It’s the single most important metric people look for and demand, yet often subconsciously overlooked. We oftentimes make decisions not caring about what our potential return might be – we carelessly take what we see at face value and invest our money in it. Worse, we might not even try to calculate our potential return before deciding to invest.
“Oh look! SPH has dropped to multi-year lows similar to that of the financial crisis, I’m jumping in!”
While this decision may (or may not) yield good return, at the point in time when we haphazardly decide to invest, why weren’t we thinking more on the lines of: “What are the potential returns I can earn from this risky investment into SPH at today’s price?”
Understandably, it is incredibly tough and it takes arduous work to calculate an actual number out, for returns are essentially an estimation. We …