When there's no difference between the expected return on that of
equities over cash, then why would anybody want to hold equities?
Not exact matches
Officenet's
cash — some $ 20 million left
over from a private
equity investment in 2000 — was safe in a U.S. bank account.
Successful restructuring of operations at the company's Casposo mine in Argentina by experienced local partner Austral Gold Limited may also lead to a further
cash inflow for Troy as Austral have the right to gradually increase their
equity in that project
over time.
By contrast, Japanese households during the same period invested just under 10 % of their assets in
equities and kept
over 50 percent in
cash and deposits, according to Bank of Japan data.
It has now been a little
over a year and I currently have about $ 125,000 USD in the stock market (managed by a financial advisor) and $ 75,000 USD in
cash, no home
equity.
Equities will almost certainly outperform
cash over the next decade, probably by a substantial degree.
Cash alternatives, such as money market funds, typically offer lower rates of return than longer - term
equity or fixed - income securities and may not keep pace with inflation
over extended periods of time.
The new money is coming in the form of a convertible note — a type of loan that eventually converts to an
equity stake — and is meant to hold the company
over until it can become
cash - flow positive.
The stock trades for 20 times earnings and the enterprise value — which is debt plus
equity value — to EBITDA, a proxy for
cash flow, is
over 14.
To date, EquityMultiple's average annual return on
cash - flowing
equity and debt offerings is just
over 9 %.
An early - stage company typically sells its shares (or grants options
over its shares) to its founders and early employees at a very low
cash cost, because they are, in effect, putting their «sweat
equity» into the Company.
Over recent years, more and more plans are offering a suite of low - cost index funds covering domestic
equities, foreign
equities, U.S. taxable bonds, and
cash.
An early - stage company typically sells its units (or grants options
over its units) to its founders and early employees at a very low
cash cost, because they are, in effect, putting their «sweat
equity» into the Company.
Bonds and
cash were always a lousy long - term investment versus
equities over many decades, but
over shorter timescales the apparent return differences didn't seem so vast as they do today.
While the long - term debt /
equity ratio of 1.01 and interest coverage ratio of just
over 8 aren't spectacular, the company also has almost $ 40 billion of
cash and
cash equivalents.
A: Glass Lewis Realizable Pay is calculated
over a three - year period and includes: actual salary received; actual incentive
cash granted and earned; the intrinsic value of time - vesting
equity granted; the intrinsic value of performance - based
equity granted and earned; and all other compensation paid.
But if you need the «cushion» of a sizable bond /
cash portion to handle market turbulence, then your own index portfolio will lag the
equity index performance
over long term.
We remain overweight
equities over both 3 and 12 months and balance this with an underweight in
cash over 3 months and an underweight in commodities and government bonds
over 12 months.
Over more than 25 years, GFI has expanded both organically and through acquisitions into a broad range of markets, including fixed income derivatives,
cash fixed income, emerging market financial products, energy and commodity derivatives, and
equities.
The bank remains «neutral» on
equities over a 12 - month period and continues its «overweight» position in
cash.
He has co-founded, built and / or managed several operating businesses from inception including: SupplierMarket, a supply chain software company with
over 125 employees and investors that included KKR executives and Sequoia Capital, which was sold to Ariba for stock consideration of US$ 924 million; StorageNow, which became one of Canada's largest self - storage companies prior to being sold to InStorage REIT for
cash consideration of $ 110 million; and KGS - Alpha Capital Markets, a U.S. fixed - income broker dealer with
over US$ 230 million of
equity and mezzanine capital, 150 employees and
over $ 130 million in annual revenue.
L.P. executives and Sequoia Capital, which was sold to Ariba Inc. for share consideration implying an enterprise value of US$ 924 million; StorageNow, which became one of Canada's largest self - storage companies prior to being sold to InStorage REIT for
cash consideration of $ 110 million; and KGS - Alpha Capital Markets L.P., a U.S. fixed - income broker dealer with
over US$ 215 million of
equity capital.
Its five - year average return on
equity is 19.8 %, and the company has generously returned
cash to shareholders with buybacks and dividend hikes
over that time frame.
Five of us spent nearly a year and a half of our lives and
over a million dollars in
cash and sweat
equity developing the iFlowReader app with its unique AutoScrolling approach to reading that many of you really like.
Although its unclear the size of the stake the Microsoft currently holds — shares could have been sold or transferred
over the last two years that would modify
equity percentages — the relatively small amount of
cash that B&N is paying Microsoft suggests that Nook Media is not worth all that much.
There are several different ways to make money on residential real estate — amortization (tenant paying down the mortgage, which increases your
equity in the property
over time), depreciation / other tax benefits, appreciation, and
cash flow / income.
«
Over 80 percent of all mortgage holders now have available
equity to tap via first - lien
cash - out refinance or home
equity line of credit,» Black Knight reported.
You could wait to see if the
equity markets improve
over the next year, and just
cash in what your kids need in the immediate future.
For
over half a century, reverse mortgage loans have enabled more than one million senior homeowners to convert a portion of their home
equity into
cash in order to supplement their retirement incomes.
One powerful strategy is the
cash out refinance —
over the years as you build up
equity, you can refinance your loan to access the
equity tax - free.
At a high - level, I see QCOM as a conservatively capitalized (Debt /
Equity = 36 %), free
cash flow generating (FCF = ~ $ 5B 12 - months YTD), financially stable company (A + / Stable, A1 / Stable), who recently grew their dividend by
over 10 %.
The nature of a financing of last resort is that the financier hands
over cash in exchange for cheap
equity that can be recycled into the market.
I am slowly going to dollar cost average into US
equities using VEIPX with the
cash fund I have developed
over the last few months.
Time will show again and again that
equities will be volatile (it might be scary at times) but on the longer term,
equities will always trump
over cash.
Our formula includes free
cash flow to the firm (free
cash flow to
equity shareholders, plus interest expenses), because interest expenses are volatile and hard to predict with accuracy
over the long term.
Still others just need a great way to
cash out
equity in their homes that has been built up
over the years - possibly to make home improvements, do remodeling, buy a car, take a vacation, pay for education, or even to pay down other debts and obligations.
To give a sense of that, we recently did a global screen of nearly 5,800 non-financial companies with market values greater than $ 300 million, positive free
cash flow
over the past 12 months, at least an 8 % return on
equity over the past 12 months, net debt to EBITDA of no more than 2.5 x and a trailing EV / EBIT multiple of no more than 8x.
However,
over time your
equity builds and you can access your
equity via a
cash out refinance or HELOC.
The idea is to increase
equity by paying down debt with the free
cash flow and also to benefit from the asset appreciating
over time.
Over the (very) long run,
equities out - perform bonds and
cash, as is evident below, but may not be practical alternative to bonds for many investors, because of investment horizon, risk - tolerance, dependence on yield, or all the above.
Reverse mortgages allow homeowners (age 62 and
over) to convert a portion of their home's
equity into
cash that generally doesn't need to be paid back as long as the borrower (s) lives in the home.
The three main asset classes -
equities, fixed - income, and
cash and equivalents - have different levels of risk and return, so each will behave differently
over time.
Reverse mortgages are loans that help senior homeowners
over the age of 62 tap into the
equity in their homes and convert it into
cash to use in retirement.
Readily obtainable
cash used by consumers from home
equity extraction doubled from $ 627 billion in 2001 to $ 1,428 billion in 2005 as the housing bubble built, a total of nearly $ 5 trillion
over the period.
Free
cash used by consumers from home
equity extraction doubled from $ 627 billion in 2001 to $ 1,428 billion in 2005 as the housing bubble built, a total of nearly $ 5 trillion
over the period, contributing to economic growth worldwide.
FHA has long been viewed as a safe source for reverse mortgage loans, which allow homeowners of age 62 and
over to pay off their existing mortgages and / or draw on home
equity for
cash income.
The team ranks the stocks in this universe based on a series of growth factors, such as the change in consensus earnings estimates
over time, the company's history of meeting earnings targets, earnings quality and improvements on return on
equity, as well as a series of value criteria, such as price - to - earnings ratio and free
cash flow relative to enterprise value.
Sure, a car title loan with LoanMart will get you
cash in hand (sometimes in as little as one business day3), we must stress that there's a little more to it to that; car title loans are based around the
equity of your drivable motor vehicle and your ability to repay the loan, with LoanMart taking
over the title during your payment period.
While IUL policies can boost the performance of your
cash account
over that of traditional UL, the restrictions on how much you can benefit from market movements in the form of cap and participation rates should be studied carefully when considering a purchase of IUL, given their potential to limit the growth of these
equity indexed accounts.
And your policy may build
cash value — or «
equity» - that can grow
over time.