How do you dress Index by a wide margin – Private Businesses

Sometimes things are a little too good to be true. Many research companies may at times of risk aversion its share uppvärderad as if everything would go along way. NeuroVive was the week yet another example of how difficult it is to evaluate research on the stock exchange. Its shares are down 48 percent in a week after the negative study results. Obviously everything was not as good as it looked.

I have off-exchange come across an offer that involves inserting SEK 50 000 or more on an account. Then you should get 25 percent annual tax return and low risk. Apparently it should be via a software linked to gaming and gambling.

When something is too good to be true, it is often not true. The Swedish branch of the Foundation in the Seychelles will not answer anything specific to my question about how or how much they earn. Then it is easy to be suspicious.

What is the total return they get? How much do they share? How generated profits and how sustainable is the business model? Which people are behind the foundation of the Seychelles? How can the gains be guaranteed? And so on.

It is much easier to get answers to such questions from listed companies. They have quarterly reports, and descriptions of operations, market value, earnings history and a future, you can assess the risk.

Many listed companies also generate a return on equity above 20 percent. As long as companies’ annual profits amounting to 20 percent of the equity shares should theoretically and in many years is also able to yield about the same.

Exactly how close to the stock returns in the long term, the return on equity will depend on the valuation buying shares and how long you own the stock. Choosing the right company with reasonably good timing can in any case receive more than the average 10 percent as the stock market usually give a year.

The company hexpol , Cellavision , Net Entertainment , Atlas Copco and Betsson hit the market index both one and three years is no coincidence. They all have a return on equity exceeding 20 percent and has remained relatively good prospects.

The shares will not beat the market index every year, but in a time horizon of five to ten years, chances are good that companies continue delivering. Although it may not be best köplägena now after the recent upturns should share sooner or later to keep up with the companies’ performance upwards.

Too good to be true? No, it’s a reasonable assessment.