Value investing, to my mind, attempts to avoid the need for us to be a super forecaster because its fundamental aim is to buy businesses with valuations that impute very dark scenarios for the business and don't require said business to be able to incrementally deploy capital at
high return rates for years into the difficult - to - forecast future to justify today's valuation.
It is considered
a high return rate for a voluntary non-binding poll.
Not exact matches
But as the recovery picks up in housing, pushing prices
higher and cap
rates lower, real estate funds are getting increasingly creative in their quests
for attractive
returns.
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential
for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences
for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange
rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals
for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand
for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16)
returns on pension plan assets and the impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price
for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit
ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate
for our additional capital needs or
for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to
higher interest payments should interest
rates increase substantially; 27) the effectiveness of any interest
rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions
for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange
rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
For instance, you may find that certain products demand higher markups to compensate for their return rat
For instance, you may find that certain products demand
higher markups to compensate
for their return rat
for their
return rates.
Even if your conversion
rate is
high, if the ultimate
return from those conversions is low, you could be spending more
for sales leads than you could ever hope to earn from those leads.
Since those investors are just looking
for the
highest returns, and not say buying bonds their financial advisor told them they needed bonds as part of their retirement planning, they are more likely to jump when
rates rise.
For investors, the potentially
high rates of
return, compared with commercial loan
rates running about 5 percent to 7 percent, have spurred interest despite crude prices under $ 50 a barrel.
Interest
rates: Rattled investors could start demanding
higher returns for lending out their money.
Conventional wisdom would say that the dollar should rise in value if interest
rates rise because
higher rates suggest
higher returns as well as reflect better prospects
for the US economy.
America's creditors might demand a
higher return for their loans, and the Federal Reserve could be forced to hike up interest
rates before the economy is strong enough to do away with cheap money.
They were
rated higher on less sick days, arriving on time
for work daily, and
returning on time from breaks than their co-workers.
Record - low interest
rates also have caused some big institutional investors to search
for returns in the
high - risk,
high - reward world of venture capital.
Quarterly NVCA reports: If the NVCA reports show rising VC - fund internal
rates of
return of
higher than 8 %, it could become be easier
for the funds to go to their limited partners and raise fresh capital.
These firms allow consumers quick, easy access to credit, but in
return offer extremely
high interest
rates, which if not managed properly can cause big problems
for the people taking the loans.
But the G20 also laid the groundwork
for a
return to
higher interest
rates.
Known as the «last mile» problem, the
high costs, in turn, make it difficult
for companies to earn a solid
rate of
return on the installation investment.
With interest
rates at record lows, family and friends may be willing to take a
higher risk
for a
higher short term
return.
Returns are calculated after taxes on distributions, including capital gains and dividends, assuming the
highest federal tax
rate for each type of distribution in effect at the time of the distribution Past performance is no guarantee of future results.
These benefits would (i) largely go to developers and contractors
for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors who are the most plausible sources of incremental infrastructure finance; (iii) not encourage at all the
highest return maintenance projects like fixing potholes that do not yield a pecuniary
return for investors; and (iv) by offering credits at an unprecedented 82 percent
rate, invite all kinds of tax shelter abuse.
All told, we see another coupon - driven year
for high yield with total
returns of about 6 % possible as spreads tighten in line with anticipated modest increases in interest
rates.
While there is a general tendency
for high interest
rates to be associated with depressed valuations and above - average subsequent market
returns, and
for low interest
rates to be associated with elevated valuations and below - average subsequent market
returns, the relationship isn't extremely reliable or linear.
Well, it will certainly lift the
rate of
return investors expect from stocks, but bulls insists that with earnings growing 20 percent this year, the expected
return may be sufficiently
high, so that there will not be any shift out of equities, that corporations are going to make enough money to more than compensate
for higher rates.
The implications of moderately
higher rates: Expect low or negative
returns for government bonds globally in the medium term.
Every defense of current P / E ratios must assume either a
higher long - term growth
rate than is evident from historical data, or it must assume that investors are willing to hold stocks
for a long - term
return of substantially less than 10 %.
The «search
for yield», i.e.
for better
return on financial investments than the declining interest
rate, thus led to the series of bubbles & bursts: deregulated savings & loans (immediately),
high - tech stocks (late 90's), mortgage derivatives — > house prices (2000's).
In
return for that time guarantee, the bank pays you a
higher rate of interest than a typical savings account.
First, the riskiness associated with capital investment might have gone up and so
higher rates of
return could be simply compensating
for higher risk rather than implying attractive investments.
And
for investors who are looking
for somewhere to put their money that provides the
highest rate of
return, stocks can look particularly attractive when
returns on other investments are lower.
These benefits would (i) largely go to developers and contractors
for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors that are the most plausible sources of incremental infrastructure finance; (iii) not encourage at all the
highest return maintenance projects like fixing potholes that do not yield a pecuniary
return for investors; and (iv) by offering credits at an unprecedented 82 per cent
rate, invite all kinds of tax - shelter abuse.
The idea is
for Wall Street to sell all these bad debts to pension funds and say you'll make a
high rate of
return, and then you'll be left holding the bag when it all collapses.
In Chile's case they said nothing about the way this transferred risk from the private to the public sector, even though they defended
high rates of
return as a reward
for the private sector ostensibly taking risks.
Unfortunately, the only cure
for low
returns in bonds is
higher interest
rates.
Although our fund breakdowns were very close, they are getting almost a 2 %
higher personal
rate of
return than I'm getting which has more than made up
for the fee cost.
Admati and Hellwig counter that the only reason stockholders demand such a
high rate of
return from banks is to compensate
for the relative riskiness of banks — and that they are risky precisely because of all the debt they hold on their balance sheets.
Higher rates effected performance, but nominal
returns were still positive because eventually investors were able to make up
for the price losses through the increases in yield.
We simulate failure
rates if today's bond
rates return to their historical average after either 5 or 10 years and find that failure
rates are much
higher (18 % and 32 %, respectively
for a 50 % stock allocation) than many retirees may be willing to accept.
I've often called it the Iron Law of Valuation: the
higher the price you pay today
for a given stream of future cash flows, the lower your
rate of
return over the life of the investment.
For comparison, she also tests long - short quintile carry trade (
high interest
rate currencies minus low interest
rate currencies) and momentum (
high prior - month
return currencies minus low prior month currencies) portfolios.
Thus, if we look at bonds from a historical perspective, interest
rates are very low — which is great
for those borrowing money — but not so great
for those that wish to see
higher rates of interest, and
return, on their money.
Despite a challenging energy market, we believe the management team has a solid plan
for the future, as CEO John Christmann recently changed the company's capital allocation process to better direct capital to the
highest internal
rate of
return projects, regardless of where they are located.
Unlike its successful European counterparts, demand
for higher risk - adjusted
returns, the existence of retrocession fees and stronger desire to retain control, continue to act as headwinds to grow fee - based assets, at a
rate that outpaces private banks» robust AUM growth and regional wealth creation.
If core inflation were to
return above 2 percent and continue trending moderately
higher, it would be a game changer
for rates,» said Graham.
The low interest
rate environment may also have encouraged a shift in investments towards hedge funds as, in the past, hedge funds have achieved
higher average
returns than traditionally managed investments, albeit in exchange
for greater risk.
«We are working to ensure that our financial institutions and other market participants are prepared
for the normalization of monetary policy and the
return to a world of
higher interest
rates,» Fischer said.
Indeed, it's often a mistake to do so: Truly great businesses, earning huge
returns on tangible assets, can't
for any extended period reinvest a large portion of their earnings internally at
high rates of
return.
He also noted that it is a very poor time to buy corporate bonds (
high yield bond index yield 4.93 %) and Gundlach sees a negative
return for the S&P in 2018 as the
rates rout eventually gives the equity market the yips.
For any future stream of income, the
higher the price you pay, the lower the annual
rate of
return you will earn.
We like the Capital One ® Venture ® Rewards Credit Card since it's a great all - around travel credit card with minimum fuss and a
higher than average
rate of
return for travel rewards.
They deliver a predictable
rate of
return that can be
higher than what you receive with a money market account if you go
for longer maturities.