how much that increase or decrease really amounts to. Step 1: Subtract the past number from the current number Subtract the past number from the current number. For example if the price of gas this year was $3.25 a gallon and last year it was $2.75 a gallon calculate $3.25 minus $2.75 to equal $0.50. Tip To calculate the predicted percent increase or decrease, subtract the current amount from the future predicted amount. Step 2: Divide Divide the past number from the subtracted amount. From the earlier example, divide $0.50 by $2.75 to equal .1818. Use a calculator if your division skills need sharpening. Step 3: Multiply by 100 Multiply the final number by 100. In the example, the end result equals 18.18. Step 4: Add a percent sign Add a percent sign to the end to finish your calculated percent growth. Our example ends in 18.18 percent. Tip If the final number is negative, the result would be a decline, not a growth. Step 5: Round up or down Round up if the number is five or over and round down if the number is under five. Rounding to the first decimal would equal 18.2 percent or to the nearest whole number, 18 percent. Did You Know? French mathematician Blaise Pascal invented the first adding machine in 1642. It could only perform the mathematical equations of addition and subtraction.
Views: 100440 Howcast
What does CAGR mean? How do I use CAGR in financial analysis? How to calculate CAGR? What is the formula for CAGR in Excel? All of these questions about CAGR will be answered in this video! CAGR is often found in the financial news, more specifically in merger and acquisition announcements, as well as investor presentations where a longer term perspective is taken than just the current year. You might find a CEO or CFO talking about the CAGR of the attractive markets the company competes in, the commitment the company makes on the CAGR of its revenue, and the resulting CAGR in earnings. What is important to understand is that CAGR is never stand-alone, it’s always the CAGR of something: CAGR of estimated market size, CAGR of revenue, CAGR of Earnings Per Share. Very often, CAGR is applied to a 3-year or 5-year period, to zoom out to the bigger picture of the historical financial performance of a company, or its expected future performance. What does the acronym CAGR stand for? CAGR is Compound Annual Growth Rate. If you look up the textbook definition of CAGR, it will tell you that CAGR is the geometric progression ratio that provides a constant rate of return over the time period. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 12501 The Finance Storyteller
A company's growth is really important for Rule #1 Investors to understand because we use the growth rate to calculate how much we should pay for the company. The big four growth rates that we use to find our price are: Sales Growth Rate, Earnings Growth Rate, Equity Growth Rate, and Operating Cash Flow Growth Rate. In today's video, I'll explain why each of these growth rates are important and how we use them in Rule #1 Investing. [FREE Download] The Must-Have Checklist for Investors: http://bit.ly/28Nyy4k _____________ Learn more: Subscribe to my channel for free stuff, tips and more! YouTube: http://budurl.com/kacp Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: + PhilTownRule1Investing Pinterest: http://www.pinterest.com/rule1investing LinkedIn: https://www.linkedin.com/company/rule... Blog: http://bit.ly/27RLvRH Podcast: http://bit.ly/1KYuWb4
Views: 5405 Phil Town's Rule #1 Investing
How to Calculate CAGR for Mutual funds and Shares | What is CAGR | Compound annual growth rate | how to Calculate returns in mutual funds | Understand CAGR in Hindi. -------------------------------------------------------------------------------- Download All Formula Excel https://drive.google.com/open?id=1gs_YFIEorakB9v3hBjPUiH9dx0o9N4-S --------------------------------------------------------------------------------- Share, Support, Subscribe!!! Subscribe: https://goo.gl/yNw13g Youtube: http://www.youtube.com/c/Finbaba Twitter: http://www.twitter.com/finbabaIndia Facebook: http://www.facebook.com/finbabaIndia Instagram: http://instagram.com/finbabaIndia ----------------------------------------------------------------------------------------------------- Subscribe Our Channel click Here for Latest Video https://goo.gl/yNw13g ----------------------------------------------------------------------------------------------------- Related Videos : SIP investment : https://youtu.be/Zh7dmWzqXWY Save Tax under section 80C : https://youtu.be/y5Sat6TcJHs Mutual funds : https://youtu.be/-gP4HfMCeBQ Gold ETFS :https://youtu.be/EPjiho6m1XI Arbitrage fund : https://youtu.be/3oyryG22H4I How to find stop loss : https://youtu.be/jZugeeEVSP0 FCNR account : https://youtu.be/G4GFoQFy_RI Stock Market Tax : https://youtu.be/hcYDeXEW6eY Stock Split : https://youtu.be/NQpW2oBemyk How to Buy Share Onlie https://youtu.be/g8Eb1LVNXM0 What is Cnadle stick https://youtu.be/-Sjhv7h3IT8 ------------------------------------------------------------------------------------------------------- Open Demat account :https://zerodha.com/open-account?c=ZMPASV ------------------------------------------------------------------------------------------------------- About: FinBaba is a you-tube channel, where you can get Information about Banking, finance, Stock market basic and Advance, Forex, Mutual funds and many more. Thanks For Watching this Video. !
Views: 82492 Fin Baba
CAGR or Compounded Annual Growth Rate meaning & calculation in excel is explained in hindi along with Absolute Returns and SAGR i.e. Simple Annual Growth Rate. CAGR can be calculated using the Compound Interest formula or directly in Excel. You can calculate CAGR of Mutual Funds or Stocks investments if you invest in Equity Share Market. Power of Compounding and Time Value of Money also use the CAGR only. Related Videos: Time Value of Money: https://youtu.be/Pazp1b2LhAQ Power of Compounding: https://youtu.be/jNwREK6WnzI सीएजीआर या कम्पाउंडेड एनुअल ग्रोथ रेट का मीनिंग और एक्सेल में कैलकुलेशन हिंदी में समझाया गया है अब्सोल्युट रिटर्न और एसएजीआर अर्थात सिंपल एनुअल ग्रोथ रेट के साथ। CAGR को कम्पाउंड इंटरेस्ट के फार्मूला के साथ या फिर सीधे एक्सेल शीट में कैलकुलेट किया जा सकता है। अगर आप इक्विटी शेयर मार्किट में इन्वेस्ट करते हैं तो आप म्यूच्यूअल फंड्स या स्टॉक्स इंवेस्टमेंट्स के लिए CAGR कैलकुलेट कर सकते हैं। पावर ऑफ़ कम्पाउंडिंग और टाइम वैल्यू ऑफ़ मनी भी सीएजीआर का ही उपयोग करते हैं। Share this Video: https://youtu.be/gs3wLp6bnTQ Subscribe To Our Channel and Get More Property, Real Estate and Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is the meaning of CAGR or compounded annual growth rate? What is SAGR or simple annual growth rate? How to do the SAGR calculation? What is the calculation formula for compounded annual growth rate? What is the different between CAGR and absolute returns? How to calculate CAGR using excel sheet or using compound interest formula? The time period is not considered in the absolute return calculation whereas the compounded annual growth rate calculates the annualized returns. In this video, we will also understand the concept & limitations of these financial terms. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Facebook – https://www.facebook.com/assetyogi Twitter - http://twitter.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Instagram - http://instagram.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Linkedin - http://www.linkedin.com/company/asset-yogi Hope you liked this video in Hindi on “CAGR (Compounded Annual Growth Rate)”.
Views: 12417 Asset Yogi
Compound Growth. Also known as Compound Interest. Part 3 in our ongoing series for people who want to learn all about investing. SUBSCRIBE FOR MORE VIDEOS LIKE THIS: http://www.youtube.com/user/preet182?sub_confirmation=1 SUPPORT MONEY SCHOOL ON PATREON https://www.patreon.com/moneyschool MY BOOK TO LEARN ABOUT THE BASICS OF PERSONAL FINANCE: https://www.amazon.ca/gp/product/0143183516/ref=as_li_tf_tl?ie=UTF8&camp=15121&creative=330641&creativeASIN=0143183516&linkCode=as2&tag=whercom-20 FOLLOW ME ON TWITTER http://twitter.com/preetbanerjee WEBSITE: http://www.preetbanerjee.com
Views: 22636 Preet Banerjee
This video is about how to calculate CAGR or Growth Rate for your investments or schemes like LIC Jeevan Anand. Everyone knows what the interest rate is for Bank FD's, and PPF to name a few investment products. Bank FD offers around 9% and PPF offers 8.7%. Given the interest rate, how to calculate the final maturity amount of an investment? But, the investment cum insurance schemes offered by LIC do not advertise any interest rate that you can expect from their schemes. Because, obviously, it is not going to be fixed; rather dependent on the actual bonus rates declared by LIC every year. As an investor, you must normalize expected returns offered by any investment scheme into a single number and compare it with other products. That number is called "CAGR". CAGR is the Cumulative/Compounded Annual Growth Rate of your investment. In fact, it is same as interest rate as said in Bank FDs. But, here, we ourselves have to calculate annual interest rate, from other parameters. As an example, if you get 2250 back after 3 years with an initial investment of 1000, the CAGR becomes 31.04% Before choosing a plan like LIC's New Jeevan Anand, you may better calculate its expected CAGR and then decide. Of course, CAGR alone cannot be the single deciding factor; you should consider the risks associated with each investment product as well. But one thing is for sure; you cannot ignore CAGR! Link for my last video on how to calculate returns of LIC's New Jeevan Anand policy: https://youtu.be/15dgX1dSsDc Link for the CAGR online tool: http://www.moneycontrol.com/personal-finance/tools/magic-of-compounding-tool.html Stay tuned for such videos: Subscribe to my channel: http://bit.ly/AnandSpeaking Feel free to follow me: https://www.facebook.com/AnandSpeaking https://twitter.com/AnandSpeaking https://anandspeaking.wordpress.com/
Views: 3338 Extended Pages
Financial metrics are the key numbers that you can focus on in financial statements. There are three financial statements, the balance sheet, the income statement and the cash flow that we like to look at to find important metrics. http://bit.ly/2xOCmRl Were going to look at some of the most important financial metrics that you as investors can use to evaluate a company. The first important number we look at on the balance sheet is liquidity. Can the company you’re looking at really cover everything that they need to cover in the next year? Or have they somehow overloaded themselves with short term debt and obligations that they could really run out of cash in the next year? In order to evaluate this, we want to look at the current ratio. Essentially it is a measure of working capital. It compares the current assets, which are assets that can be turned into cash in the next year, with current liabilities, which are obligations that have to be paid in the next year. What you want to look for when evaluating a company is a 2:1 ratio of liquidity to debt. Some companies are very well run that have a lower ratios than that, because they are controlling their cash very well, or they are in an industry that isn’t growing fast so they don’t need as much liquidity. These companies work their capital down so they don’t need as much cash on hand all the time and they can give that money to their shareholders. You will know that these companies are very well run because, they are really big companies. Most companies, particularly smaller companies need at least a 2:1 ratio between current assets and current liabilities. That’s a great measure of liquidity. We call that the liquidity metric. To sign-up for my Transformational Investing Webinar, visit: http://bit.ly/2xOCmRl _____________ Learn more: Subscribe to my channel for free stuff, tips and more! YouTube: http://budurl.com/kacp Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: + PhilTownRule1Investing Pinterest: http://www.pinterest.com/rule1investing LinkedIn: https://www.linkedin.com/company/rule... Blog: http://budurl.com/9elj Podcast: http://bit.ly/1KYuWb4 _____________ finance metrics, key metrics, financial ratios, learn to invest, investing, trading, free cash flow, growth rate, key financial metrics, key financial ratios, top financial metrics,
Views: 126618 Phil Town's Rule #1 Investing
In this Valuation Multiples, Growth Rates, and Margins tutorial, you’ll learn about the relationship between valuation multiples such as EV / EBITDA and companies’ growth rates and margins, and you’ll see which factors influence the valuation multiples. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 3:11 Why Valuation Multiples are Shorthand for a Full DCF Analysis 14:06 Does This Correlation Hold Up in Real Life? 19:40 Recap and Summary Question that came in the other day… “I’m confused about how to interpret valuation multiples. If one company’s EV / EBITDA multiple is higher than another’s, does that mean it is growing more quickly? Or does that just mean its EBITDA margins are higher?” “In other words, are multiples more strongly correlated with growth rates or margins?” This is actually a tough question to answer, but the short answer is that valuation multiples are generally correlated with growth rates because multiples are “shorthand” for a full DCF analysis. So higher FCF growth implies a higher multiple: with higher growth, you could AFFORD to pay more for a company’s cash flows. Multiples: Shorthand for DCF Valuation Remember the formula for Terminal Value: Final Year FCF * (1 + FCF Growth Rate) / (Discount Rate – FCF Growth Rate). This implies that you can get a higher Terminal Value by boosting the FCF growth rate or by reducing the Discount Rate. But when you’re looking a set of comparable public companies, the Discount Rate *should* be about the same for all the companies in the set, since the risk/return profile will be similar for companies of a similar size in the same industry. So… in reality, it is mostly FCF growth that drives a company’s Terminal Value, implied value from a DCF, and therefore its implied valuation multiple(s) as well. What determines FCF and FCF growth? Revenue growth, operating margin, taxes, non-cash charges, Working Capital and CapEx requirements… …But the MAJOR drivers are revenue growth and operating margins (or EBITDA margins). When taken together, Revenue Growth and the Operating or EBITDA margin give you an indication of the company’s Operating Income Growth or EBITDA growth. If margins stay the same, revenue growth will flow down directly to EBITDA growth…. so a company growing revenue at 5% will see EBITDA growth of 5% if its EBITDA margin stays the same. If margins change, anything could happen. Increasing margins and holding revenue growth at the same level will result in FCF growth above revenue growth, for example. But the key point is that it’s NOT about the specific margin the company has – instead, it’s about how those margins are changing over time and how they’re influencing Operating Income or EBITDA growth. For example, a 40% EBITDA margin company and a 20% EBITDA margin company, if they’re growing EBITDA and FCF at about the same rates and they’re in the same industry with a similar size, should be valued at similar multiples. Why? Because investors are willing to pay more for more GROWTH, not more simply because a company currently has more free cash flow. Does This Correlation Hold Up in Real Life? Sometimes it does, but often it does not. For example, in our set of biotech/pharmaceutical comps, we get the following numbers: United: 10% EBITDA Growth, 7x EV / EBITDA Cubist: 14% EBITDA Growth, 21x EV / EBITDA Alexion: 22% EBITDA Growth, 23x EV / EBITDA JAZZ: 36% EBITDA Growth, 11x EV / EBITDA Salix: 41% EBITDA Growth, 10x EV / EBITDA MDCO: 137% EBITDA Growth, 9x EV / EBITDA These are off in real life because of the following factors: Acquisitions – These can distort the EBITDA growth figures and create misleadingly high numbers. EBITDA and FCF Differing Dramatically – They’re often quite far apart, so EBITDA growth doesn’t necessarily trend with FCF growth. Speculative Valuations – In markets like tech startups and biotech/pharmaceuticals, valuation is often highly speculative and linked to the results of clinical trials and so on rather than the pure fundamentals. Mispriced Asset – Or perhaps the company in question really is mispriced and the market is overvaluing it or undervaluing it. RESOURCES: http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-12-Valuation-Multiples-Growth-Rates-Margins-Slides.pdf
Views: 24855 Mergers & Inquisitions / Breaking Into Wall Street
A growth stock and a value stock are considered by most of the world to be very important distinctions between two entirely different kinds of companies. A growth stock is believed to be a company that's growing very quickly and has a high market value relative to its earnings, while a value stock is thought to be a company that doesn't grow much but has a low price and holds its value. In this video, I discuss the important distinctions between the two and let you know which one aligns with the Rule # Investing Strategy. To sign-up for my Transformational Investing Webinar, visit: http://bit.ly/1R6xgk5 Think you have enough money saved for retirement? Learn more: http://bit.ly/1To86wr Don't forget to subscribe to my channel here: http://ow.ly/RNAnK _____________ For more great Rule #1 content and training: Podcast: http://bit.ly/1IBU5ei Blog: http://bit.ly/22x7fzP Twitter: https://twitter.com/Rule1_Investing Google+: +PhilTownRule1Investing Pinterest: https://www.pinterest.com/rule1investing/
Views: 15725 Phil Town's Rule #1 Investing
The CAGR or the compounded annualized growth rate of an investment in a volatile instrument such as stocks or equity mutual fund is explained. A detailed explanation can be found here http://freefincal.com/understanding-the-nature-of-stock-market-returns/
Views: 11751 freefincal - Prudent DIY Investing
A high gross domestic saving rate usually indicates a country's high potential to invest in capital. State two factors that affect the gross savings rate for a country. Explain how a rise in gross savings might not necessarily lead to a rise in a country’s growth rate.
Views: 2257 tutor2u
How is wealth created? Saving and investing is the key to personal wealth as well as the economic growth. Learn Austrian Economics in a fun way! LINKS SUPPORT our project: http://bit.ly/2fgJR9e Visit our website: http://econclips.com/ Like our Facebook page: http://bit.ly/1XoU4QV Subscribe to our YouTube channel: http://bit.ly/1PrEhxG ★★★★★★★★★★★★★★★★★★★★★★★★★★ Music on CC license: Kevin MacLeod: Home Base Groove – na licencji Creative Commons Attribution (https://creativecommons.org/licenses/...) Źródło: http://incompetech.com/music/royalty-... Wykonawca: http://incompetech.com/ Kevin MacLeod: Cambodian Odyssey – na licencji Creative Commons Attribution (https://creativecommons.org/licenses/…) Źródło: http://incompetech.com/music/royalty-… Wykonawca: http://incompetech.com/ Audionautix: TV Drama Version 1 – na licencji Creative Commons Attribution (https://creativecommons.org/licenses/…) Wykonawca: http://audionautix.com/ Audionautix: Yeah – na licencji Creative Commons Attribution (https://creativecommons.org/licenses/…) Wykonawca: http://audionautix.com/ ★★★★★★★★★★★★★★★★★★★★★★★★★★ Econ Clips is an economic blog. Our objetive is teaching economics through easy to watch animated films. We talk about variety of subjects such as economy, finance, money, investing, monetary systems, financial markets, financial institutions, cental banks and so on. With us You can learn how to acquire wealth and make good financial decisions. How to be better at managing your personal finance. How to avoid a Ponzi Scheme and other financial frauds or fall into a credit trap. If You want to know how the economy really works, how to understand and protect yourself from inflation or economic collapse - join us on econclips.com. Learn Austrian Economics in a fun way!
Views: 1088552 EconClips
What do I do? Full-time independent stock market analyst and researcher: https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative stock list table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More about me and some written reports at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/ Growth stocks have performed extremely well in the last 8 years and beaten the stock market. Nevertheless, it is very important to know how to analyze growth stocks in order to understand the investing risks and rewards. I discuss an example of the importance of the growth rate and how it impacts the stock price and valuations. I use Amazon stock (AMZN) as an example. When analyzing a growth stocks the most important thing to look at is the change in the growth rate as the consequences are significant even if it might not look like that.
Views: 2736 Invest with Sven Carlin, Ph.D.
Check out my Blog: http://exceltraining101.blogspot.com If you're familiar with business metrics or taken a business strategy course, you may have come across CAGR. It's a derived number to is used to average out the growth rate of a product or investment over a span of time. There is actually a formula that you can do by hand to calculate CAGR, but why do that when you have Excel! See the video to learn how to calculate compounded annual growth rate (CAGR) with a formula and ALSO create your own function in Excel. #exceltips #exceltipsandtricks #exceltutorial #doughexcel
Views: 81417 Doug H
What does earnings per share represent in the world of investing? In this video I explain this invaluable term and how knowing what it is on a company by company basis can help you greatly when it comes to understanding a stock or business. http://bit.ly/2ERUMyK Are you looking to start investing? Download my FREE investing quick start guide by clicking the link above. Looking to master investing? Attend one of my FREE 3-Day Transformational Investing Workshops. Apply here http://bit.ly/r1workshop _____________ Learn more: Subscribe to my channel for free stuff, tips and more! YouTube: http://budurl.com/kacp Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: + PhilTownRule1Investing Pinterest: http://www.pinterest.com/rule1investing LinkedIn: https://www.linkedin.com/company/rule-1-investing Blog: http://bit.ly/1YdqVXI Podcast: http://bit.ly/1KYuWb4 eps, financial reporting, financial statements, growth rate, valuation of a company, stock market, investing basics,
Views: 27681 Phil Town's Rule #1 Investing
Remember our simplified Solow model? One end of it is input, and on the other end, we get output. What do we do with that output? Either we can consume it, or we can save it. This saved output can then be re-invested as physical capital, which grows the total capital stock of the economy. There's a problem with that, though: physical capital rusts. Think about it. Yes, new roads can be nice and smooth, but then they get rough, as more cars travel over them. Before you know it, there are potholes that make your car jiggle each time you pass. Another example: remember the farmer from our last video? Well, unless he's got some amazing maintenance powers, in the end, his tractors will break down. Like we said: capital rusts. More formally, it depreciates. And if it depreciates, then you have two choices. You either repair existing capital (i.e. road re-paving), or you just replace old capital with new. For example, you may buy a new tractor. You pay for these repairs and replacements with an even greater investment of capital. We call the point where investment = depreciation the steady state level of capital. At the steady state level, there is zero economic growth. There's just enough new capital to offset depreciation, meaning we get no additions to the overall capital stock. A further examination of the steady state can help explain the growth tracks of Germany and Japan at the close of World War II. In the beginning, their first few units of capital were extremely productive, creating massive output, and therefore, equally high amounts available to be saved and re-invested. As time passed, the growing capital stock created less and less output, as per the logic of diminishing returns. Now, if economic growth really were just a function of capital, then the losers of World War II ought to have stopped growing once their capital levels returned to steady state. But no, although their growth did slow, it didn't stop. Why is this the case? Remember, capital isn't the only variable that affects growth. Recall that there are still other variables to tinker with. And in the next video, we'll show two of those variables: education (e) and labor (L). Together, they make up our next topic: human capital. Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/23B5u4b Next video: http://bit.ly/1Sdlrvx Help us caption & translate this video! http://amara.org/v/IM5L/
Views: 255148 Marginal Revolution University
In this video, we use the miracle of compounding to explain why it’s so important to save early and often. Consider these two scenarios: First, meet Myopic Mary. She starts saving in her 30s, and by 45 years old she has $20K. Her intended retirement age is 65. Mary invests her money in a retirement fund with a 7% annual rate of return. She doesn’t touch the money until retirement. How much will she have by then? To get our answer, we’ll use the Rule of 70. The Rule of 70 lets you approximate the time it’ll take for an investment to double, given a specified rate of return. To apply this rule, you divide 70 by the rate of return, and it’ll tell you the years needed for the doubling. In Myopic Mary’s case, her investment will double every decade. With 20 years to save, she’ll have roughly $80K by retirement. Imagine though, that Myopic Mary goes back in time, becoming Meticulous Mary. Meticulous Mary starts saving in her twenties. By 35, she has the same $20K to invest for retirement. Based on the Rule of 70, it’ll still take 10 years for her money to double. But Meticulous Mary has a longer time horizon, from 35 to 65 years old. Thus, her money will double three times. Her final investment value will be $160K, compared to Myopic Mary’s $80K. That improved result comes through the miracle of compounding. Compounding gives you defined points where your money grows exponentially. The longer the time horizon, the more growth that occurs. Now—where does opportunity cost fit into this? Well, for every dollar Myopic Mary invested at 45, that turned into four dollars by the time she was 65. For Meticulous Mary, every dollar invested at 35, turned into eight dollars by retirement. That’s called winning the opportunity cost battle, through compounding. Like we said, the right course is to save early and save often. Want to learn more about savings? In future videos we’ll tackle some savings tips and common retirement plans. Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Money Skills Course: http://bit.ly/2aZfRvy Ask a question about the video: http://bit.ly/2cNk1rD Next video: http://bit.ly/2d1RtML
Views: 27354 Marginal Revolution University
This algebra & precalculus video tutorial explains how to use the compound interest formula to solve investment word problems. This video contains plenty of examples and practice problems for you to work on. Here is a list of topics: 1. Compound Interest Explained - Formula & Equations 2. Compounded Monthly, Semi Annually, Quarterly, Daily, Weekly and Compounded Continuously 3. Compound Interest Word Problems - Investment, Mutual Funds, Savings Account, and Index Annuity 4. Logarithms - Solve for t 5. Compound Interest - Solve for r using e 6. Future Value vs Present Value - Math Problems
Views: 232641 The Organic Chemistry Tutor
We review the *intuition* behind the Gordon Growth Formula used to calculate Terminal Value in a Discounted Cash Flow (DCF) analysis. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Lots of people, textbooks, training programs, professors, and so on present this formula, but hardly anyone takes the time to explain what it means, where it comes from, and how it works. We'll explain here both the INTUITION behind the formula, and then also give a mathematical derivation for it, based on the sum of a geometric series. If you like math, you'll really like that part! Here's the Table of Contents for the lesson: 1:12 Gordon Growth Method Intuition 2:37 The Intuition -- No Growth in Cash Flows 7:46 The Intuition -- Growth in Cash Flows 15:23 The Algebra Behind Gordon Growth 17:40 The Common Ratio 18:41 The Algebra: Putting It All Together 22:49 Gordon Growth Method Summary Gordon Growth Method Intuition The basic intuition here is that we can pay: Annual Free Cash Flow / Discount Rate For an investment, if the cash flow stays the same each year and we're targeting a specific yield on our investment (known as the "discount rate" in a DCF). Why? Think about if you could make an investment that earned $100 in cash flows each year. You're targeting a 10% yield on your investment. How much could you pay for it? $1,000, because $1,000 * 10% = $100 in cash flows each year. You can use the NPV function in Excel with $100 in cash flow each year (e.g., =NPV(10%, Long series of $100 you've entered in consecutive cells)) to verify this. The NPV, or "net present value," IS this number - what we could afford to pay for a series of cash flows at a given yield we're targeting. The Intuition -- Growth in Cash Flows This works fine if there's no growth and the cash flows stay the same each year, but what if they're growing? Well, in that case we can afford to pay MORE than that $1,000 and still get the same 10% yield... because there's growth! Specifically, we can now pay: First Year Free Cash Flow / (Discount Rate - FCF Growth Rate) for this investment. In the Terminal Value calculation, that "First Year Free Cash Flow" is written as Final Year Projected Free Cash Flow * (1 + FCF Growth Rate)... ...because we're going one year BEYOND the end of our projection period in the model. By *subtracting* the growth rate in the denominator, we make the denominator smaller... which makes the amount we can pay significantly bigger. If cash flows grow more quickly, the denominator gets even smaller and the entire number gets even bigger. If cash flows grow more slowly, the denominator gets bigger and the entire number gets smaller. Let's say the cash flows start at $100 and grow by 3% per year. We're targeting a discount rate of 10%. The NPV here would be $1,429, or $100 / (10% - 3%). Why does this work? Why can we pay $1,429 and still get that 10% yield? Think about it like this... The yield in Year 1 is is $100 / $1429, or 7.0% But then by Year 5, it's $113 / $1429, or 7.9%. And then as you keep going, the Yield gets higher and higher... because we have growth. By Year 20, it's $175 / $1429, or 12.3%. So, over all those years into the future, the average comes out to 10%... because it's LESS than 10% in the early years and greater than 10% much later on. So the weighted average, factoring in the time value of money, still comes out to that 10% yield we were targeting. The Algebra Behind Gordon Growth Please see the video for this part - it's almost impossible to explain in text form, and it would be too long to post in the YouTube description. Gordon Growth Method Summary We care about this because everyone uses this formula to calculate Terminal Value in a DCF, but hardly anyone explains where it comes from. The basic idea is that you can pay more for a company that's growing its cash flows than for one that's NOT growing its cash flows. And to represent that, you use the formula: Final Year, Projected Period Free Cash Flow * (1 + FCF Growth Rate) / (Discount Rate - FCF Growth Rate) To approximate the amount you could pay for the Free Cash Flows in the Terminal Period - which is the Terminal Value in a DCF.
Views: 46879 Mergers & Inquisitions / Breaking Into Wall Street
청년실업의 현주소 그리고 원인은? March is an especially busy month for young job seekers in Korea. This is when many conglomerates like Samsung hold open recruitment. However, according to our Ko Roon-hee, the latest employment figures painted a grim picture for them. Last year wasn't easy for 27-year-old Park Ji-hyeon. Park has been looking for a job since she graduated college last year... and regularly spend around 8 hours everyday studying or preparing for employment tests. She says there are two main difficulties when looking for a job in Korea. "Money is the first problem. You need certificates in English to get a job, but it costs a lot of money to take the tests and prepare for them. Second of all, I'm nervous because I don't have a job." Park is not the only one feeling that stress. According to Statistics Korea, youth unemployment last year was at 9-point-5 percent. Although the figure was down slightly from the previous year, it's still higher than in other advanced countries like the United States, Germany or Japan. Economists say it's because companies are investing less. "Last year, there was a decline in companies' investment in both facilities and construction. This means fewer jobs are created. Also, both Korean and global economies are experiencing slower growth." Separate data from the Korea Economic Research Institute provides specific reasons why companies are not increasing recruitment. Based on a survey in February of Korea's top 500 firms by sales with more than 300 employees, more than 30 percent of companies said they're experiencing difficulties such as restructuring...and more than 20 percent blamed the worsening economy. So what are some sectors that young people can find jobs in? A manager at local job portal says… companies are showing aggressive hiring efforts in fields related to the 4th industrial revolution. "In manufacturing, new jobs are being created in fields related to electric and hydrogen vehicles. In the financial field, blockchain and fintech are some sectors that are increasing recruitment." This manager went on to say that it'll be a big help to pay attention to the changes in recruitment methods... such as Hyundai Motor Company announcing that it'll be hiring people all year round... instead of just during designated periods such as the month of March. Ko Roon-hee, Arirang News. Arirang News Facebook: http://www.facebook.com/arirangtvnews
Views: 48 ARIRANG NEWS
http://www.fool.com - Motley Fool Co-Founder David Gardner explains how to calculate a company's growth rate and why you need to know it. Visit http://wiki.fool.com/Growth_rate for more.
Views: 6288 The Motley Fool
In the world of dividend growth investing, as the name implies, it's all about how quickly (and predictably) a company can grow its dividend over the long term. In my stock selection and analysis, I typically strive for a 7% growth rate in dividend yield (per year, in perpetuity). And, this is often a reality in my two favorite sectors: consumer non-cyclical and healthcare. However, across other sectors, dividend growth rates vary dramatically. Today's video covers: 1) Why dividend growth rate varies by sector. 2) How payout ratio (dividends / net earnings) affects the ability for a company to grow its dividend over time. 3) Why starting yield (typically a reflection of sector and payout ratio) also indicates the propensity (or lack thereof) for a dividend to grow over time. After covering these high level frameworks, I dive into specific sectors, and the ranges of dividend growth that I'm personally comfortable with by sector. Sectors covered include: * Consumer non-cyclical * Healthcare * Technology * Utilities * Energy * Industrials * Retail * Restaurants * Finance * REITs In my personal stock portfolio, I have coverage across all of these industries. Learn how I like to model dividend growth in each industry differently. Learn how I personally think about each industry. As a related video, check out my thoughts on PE ratio ranges by sector, for dividend growth investors: https://www.youtube.com/watch?v=JUmgT75dBKI Disclaimer: I'm not a licensed investment advisor, and today's video is just for entertainment and fun. This video is NOT investment advice. Please talk to your licensed investment advisor before making any financial decisions. All content on my YouTube channel is (c) Copyright IJL Productions LLC.
Views: 3423 ppcian
The compound annual growth rate is a business and investing specific term for the smoothed annualised gain of an investment over a given time period. CAGR is not an accounting term, but remains widely used, particularly in growth industries or to compare the growth rates of two investments. CAGR is often used to describe the growth over a period of time of some element of the business, for example revenue and units delivered. Reference: http://en.wikipedia.org/wiki/Compound_annual_growth_rate - created at http://goanimate.com/
Views: 19216 B2Bwhiteboard
We look at the effect of a change in the savings rate on the solow model. What is the effect on Aggregate Output, Capital, Investment and Consumption, per-capita output, capital, investment and consumption, and per-effective-worker capital and output of an increase in the savings rate? We work with the 'full' solow swan model with labor-augmented technology growth and population growth. More Videos on the Solow Model: https://sites.google.com/site/economicurtis/intermediatemacro/solow _______________ Video Outline Solow Diagram Time Series --Per-effective workers, k ̂,y ̂ --Per-Capita Levels, k,y,i & c --Aggregate Levels, Y,K
Views: 18472 economicurtis
Related Videos on Compound Interest: https://www.youtube.com/playlist?list=PLJ-ma5dJyAqr7d1tGqa6ky0VEyIVvrBiU
Views: 8833 Anil Kumar
This video shows how to calculate the geometric average return (also known as the compounded annual return) of a stock or index. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 24364 Edspira
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.
Views: 131631 Preston Pysh
You’ll learn how to select a Terminal Multiple for use in a DCF in this lesson. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" This training includes how you can check the long-term Free Cash Flow growth rate implied by the Terminal Multiple, how to use data from the comparable public companies, and how to draw conclusions about your analysis with these formulas. Table of Contents: 2:16 Why Most Sources Get This Explanation Wrong 6:33 How to Determine the Growth Rate Implied by a Terminal Multiple 14:46 How to Use the Implied Growth Rate in a DCF 17:09 Conclusions From This Analysis 20:03 Summary Lesson Outline: How Do You Pick the Terminal Multiple in a DCF? Idea: For the Terminal Value, you need to estimate the company's value in the "far future" period… what are all those cash flows worth if you go past Year 5 here, or if you go past Year 10 in a 10-year model? Two methods: the Multiples Method, where you assign an EBITDA multiple to the final year EBITDA, assume the company gets sold, and value it like that; or the Gordon Growth or Perpetual Growth or Long-Term Growth Method, where you assume it operates indefinitely. Need to make sure both methods make sense by themselves, and that the implied multiple and the implied growth rate from both methods seem reasonable. The Multiples Method – Selecting a Multiple You might START by getting the median EBITDA multiple or range of multiples from the set of public comps, and then applying them to this company’s appropriate figure in the final projection year… BUT… You generally want to assume a discount over historical multiples, and even over forward multiples. Why? 1. Multiples generally decline over time as companies get bigger and growth slows down, so investors won't pay as much. 2. The "Terminal Multiple" must imply a reasonable Terminal Growth Rate… if you get something like a 10% FCF growth rate implied by your Multiple, you should be VERY suspicious - no company has ever grown at that rate for decades! (Of course, this also depends on the discount rate - with a higher discount rate, higher growth might be justified.) 3. You also care more about the RANGE of Terminal Values and implied Enterprise Values from a RANGE of reasonable multiples (ex: 25th to 75th percentile of comps, modestly discounted). How do you get the implied Terminal Growth Rate from a Terminal Multiple? Implied Terminal Growth Rate = (Terminal Value * Discount Rate – Final Year FCF) / (Final Year FCF + Terminal Value) Derivation: Please see the PowerPoint slides or PDF at the top. You start out with the familiar Terminal Value formula, Final Year FCF * (1 + Growth Rate) / (Discount Rate – Growth Rate), and then use algebra to get the Growth Rate on one side of the equation. You have to go through a few steps to do this, but it’s fairly simple algebra. How do you decide if this is an “appropriate” implied Growth Rate? It should ideally be LESS than the GDP growth rate of the country this company is in, which means a very low percentage in most developed countries (e.g., less than 3% in the US) because all companies slow down to the rate of growth of the overall economy, or less, in the long-term. You could also look at the expected long-term FCF growth rates of comparables, or the growth rates implied by their multiples. Some people also use other macroeconomic indicators like the inflation rate as a guideline. Conclusions From This Analysis: The baseline multiple of 5.9x we used isn't "wrong" necessarily, but we should probably project further into the future and create a 10-year DCF because the NPV of the Terminal Value comprises over 70% of the total implied value right now – it should ideally be ~50% or less. We should also probably pick narrower ranges for these tables – 4.5x to 8.5x is too wide a range and may not even be meaningful. And… the company was almost certainly overvalued at the time we did this analysis, since nearly all the values were below the current share price of $17.87. We only get values above $17.87 if the assumptions are *very* optimistic, indicating that the company is overvalued or that our assumptions such as the discount rate are incorrect. http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-07-Terminal-Multiple-DCF.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-07-Terminal-Multiple-DCF.pptx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-07-Terminal-Multiple-DCF.pdf
Views: 27484 Mergers & Inquisitions / Breaking Into Wall Street
Economic Growth and the Investment Decisions http://irfanullah.co/
Views: 16546 IFT
Phil and Danielle discuss the importance of growth rates to judge the quality of a business. Plus, a big announcement about the Rule #1 Toolbox. Podcast Show Notes: http://bit.ly/1P4Arcb To sign-up for my Transformational Investing Webinar, visit: http://ow.ly/ScXbJ Don't forget to subscribe to my channel here: http://ow.ly/RNAnK _____________ For more great Rule #1 content and training: Podcast: http://bit.ly/1hpag19 Blog:http://bit.ly/1hpasNR Transformational Investing Workshop: http://ow.ly/ScX3p Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: +PhilTownRule1Investing Pinterest: https://www.pinterest.com/rule1investing/
Views: 2798 Phil Town's Rule #1 Investing
Mutual funds are one of the best option for investing money. In this video I have Explained about mutual funds. This video is a beginner guide for mutual funds investments. you can start investing in mutual funds through SIP (Systematic Investment Plan ) with 1000 Rs per month To watch new videos subscribe and click bell icon नई वीडियो देखने के लिए मेरे चैनल को सब्सक्राइब करे https://www.youtube.com/channel/UCrBPaqNc8SP3K0Q_LFJlhIg?sub_confirmation=1
Views: 2192687 Tech Indian
Higher Indian economic growth rate can be achieved only through higher investment in health and education: Microsoft co-founder Bill Gates said in an exclusive interview with DD News ‘DD News’ is the News Channel of India's Public Service Broadcaster 'Prasar Bharati'. DD News has been successfully discharging its responsibility to give balanced, fair and accurate news without sensationalizing as well as by carrying different shades of opinion. Follow DD News on Twitter (English): https://twitter.com/ddnewslive Twitter (Hindi):https://twitter.com/DDNewsHindi Face Book: https://www.facebook.com/DDNews Visit DD News Website (English): www.ddinews.gov.in Visit DD News Website (Hindi): http://ddinews.gov.in/Hindi/
Views: 1847 DD News
OptionsHouse (Discount Link): http://reddysetgo.com/visit/optionshouse/ My other recommended brokerage firms are: TradeKing: http://reddysetgo.com/tradeking Motif Investing: http://reddysetgo.com/motif Subscribe to my personal finance newsletter: http://rsg2.launchrock.com/ Generating passive income isn't a job, it's a mindset. Everything you do in life can take on a passive income mindset and help diversify your income streams for years to come. This includes your investment strategies. Trading stocks can be risky and requires a lot of luck. By implementing a dividend growth investing strategy, you can turn your portfolio into a cash flow machine that will one day generate monthly passive income you can live off of. But, there are a few tricks to setting up your dividend growth investing strategy. First and foremost, you should always reinvest dividends until you need the dividend income.The growth rate when you reinvest and you don't reinvest is outrageous. Don't make the mistake of taking dollars now, when they can be working 5 times as hard for you in the future. (Images in the presentation) Second, you should always be looking for solid companies with a history of dividend growth and payouts. No point in investing in a company if their dividend isn't stable and they don't have a track record of paying them every quarter. And third, always make sure to think about your portfolio in the long run. The goal isn't to make hard earned money now. Instead, think of it form the long run and imagine how great it will be 10-15 years from now when the companies in your portfolio are paying you a quarterly dividend. That's the true definition of passive income! Well there you go! For more, check out my blog at www.reddysetgo.com There's a bunch of articles, videos and case studies on dividend growth investing and passive income. I even publish my dividend portfolio on there for all to see. Come check it out!
Views: 57354 Reddy Set Go
The expansion of cities and ongoing productivity growth in India continue to be the key long-term drivers for the world’s fastest growing economy.
Views: 641 Macquarie Group
After a stabilized 2016 that saw Kenya’s GDP grow to 5.9%, experts are anticipating a growth rate of 5.4 to 5.7% in 2017 supported by a stable Marco -economic environment, despite declining private sector credit growth which will impact businesses negatively. According to investment firm Cytonn, politics are set to take center stage and be among the key determinants of spending and government policy. This will in the long run lead to an increase in government spending on infrastructure. The private sector is expected to continue attracting global capital flows with a preference towards the financial services and information and technology sectors, while real estate is expected to maintain a high performance. Regionally, sub-Saharan Africa is expected to register the slowest growth in 2017 estimated at 1.4% according to international monetary fund brought about by a slowdown in some of the largest economies in the region like Nigeria and Angola that rely on commodities. However, IMF projected that SSA region will grow by 3.0% in 2017. SUBSCRIBE to our YouTube channel for more great videos: https://www.youtube.com/KTNkenya Follow us on Twitter: https://twitter.com/KTNNews Like us on Facebook: https://www.facebook.com/KTNNewsKenya For more great content go to http://www.standardmedia.co.ke/ktnnews and download our apps: http://std.co.ke/apps/#android KTN News is a leading 24-hour TV channel in Eastern Africa with its headquarters located along Mombasa Road, at Standard Group Centre. This is the most authoritative news channel in Kenya and beyond.
Views: 549 KTN News Kenya
Welcome to my world of stocks!!! My name is Ale, and today, we are talking about how to build a dividend growth portfolio in 2019 and beyond! Hope you enjoy the video! :) Ale's World of Gaming: https://www.youtube.com/channel/UCMKtuOtV5ELuGcH8lsWXjwQ Thanks for watching and please subscribe!!! :) Good Websites: https://www.nasdaq.com https://www.fool.com https://www.simplywall.st.com https://www.seekingalpha.com ***Please be advised that I am not giving any financial or investing advice. I am not telling anyone how to spend or invest their money. Take all of my videos as my own opinion, as entertainment, and at your own risk.***
Views: 25280 Ale's World of Stocks
You can download a free list of Russell 2000 stocks here: https://www.suredividend.com/russell-2000-stocks/ Many investors focus on large-capitalization stocks, which are loosely defined as stocks with more than $10 billion of market capitalization. While this strategy works for most, it has the effect of artificially narrowing your investment universe. Moreover, the rise of online brokers, index funds, and other passive investment products has made it easier than ever to invest in small cap stocks. In this video, I explain the advantages of investing in small cap stocks. What are Small Cap Stocks? To begin, let’s talk about the definition of a small-cap stock. Small cap stocks are defined as stocks with market capitalizations between $250 million and $2 billion. Stocks that are smaller than this are called microcaps or nanocaps, while stocks that are larger than this are called midcaps or largecaps. ------------------------------------------------------ Reason #1: A Broader Investment Universe The first reason why investing in small-cap stocks is attractive is because of the sheer number of companies that dwell in the small-cap space. This is appealing from the perspective of diversification, and also because it allows you to be more selective when hunting for investment opportunities. For evidence of this broader investment universe, consider the major market indices for large-cap and small-cap stocks. The main index for small-caps is the Russell 2000, which contains about 2000 companies. The main index for large-cap stocks is the S&P 500, which contains about 500 companies. Said another way, the small-cap stock universe contains about four times as many companies as its large-cap counterpart. ------------------------------------------------------ Reason #2: A Less Efficient Market Small-cap stocks receive much less attention from the financial markets. They receive less analyst coverage and less consideration from the media. What this means for investors is that small-cap stocks can remain quite mispriced for prolonged periods of time. When large-cap stocks become disconnected from their intrinsic value, investors quickly take notice. This is not the case in small-cap stocks, which creates opportunities for self-directed investors to acquire shares below their intrinsic value and profit from potential valuation expansion. ------------------------------------------------------ Reason #3: No Institutional Ownership On the surface, it may not be clear why a lack of institutional ownership in small-cap stocks is beneficial for self-directed investors. It comes down to the fundamental principles of supply and demand. When institutions begin to buy a stock – particularly a small-cap stock – it creates significant buying pressure in the market. This increases stock prices. As we know, higher prices result in lower future returns, all else being equal. Small-cap stocks do not have this problem. They are outside the realm of most institutional investors, which creates more favorable prices for investors that are willing to venture into this space. In fact, one of the “sweet spots” of investing is when a small-cap business grows to the point that it is included in some of the major market indices. This means that a great number of ETF providers and other passive investment products are forced to buy the stock, which drives its price higher. A recent example occurred when it was announced that Walgreens was joining the Dow Jones Industrial Average. Walgreens’ stock rose by 4% on the day of the announcement. ------------------------------------------------------ Reason #4: Small-Cap Stocks Naturally Have More Upside Some of the best gains that are available in the stock market are when investors can purchase shares in an attractively-valued business, and then that business sustains a high growth rate for a very long period of time. In fact, each of the world’s largest businesses grew to their current size by following this blueprint. However, large companies are limited in how much they can grow. Apple has a market cap of nearly $1 trillion dollars. It is unlikely that the company will double in size over the next several years. Instead, shareholder returns will come from dividend payments, share repurchases, and perhaps some modest business growth. Small cap stocks have a completely different total return profile. Their growth potential is much greater, which often creates spectacular returns for investors that have the ability to recognize these businesses early. If you do not have this ability, passive funds that track the Russell 2000 index will also capture this growth.
Views: 2575 Sure Dividend
But for the same reason that the finance minister cited... and slowing exports，... global investment banks have doubt... over whether Korea will be able to reach its growth target for 2015. Our Kim Min－ji tells us more. Korea′s growth forecast for the second quarter is not so rosy. Citing 14 global investment banks， Bloomberg says the Korean economy is expected to grow an average of 2－point－7 percent in the second quarter from a year earlier. Barclays′ projection was the highest， at 3－point－1 percent，... while Nomura and IHS Economics both predict the economy will grow 2－point－4 percent. The Korean economy posted 2－point－5 percent growth in the first quarter，... and the dull projections for the second have raised questions about whether Korea will be able to reach its growth target of 3－percent for the year. The banks cited an unexpected drop in spending and a blow to the tourism industry due to the MERS outbreak， as well as a decline in exports， as some of the main factors. An economist from Morgan Stanley， for one， warned that Korea′s growth rate for exports could dip to levels not seen since the global financial crisis. This comes amid the general slowdown in the global economy，... especially in China which is Korea′s main trading partner. The weak Japanese yen has also eroded the price competitiveness of Korean exports. The expert predicts the country′s exports will fall 3－point－1 percent in the second half of the year. Considering the figure fell 5－percent in the first half，... Korea′s exports are expected to record minus 4－percent growth this year the lowest since the 2009， when exports fell almost 14 percent. To reverse the trend， some of the banks called for more expansionary measures to prop up growth. HSBC said more rate cuts are needed in addition to a planned budget supplement of about 10 billion U.S. dollars by the Korean government. ANZ Bank also said without a sufficient level of support from the government，... Korea will not be able to reach 3－percent growth in 2015. Kim Min－ji， Arirang News.
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This video shows how the arithmetic return and geometric return (aka compound annual return or compound annual growth rate) can yield very different rates of return. This occurs because the arithmetic rate of return does not account for the effects of volatility and compounding. For practical purposes, the arithmetic average return is best used when forecasting future, expected returns while the geometric return is superior for examining the historical performance of a stock or index. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 15429 Edspira
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The Harrod–Domar model is a classical Keynesian model of economic growth. It is used in development economics to explain an economy's growth rate in terms of the level of saving and productivity of capital. It suggests that there is no natural reason for an economy to have balanced growth. The model was developed independently by Roy F. Harrod in 1939, and Evsey Domar in 1946, The Harrod–Domar model was the precursor to the exogenous growth model. The Harrod Domar Model suggests that economic growth rates depend on two things. Level of Savings (higher savings enable higher investment) Capital-Output Ratio. A lower capital-output ratio means investment is more efficient and the growth rate will be higher. Assumptions of the Harrod-Domar model. (i) A full-employment level of income already exists. (ii) There is no government interference in the functioning of the economy. (iii) The model is based on the assumption of “closed economy.” In other words, government restrictions on trade and the complications caused by international trade are ruled out. (iv) There are no lags in adjustment of variables i.e., the economic variables such as savings, investment, income, expenditure adjust themselves completely within the same period of time. (v) The average propensity to save (APS) and marginal propensity to save (MPS) are equal to each other. APS = MPS or written in symbols, S/Y= ∆S/∆Y (vi) Both propensity to save and “capital coefficient” (i.e., capital-output ratio) are given constant. This amounts to assuming that the law of constant returns operates in the economy because of fixity of the capita-output ratio. (vii) Harrod-Domar model is a longrun term growth model. (viii) Income, investment, savings are all defined in the net sense, i.e., they are considered over and above the depreciation. Thus, depreciation rates are not included in these variables. (ix) Saving and investment are equal in ex-ante as well as in ex-post sense i.e., there is accounting as well as functional equality between saving and investment. These assumptions were meant to simplify the task of growth analysis; these could be relaxed later. (x) General price level is constant and money income and real income is equal to each other. (xi) Interest rate is constant.
Views: 8140 Know Economics