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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Return on investment (ROI) is a way to measure an investment's performance. It also can be used to compare different investments.
There are a few things to remember before investing in stocks:
Active investing strategies means picking your own stocks and building and managing a portfolio. It's hard and few people do it well.
Passive investing strategies mean investing in an index. When indexing, most people like to invest the same dollar amount ...
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