Return on equity

What do they do with your money? What is your return on equity? Have you ever wondered how well your money is really managed by the companies you hand it over to? After all, the media is full of stories about CEO compensation reaching new heights, buyouts of non-profitable holdings, million-dollar birthday parties and other horror stories. Return on equity (ROE) is used to measure how much profit a company can generate from the money invested by shareholders. Think of it this way; if your teenager asked to borrow $1,000 to start a small side business, chances are you would comply. When they came back to ask for $10,000, you would examine how well they performed with the first $1,000 before making the next loan. It’s so logical that you might wonder why more people don’t use this handy little measure before pouring huge sums into a money pit masquerading as a business. Join the ranks of those in the know. ROE is easy to calculate and provides valuable insight into how the company operates. Think twice before investing in a company with a negative ROE. Instead, seek out self-sustaining companies with a healthy ROE that indicates the willingness and ability to use invested dollars for future growth rather than operating costs. A good ROE is 15% or better, so keep your eyes and ears open for the opportunity.

About the Vikingen

With Vikingen’s signals, you have a good chance of finding the winners and selling in time. There are many securities. With Vikingen’s autopilots or tables, you can sort out the most interesting ETFs, stocks, options, warrants, funds, and so on. Vikingen is one of Sweden’s oldest equity research programs.

Click here to see what Vikingen offers: Detailed comparison – Stock market program for those who want to get even richer (vikingen.se)