Allow me to cut through the foreplay and get straight to the point. What we are discussing today is something very crucial to all investors. The topic today is about Investor Returns.
Now we all know what returns are. It is an indication of how hard our money is working, of how many percent we have eked out from the markets. It could the interest from fixed deposit accounts, the coupon payments from bond subscriptions, dividends from REITS, capital gains from stocks or even the difference in price between what we paid for and what we sold our gold hoard for.
Positive returns makes us happy, negative returns makes us want to do this.
In the simplest form, investment returns is net profits divided by total assets. For simplicity sake, let us take the example of Apple Inc (AAPL).
Assuming you have purchased one share of AAPL on 31st May 2011 (first day on the chart) for $49. And you have decided to sell it last Friday for $100. Your returns on that investment would have been 105%. Awesome returns on first glance.
To find out your yearly returns over the previous five years, …read more