Return on equity went from 10 % to 50 %, aided by the booming stock market of the»90s, but that was only a help.
Not exact matches
On Friday, Bank of America said return on equity is forecast to go up by 11 percent in 201
On Friday, Bank of America said
return on equity is forecast to go up by 11 percent in 201
on equity is forecast to
go up by 11 percent in 2017.
Some of the effects were measurable — boards with more women are linked to a 53 % higher
return on equity, according to one study, and their companies
go bankrupt less frequently.
Investment giant Vanguard Group
goes even heavier
on equities than Schwab does, to power decades of retirement
returns.
And if you can buy some business that earns high
returns on equity and has even got mild growth prospects, you know, at much lower multiple earnings, you are
going to do better than buying ten - year bonds at 2.30 or 30 - year bonds at three, or something of the sort.»
When you sell a well - branded, low - cost product in 207 countries that earns 30 %
returns on equity, you're
going to be around for a long time.
Going forward, as Japanese companies raise their notoriously low
return on equity, Japanese stocks should be supported by relatively cheap valuations and rising dividends.
Actually, as long as a company with a 5 %
return on equity isn't
going to plow any of its cash flow back into the business - it could be a good investment at the right price.
We're
going to let you in
on a little secret: Investors focused
on economic growth are wasting their time... If anything, the evidence suggests a negative correlation between
equity returns and GDP growth... It may be that the best prices can be had in times of low economic growth, whereas we tend to overpay in a growing economy.
The high capital levels provide a buffer for the relatively low level of profitability, but
going forward management must take more steps to drive
return on equity and
return on assets to more acceptable levels.
These valuations might be reasonable
on the assumption that short - term interest rates will be kept at zero for more than 30 years, but our impression is that what's actually
going on is that investors feel they have «nowhere else to
go» and — as in 2000 and 2007 — are speculating without a clear recognition of the dismal long - term
returns that are now priced into
equities.
If you happen to not need that income, then you're probably
going to lose out
on some overall
returns that you could have made in
equities.
However that's still higher than my
returns on anything other than
equities at the moment so I might
go ahead and pay it off.
Many believe this dynamic can
go on, since rates are probably
going to remain low, creating a still high «
equity risk premium» — the likely
return from stocks over bonds.
Until the developed stock markets retreat from record levels of valuation, we expect to have less portfolio exposure to
equities going forward and more exposure to event driven situations such as liquidations and reorganizations that are not so dependent
on the vicissitudes of the stock market for their investment
return.
Are moves like this more selling driven (i.e. time to lighten up
on equity, or this stock has
gone up to a level of very low future
returns)?
Gone are the days of extreme
returns on equity, but double - digit
returns on equity should be here to stay.
# 53 Shawn
on 02.17.18 at 5:46 pm The persistent media narrative over the past several years has been lower
equity returns going forward.
With an expected annualized
return on equity of 6 % a discount of 50 % seems suitable, because basically just half of the value generated by the business
goes towards shareholders and with an expected annualized
return on equity of 9 % a discount of 33 % is warranted.
The impact of low risk appetite of parents
on children will that they will avoid investing in
equity, which in turn is
going to prevent them from getting increased
returns and thus make it hard for them to reach their goals.
The year - to - date high of 9.86 % reached
on May 19th has shrunk to 9.68 % while strength in the
equity markets may have seen investor reallocating funds as the year - to - date
return of the S&P 500 has
gone from 2.8 % to 6.43 % over the same time frame.
Investors who were traumatized by what happened in 2008 were willing to accept virtually zero
returns instead because they were afraid, at precisely the time when US
equities had
gone on sale.
If you are getting $ 3000 / mo income, some of which
goes to principal in that mortgage payment, even the $ 1300 / mo left is a great
return on your
equity.
Before I
go on, I need to explain that what I will use to give a rough analysis of value is a Price - to - Book vs
Return on Equity analysis [PB - ROE].
On the question of rates of return, I have a forecast of 10 % nominal return on an all equity portfolio going out 10 years from current level
On the question of rates of
return, I have a forecast of 10 % nominal
return on an all equity portfolio going out 10 years from current level
on an all
equity portfolio
going out 10 years from current levels.
I think the mental model of paying 70 cents for a business makes great sense; if the normal
equity is priced for 7 %
returns, and you're
going for 70 cents
on the dollar, you're starting with a 10 % ROI.
We think that the view that broad
equity returns are limited to around 3 %
going forward based
on an expected low GDP growth plus dividend yield misses the importance of retained earnings and its significant capital compounding benefit.
Edelman didn't
go where most advisers
go by either improperly comparing a mortgage to an
equity return, or quoting the after - tax mortgage rate of 3.5 percent without considering the taxes
on the bonds.
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