In my latest book, The Power of Passive Investing, I summarized several timing studies and conclude that these strategies have reduced investor return by about 1.5 percent annually since 2001.
If an investor's realized return from an investment, net the fees, exceeds what they could get elsewhere, despite having to pay what seems like a higher fee, the investor is happy with his investment and its return.
For more than a century stocks have given the patient investor a higher return than bonds.
Plus there are times when the prices of ETFs veer away from the value of the underlying holdings, which can eat into or add to an investor's return.
Somebody at the brokerage or bank guesses what the annual return will be, and the investor must pay taxes on this theoretical return each year even though he has no cash in his hand.
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In addition to the financial analysis we just went through, the strategy looks at the rate of return an investor can expect.
Many sin stocks also pay high dividends, increasing an investor's overall return.
Also ask how the distribution is being funded and whether a portion of that distribution is comprised of a return of investor capital.
This means a student gets the money for college from an investor, who in return gets a percentage stake in future earnings for some period of time.
Adding up the earnings from the past four quarters and dividing them by the share price gives an indication of how much return an investor is getting for his money.
And while getting her shareholders to agree with her may be another matter, it's worth noting here that nothing quite satisfies an investor like a sparkling return on his investment.
Investor Relations will not return calls these days.
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In some cases, the transmission operator is not the same entity that builds or maintains the infrastructure, so investing in transmission was a murky proposition because it was unclear how an investor might earn a return on investment.
Because stock ownership, even by large institutional investors, is so widely dispersed, the potential return an investor can get by being an activist shareholder is too low to justify spending his or her time and money on efforts to hold down unnecessary pay and spending.
These would include: an investor cannot pick the return but can only choose the level of risk, One cannot accurately predict the market, Diversification lowers risk, Invest to be on the Efficient Frontier and low cost investments can improve performance vs. high costs.
If an investor is generating a 3% return in their money market account, but inflation is humming along at 4%, the investor is essentially losing purchasing power each year.
At these levels, it gets tough for an investor to make a good return.
For example, a conservative investor should have fairly low return expectations given the defensive asset allocation that an advisor would recommend.
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This is because the cost of borrowing to the tax-payer is just another way of saying the expected return to the investor.
Over the next several months, Elia paid out partial redemptions to the investor, and did not return numerous emails and phone calls.
The actual return to the investor may be more or less than the performance of the underlying portfolio, especially in the short term.
Should the covered call contract expire worthless, the premium would represent a 3.80% boost of extra return to the investor, or 22.75% annualized, which we refer to as the YieldBoost.
Should the covered call contract expire worthless, the premium would represent a 8.85% boost of extra return to the investor, or 52.95% annualized, which we refer to as the YieldBoost.
Should the covered call contract expire worthless, the premium would represent a 3.73% boost of extra return to the investor, or 22.32% annualized, which we refer to as the YieldBoost.
In plain English, this means that the return to the investor must be considerably less than the insurance company earns on the bonds, which in turn is usually less than the market rate.
Common investing wisdom is that the lower the fees, the better return for the investor, especially if the products are identical, which is pretty much the case for the physically backed gold ETFs, said Michael Johnston, director of ETF Database.
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In the case of an investor going long the total return of the NCREIF index, he or she would accept the total return on the NPI (paid quarterly) on a predetermined notional amount and agree to pay the LIBOR rate, plus a spread on the same notional amount.
He says the investor (who didn't return phone calls from forbes) was enthusiastic about Lucanix from the get-go.
The quick return of extremely bullish investor sentiment after only a two-week bounce-back rally is not reassuring either.
Will the end of summer herald the return of the retail investor?
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