Return on Investment
This is one of the most important concepts in investing. It measures how much money you make or lose from an investment relative to how much money you invest. It is usually expressed as a percentage or ratio.
Buying stocks is an example of it. To make most profit, we need to know how to calculate the return on investment (ROI) from buying stocks at different prices and selling them at different prices.
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In this video, William Ackman, a billionaire investor and founder of Pershing Square Capital Management, explains the basics of finance and investing.
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