You will learn why it matters so dearly
the price you pay for your assets and the importance of having a margin of safety.
Add up
the prices paid for all assets currently being depreciated (note this is done on a cost basis rather than using the value of assets after depreciation).
You state, «It's
the price you pay for an asset vs the net anual returns.»
Not exact matches
The difference in
price between B.C. gas and global LNG wouldn't be high enough to
pay for the operating and capital costs of pipeline and liquefaction
assets.
«There are many who would
pay a high
price (
for upstream BASF
assets).
ETF sellers argue that their fees are a small
price to
pay for access to
assets that hold their value when stocks fall.
That means that
for the
assets that do get bought, higher
prices are being
paid.
As explained, this trick works
for the cheat who
pays an excessive purchase
price for the acquired company, then buries the excess as an intangible
asset such as goodwill in the financial statements.
Debt leveraging inflates property
prices, creating (6) hopes
for capital gains, prompting buyers to take on even more debt in the speculative hope that rising
asset prices will more than cover the added interest, which is
paid out of capital gains, not out of current income.
Rising
prices for assets seem to make most people better off, unless they are renters, or ethnic minorities, or immigrants, or come from large families and don't inherit a home of their own, or get sick and need to
pay for medical care, or get fired, or get their pension fund ripped off or otherwise fall outside what most people think of as the bell - shaped curve of good fortune.
If you only looked at the business developments, and
paid no regard
for the stock
price, you would be excited about the
assets that are contained under the GSK umbrella.
As a result, these sellers are often less concerned with the
price to be
paid for the
paid - in capital (i.e. discount to net
asset value).
It means that instead of spending income on buying goods and services in the «real» production - and - consumption economy, they are
paying the bill
for past
asset price inflation.
Zurich will
pay an expected
price of $ US409 million
for QBE's
assets in Argentina, Brazil, Colombia, Ecuador and Mexico, with QBE to make a pre-tax profit on the sale of around $ US100 million.
A futures contract is a contract between two people that involves buying or selling a specific
asset for a given
price today (called the strike
price), and
paying for it at a later date (called the delivery date).
Speculators regularly convince themselves that there is always a greater fool who will come along to
pay a higher
price for their
asset than they
paid.
«Our investors won't
pay a commercial
price,» says Geppert, apparently concerned about funding what they would consider an oversized profit
for Manchester, who
paid «above $ 110 million»
for the
assets now valued at roughly $ 130 - $ 140 million, when its related real estate
assets are included.
For every investable asset — publically traded or otherwise — the underlying value of the asset is the sum of the discounted future cash flows, and risk comes from paying too high a price for those cash flo
For every investable
asset — publically traded or otherwise — the underlying value of the
asset is the sum of the discounted future cash flows, and risk comes from
paying too high a
price for those cash flo
for those cash flows.
They emerged as the industry consolidators, using high levels of gearing to
pay mind boggling
prices for assets (in 2007, APN was the target of a bid by a private equity consortium that was blocked by a shareholder vote at $ 6.20 per share, a decision which cost them a lot.
For Munger, not considering the quality of the underlying business when buying an asset is far too limiting: «The investment game always involves considering both quality and price, and the trick is to get more quality than you pay for in pri
For Munger, not considering the quality of the underlying business when buying an
asset is far too limiting: «The investment game always involves considering both quality and
price, and the trick is to get more quality than you
pay for in pri
for in
price.
LEGAL BATTLES The holding company
for Washington Mutual finally had its reorganization plan approved in February 2012, following three years of legal battles about the low
price paid for its banking
assets.
Industry sources said Asahi had
paid too much
for assets, only to be squeezed by Woolworths and Coles, a
price war in bottled water with Coca - Cola Amatil and changing consumer consumption habits, including a shift away from sugary soft drinks and juice.
Treasury, which also owns Rosemount, Lindemans, Wynns and Wolf Blass, revealed earlier on Wednesday that the impairments comprised write downs of historical
prices paid for wine businesses before Treasury was de-merged from Foster's in 2011 plus a string of winery
assets and infrastructure at the lower -
priced commercial end of the market which have shrunk in value.
They have acquired an
asset in the region 0f 30 million (a
price they would refuse to
pay if he were on the transfer list)
for the sake of an individual who was no value to them in 3 months.
The La Liga champs know that United are desperate at the moment and will
pay a good fee
for Morata's services, which si why they are cashing in on their
priced asset as well.
By Paul Nicholson March 4 — The five - year long New York court case following the sale of Liverpool Football Club to Fenway Sports Group revealed this week former owner George Gillett Jr is still
paying # 125,000 a month in debt repayments
for a loan secured against the club, and that the new owners felt that due to the aging playing squad the # 295 million
price was in fact an overpayment
for the
asset.
Total return accounts
for two categories of return: income including interest
paid by fixed - income investments, distributions or dividends and capital appreciation, representing the change in the market
price of an
asset.
Fair market
price: The
price a willing buyer would
pay a willing seller
for an
asset, where both are acting rationally with full knowledge.
We were fortunate because we got into the real estate market when
prices were still low,
paying $ 120,000
for an
asset that has shot up in value.
At its recent share
price of $ 3.30, you're
paying very little
for Horizon's Arctic
assets.
Many firms adopt a value approach to investing in equities, which emphasizes
paying a good
price for a company's net
assets and earnings potential.
In essence, these firms sell at a
price that allows the investor to
pay nothing
for the fixed
assets (any buildings, machinery, land, etc.) and any goodwill items that appear on the balance sheet.
The greater fool theory supports the principle that there will always be a «greater fool» in the market who will be ready to
pay a higher
price based some «un-justified» valuation
for an already over-valued
asset.
This theory states that it is possible to make profits by purchasing
assets (which may be over-priced) and selling it to another person (a bigger or greater fool) who is willing to
pay even a higher
price for that
asset.
For example, a 50 - day moving average is equal to the average
price that all investors have
paid to obtain the
asset over the past 10 trading weeks (or two and a half months), making it a commonly used support level.
Asset - based - pricing is available for you to pay a periodic asset - based fee in lieu of paying commissions at the time of each transac
Asset - based -
pricing is available
for you to
pay a periodic
asset - based fee in lieu of paying commissions at the time of each transac
asset - based fee in lieu of
paying commissions at the time of each transaction.
He used to say that investors should seek protection in the form of margin of safety either through conservatively calculated intrinsic value (usually based on
asset value) over market
price or superior rate of sustainable earnings on
price paid for a business vs a passive rate of return on that money.
LBO participants
pay premium
prices, i.e., control premiums, which are then offset by the availability of attractive senior finance coupled with prospects
for asset redeployments plus constructive management changes.
They are willing to
pay remarkably higher
prices for risky
assets.
CRC's bankruptcy is not necessarily a problem
for an investor if the
assets are sufficient to
pay out the liabilities and leave some residual value in excess of the current stock
price.
I can't imagine
paying to buy mutual funds when there are so many free options out there,
for years I've used T Rowe
Price's
asset builder to invest small amounts
for no load.
If the
price of the underlying
asset goes to zero, the profit would be the strike
price less the premiums
paid for the options.
ASC 820 «Fair Value Measurements and Disclosures» defines fair value as the
price that would be received upon the sale of an
asset or
paid upon the transfer of a liability (i.e., the «exit
price») in an orderly transaction between market participants at the measurement date and establishes a hierarchy
for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.»
A painful lesson people have been forced to learn over & over throughout history — they inevitably end up
paying more & more
for their lunch (
price inflation), or else the lunch bill only finally comes due once markets (& the economy) collapse due to speculative excess (
asset inflation).
But if you don't have access to market expertise, spending a few hundred dollars
for an unbiased assessment of what your largest
asset is really worth just might be a small
price to
pay for some peace of mind.
Commodity forwards A «forward» is a contract agreed between two parties whereby one agrees to deliver a specific quantity of an
asset — say one ton of aluminium — on an agreed date and the other agrees to
pay a fixed
price for it on that date...
Investors must wait until the end of the day when the fund net
asset value (NAV) is announced before knowing what
price they
paid for new shares when buying that day and the
price they will receive
for shares they sold that day.
What you
paid for an
asset has no bearing on the future
price.
This would seem to somewhat explain mean reversion of stock
prices of low p / b value firms (once Mr. Market realizes he can
pay less
for income - generating
assets), but doesn't explain earnings growth.
A disregard
for price paid for value bought, whether it's a piece of a healthy 5 year earnings growth business, a piece of a business that is improving margins and dominating a market segment, or a piece of business that has huge a
asset base undervalued on it's balance sheet (but not undervalued with respect to the
price paid!)