Sentences with phrase «returns to investors when»

There is also ample evidence that it's far harder to produce meaningful returns to investors when managing a giant fund.

Not exact matches

Firstly, because it means higher interest rates — so when companies try to borrow money, that money will become more expensive and as a result they will have less room to give returns to investors.

Freed from the demands of public market investors who tend to focus on short - term returns, some companies may find renewed life that harks back to when they were small and privately held, business experts say.

In the coming year, investors will return to basics when they value your company, and they will want to see evidence of growth in profits and revenue, Nordlicht says.

He cited areas, such fixed income and cash, as sectors that could burn investors with poor returns in the coming months, when compared to stocks.

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.

Investors are starting to use the dreaded «M» word when it comes to Apple — maturity — and are considering it a «value» stock, or one that can be counted on for good, solid returns, but not one that will deliver growth.

«When you look at our track record of what we've done over the last several years, you've seen that effectively we were returning to our investors essentially about 100 percent of our free cash flow.

Overnight — well, four full days later — those investors enjoyed a 100 % return on their investments when Facebook acquired Instagram for $ 1 billion, drawing comparisons to Google's $ 1.65 billion purchase of YouTube in 2006.

Grier says many investors in today's sluggish economy are now looking beyond percentages when it comes to return on investment.

Investors should also take note that poor years — those in the bottom quartile of returns — tended to be worse when starting valuations were more elevated over the long - term average.

When a business has a clearly - defined end plan, investors can gauge how quickly they'll be able to earn a return on that money.

«The real risk equation for the investor becomes time: When are we going to see a return?»

To offset the significant risk they face when funding unproven startups, investors often start with a simplistic expectation that they should have the potential to see a return on their investment equal to 10 times what they put uTo offset the significant risk they face when funding unproven startups, investors often start with a simplistic expectation that they should have the potential to see a return on their investment equal to 10 times what they put uto see a return on their investment equal to 10 times what they put uto 10 times what they put up.

He had only just learned something was awry when, as an investor in three of Concrete's buildings, he had received proxy forms asking him to sign over his stakes to a company called Strategic Group in return for unsecured debentures, a kind of IOU not backed by real collateral, promising to pay him 6 % a year.

Sometimes a startup is well funded but just can't seem to see a path of success like it thought and returns its money to investors, sometimes the market changes or the industry changes and now what was a «big» idea is only a feature but something need and so is true for the opposite when what was once a feature in time becomes a company.

It's going to take longer than that with equity crowdfunding simply because of the due diligence and information sharing that needs to occur when investors are buying a piece of a company and hoping to someday see a financial return.

The one element binding this diverse group of investors together is that they receive some type of equity or stock vehicle when they put money into a growth company; each group then has its own set of goals in regard to how much of an investment return its members hope to earn on that stock and how quickly they hope to earn it (usually when they cash out during an initial public offering or in a merger or acquisition deal).

When it comes to financial terms, plan to be held to the same rigorous standards that any private - equity investor would hold you to: a clear investor exit strategy (probably within three to five years) and projected annual returns of 20 % to 30 %.

Three of our 2016 picks returned better than 40 %, and two of those three reaped most of their gains over spans of just a few weeks — Virgin America, when it announced that it was negotiating with a buyer and then closed a deal; and Wynn Resorts, after a better - than - expected earnings report lured investors back to the stock.

When building a portfolio, retail investors typically seek to generate the highest possible return at a certain desired risk level.

As a result, it is now clear that the U.S. is in the latter stages of the multi-year credit cycle, a period when rising corporate leverage negatively affects returns to corporate debt as investors demand higher risk premiums to compensate for the greater volatility created by increased leverage.

«When commodities are this cheap relative to stocks, the returns accruing to commodity investors have been spectacular,» the firm continues:

The result in the early 1980s when debt - leveraged buyouts really gained momentum was that financial investors were able to obtain twice as high a return (at a 50 % corporate income tax rate) by debt financing as they could get by equity financing.

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It's particularly dangerous because it causes investors to buy after periods of strong performance (when valuations are high and expected returns low) and sell after periods of poor performance (when valuations are low and expected returns high).

Hedge funds designed to protect against falling and volatile markets have made a strong pitch to investors: Trust us with your money, and we'll make lots of it for you when years of relatively smooth, positive stock returns inevitably end.

«When you're creating a plan for that mix of stocks and bonds, for the newer investor, it's really powerful to see the relationship between adding more stocks — which adds to your return in the long term, but also adds to the risk — and the likelihood that you're going to see many more ups and many more downs,» says Francis.

According to one study I read from research giant Morningstar, during a period when the stock market returned 9 % compounded annually, the average stock investor earned only 3 %.

Even when investors stick to stock, bond, and mutual fund ownership, their rejection of simple investing basics such as low turnover results in pathetic returns on their money.

While there is no such thing as «the right amount» when it comes to cash or any other asset class, investors need to consider both their return objectives and risk tolerance when making allocation decisions that are right for them.

When his Securities Exchange Company paid early investors the high returns he had described, they spread the word to others.

When I said that the cult of equity was dying, what I meant was that those investors and those liabilities structures such as pension funds and insurance companies that have depended on a 6.5 % constant real return from stocks such as we've have had over the past century are bound to be disappointed.

It's instructive to note, for investors who follow script and rush into short duration exposures when central bankers are removing accommodation, that the short index generated a flat return for the year.

Conventional wisdom says that those investors should return to bonds when interest rates go up.

In the last several years, many TICs have done poorly because sponsors» paid high fees when acquiring the property, used investors own principal to pay returns, overpaid for the property, or overleveraged property.

Relative to the overall return of the S&P 500 over the same time it fared a little better as the S&P had a -.7 % return, however when you look at buy and hold investors they fared better at a return of 1.2 %.

Based on this formula, stocks that return a value of 20 to 30 are very explosive and are usually best for swing trading, especially when they are liquid (easily tradeable for individual and professional investors alike).

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.

While investors should never seek median returns in any asset class, the hard truth is that the pooled, net returns for the entire venture asset class have outperformed when compared to other investment opportunities.

Companies like to use EPS as a performance metric because it is the primary focus of financial analysts when assessing the value of a stock and of investors when evaluating their return on investment.

Conversely, when the inclinations of investors shift from risk - aversion to speculation in an undervalued market, extraordinary returns can unfold over a very short period of time.

When building portfolios, most investors tend to focus on the appeal of return over risk.

You need to have developed a sound financial plan that demonstrates how your business will make money and some reasonable scenarios about when your investors will receive a cash return on their investment.

Another factor also comes into play when real estate investors seek to maximize their returns.

Even VC's think this way, which is why Fred Wilson when describing his decision to syndicate a portion of his invesment in GeoCities to another investor says, «I learned that good partners are worth every penny of returns you give up to get them.»

Yields can be measured in a number of ways, including coupon yield, or the stated interest rate of the bond, and yield to maturity, which is the total rate of return when an investor holds the bond to maturity.

«FINRA is issuing this Alert to warn investors to be cautious when considering the purchase of shares of companies that tout the potential of high returns associated with cryptocurrency - related activities without the business fundamentals and transparent financial reporting to back up such claims.»

It has been easy for stock investors to love bonds as they have generated handsome returns while providing protection when the stock market falls.

Many investors neglect «alternative» assets when investing by age but the group can be a great boost to return and some investments may even help lower your risk.