The most highly profitable investments with examples and profitability. Highest Return Investments with Examples and Returns The stock market is a game where people lose money

Today we will introduce you to the investment idea for 2016 from the famous trader Ramil Ibragimov. Investors who followed his direct instructions have already earned from the beginning of the year, and I note WITHOUT SHOULDERS, which reduces the risk of capital loss to nothing. Estimated profitability of investment ideas for 2016 -100% per annum, and if you look beyond the horizon in a 5 year period - up to 1000% ibragimov.whotrades.com/blog/43320931579 Trading is carried out through the brokerage company Zerich
And now we read very carefully, all the ideas are described in the article. There will be no archive, because there is no point in duplicating the text part, all valuable information is presented in the text and in the screenshots . So let's get started. Throughout the entire period of crisis phenomena in the economy, poor people constantly lost their financial stability, and those who owned financial resources and information increased their capital. Unlike other countries, in Russia, the margin of return is much higher with almost zero risks with the right deliberate approach to investing funds. I highlight the basic principle of investing in the absence of a crisis. This is investing in growing companies and in securities called divitickers. They form a constant inflow of funds in the form of dividends, which can be reinvested already at the price of securities that have declined since the dividend cutoff date. However, during a crisis, the yield of such securities, even 20-30% per annum, is not of interest. The minimum income upon exit should be at least + 1000% for a period of 3-4 years, which overtakes all possible trading strategies on the exchange. Principles of investment ideas 2016 in a crisis: 1. Shoulderless. By trading on your shoulders, you create the risk of losing capital. Gambling leads to loss of money. In addition, leverage constantly reduces the amount of investment in the form of commissions for their use, which is especially unpleasant at the start of investments, when every percentage is important. 2. Lack of trade . Out of 100% of traders who trade, 95% lose money. In addition, there is not a single speculator trader on the Forbes list. You invest in basic purchases and then you can buy additional selected securities once a month (not more often). 3. Positions are not closed in any scenario . This method is taken from the rules of credit institutions that never work at a loss. Even if oil reaches $14 in 2016 (the calculation is made taking into account inflation from 1998), stock positions are not closed. 4. At the same time, there is a main difference - security choice, momentum choice, and industry choice. Of course, at the peak of the crisis, you should not buy strong papers. Everything is invested in the seemingly most affected sectors. Those papers that fell in 2007-2008 from 5 to 10 times and then recovered in 2 years. Experienced traders have earned 1000% on them. That is, every 5 million turned into 50 million rubles . So now - they again fell from 5 to 10 times. These are: metallurgy, banking sector and energy. But at the same time, one must take into account an important concept, such as diversification. Financial advisers often recommend diversifying your portfolio. That is, buying shares of different sectors. Thus, protecting investors from their own stupidity (not the ability to make the right choice). But… the point is that not only is the market cyclical, but the sectors themselves are deeply cyclical. This means if you have 5 sectors, 2 of them are growing, 2 are falling, 1 is standing still, then the result of diversification is zero. If the market falls, then all sectors fall, and as a result ... diversification will not protect you from the crisis at all. The idea of ​​a cyclical economy I managed to put it into practice during the crisis of 2007-2008 on the shares of metallurgy, coking coal producers, banks and energy. And increase its efficiency through calculations cyclicality of industries . In the coming years, a good income for me first brought the metallurgical sector (shares of Severstal, MMK and NLMK), then 100% was earned on the shares of Sberbank. The only acceptable sector right now is ENERGY and includes the highest possible margin of return.
Points 4,5,6 on the MICEX POWER index show recommendations of experts to sell energy shares in 2009 and fix profits. At the same time, there were no buy recommendations, so the question arises - what profit to fix. The recommendations themselves also turned out to be a failure - the shares recovered completely on +1000% on a number of quality papers. Points 1,2,3 indicate the moments of the recommendation of expert analysts to buy depreciating shares. In the middle of the fall, such recommendations ceased. But the question arises - can we buy any stocks from the energy sector? Of course no. Many of them received a severe blow, and some were not worth the money they were sold on the market before. That is, the graphs were far from reality, and even now they do not correspond to reality in the sector. Therefore, not only technical, but also a complete fundamental analysis of companies is important here. An important principle is the income generated by companies in the absence of a crisis. That is, typical P / E on and EV / EBITDA will not help in the calculations. Some of them are worth 1 year's profit or even less at current prices. The analysis should be for long periods in the past - pre-crisis indicators, comparing them with the current capitalization of the company. This is the basis of the main investment idea for 2016.

ADDITION. METHODS

Well, for example, we take and enter into GOOGLE: RBC SHARES TGK-1. It gives a page like this In the Competitors section, we see that P/E=3.78. That is, the company pays off in 3.78 years. As well as EV/EBITDA=4.63 years. Here is the second indicator, taking into account the debt, if you recoup the company and pay the debts. EV/EBITDA is greater than P/E, which means the company has about 0.85 years of debt. Can be paid in less than a year. This is a fairly small debt load. Further, Buffett, for example, believes that if a company pays off in 4-5 years, then it is a great company. It means that everything is in order with TGC-1. But these indicators are not key for me, for example, the company will receive a loss at the end of the year. And the P/E will be in a terrible state and everyone will scream that the company is the worst of all. Since all over the world everyone evaluates multipliers only for the current year. And they use comparative fundamental analysis by sector. At the same time, multipliers are not fixed indicators, but changing over time. But she had a loss, say, only 1 year or 2 years. Therefore, you need to look at P / E and EV / EBITDA for the past years. Assess growth over the past 10-20 years, growth rate, comparable growth. To do this, we click on net profit in millions of dollars and we see that in other years the profit was even much higher. That is, before the crisis. And the P/E was even 1.5! annual profits. For example, in 2012-2013, the company earned $192 and $193 million each, and now it is worth $314.5 million. Accordingly, when we get out of the crisis, and any crisis is cyclical, there will be a return of average indicators, which was the case in 2008-2009. And accordingly, the return of quotes. In the course of such a comprehensive calculation, I selected the following issuers with the maximum positive expected profit and the minimum expected loss for purchase in 2016: These are 2 companies of Gazpromenergoholding. one. TGC-1. 2. Mosenergo The following are the highest quality subsidiaries and affiliates of Rosseti: 3. IDGC of Center 4. IDGC of Center and Volga Region 5. IDGC of Volga In addition, these companies may participate in the upcoming privatization, which will dramatically increase their value. Although, ideally, it would be better to do without privatization and sudden jumps. Two of these SDCs also pay good dividends. 6. FGC UES There are 3 more companies to buy in the summer of 2016. The final portfolio should consist of 9 securities. Here is a portfolio with a horizon for long-term investment should be collected and increased in the current situation. Yes, prices may be lower, but it is important for us that the current yield is already acceptable. That the current yield to the period suits us. And the risk expectation is also at low levels. The calculation of average OIL prices gives the following changes in the coming years : 2016 - $50 2017 - $70 2018 - $90-100 2019 - $140 2020 - 180 US dollars. According to my calculations, the recovery of the oil market will begin in April 2016. Such a conjuncture will completely restore the economy and, moreover, will make it stronger. This will be especially reflected in the energy sector, the development of which the state has invested huge funds. In addition, overestimated concerns about the growth of the Chinese economy. It is not the growth of its economy that is slowing down, but the growth rate. That is, no one takes into account comparable growth . And ordinary investors do not take into account in their calculations the effect of the decline in oil production in the world due to the bankruptcies of shale companies and the economies of the raw material third world. Not taken into account by the rank and file, but taken into account by the big players, in whose interests there are opportunities to acquire large positions on the stock exchange. The main positions though: should be related to the discipline of investing, a cold pragmatic look. The implementation of this investment idea is possible only in a crisis, so such a chance is given, perhaps, only 2-3 times in a person's life. And it cannot be missed.

Now 3 additional investment ideas 2016.

7. Rosseti(ordinary shares). This year, Rosseti refused to pay dividends. The reason is that there is no profit under RAS. And dividends according to IFRS cannot be higher than 100% of profit according to RAS. What does this mean. Many energy stocks have even shown 100% gains since January of this year, when the first file of my consultation appeared. But Rosseti did not participate in this growth. Because Rosseti does not have its own profit, unlike FGC, the company "lives" at the expense of dividends of subsidiaries. Daughters received losses or low profits in 2014, and what comes in 2015 will be reflected only for this year. Therefore, here, as in LSR, it is necessary to take into account the formed "voids" and add a year to the indicators of subsidiaries. This is great, as it gives you time to make informed decisions. eight. Raspadskaya. China is phasing out steel and coal production. This is beneficial for the demand of metallurgists. And it is beneficial for coal miners, since our metallurgists use coking coal for steel smelting. This means that Raspadskaya will finally start making good profits. + Good owner of EVRAZ Group. Excellent investment! nine. Uralkali. The effect will not start immediately. Now Uralkali has announced the buyback of shares from the stock exchange. Will redeem the Renaissance. This will lead to a slow rise in stocks until September. Investors are still in fear that the free float will decrease below 5% and then there will be a forced buyback and delisting from the exchange. This does not take into account the fact that there will be a redemption of treasury shares and free float can reach even 10%. Many well remember the story of the Polyus Gold, where there was the same picture and the punching of papers, and then a sharp increase. Acceleration in Uralkali is likely to happen after all buyouts around December 2016-February 2017. Unlike other securities, positions in Uralkali should be closed on temporary targets - February-March 2017, after which positions in Rosseti should be strengthened. Shares in Rosseti should be increased to 25% of the portfolio, Uralkali 20% and 15% in Raspadskaya. In total, three new ideas can make up 60% of the portfolio. Now I have calculations for investments both in 2 years and in 10 years. But I think that everything should be on the shelves and relevant ideas should be placed with a horizon of half a year - a year.

Index funds allow you to receive income from investments in the stock market absolutely passively. For example, if you invest in a fund based on the S&P 500 index, your funds will be invested in the general market, and you will not have to think about how to manage your money and whether to sell or buy shares of certain companies. All these moments will be managed by the fund, which forms its investment portfolio depending on the state of a particular index.

You can also choose a fund that works with any index. There are funds involved in various business sectors - energy, precious metals, banking, emerging markets and others. You only need to decide for yourself that you want to do it, then invest and relax. From now on, your stock portfolio will run on autopilot.

1. Make videos for YouTube

This area is developing very quickly. You can make videos of absolutely any category - music, educational, comedy, movie reviews - anything ... and then put it on YouTube. You can then connect Google AdSense to these videos and they will show automatic ads. When viewers click on this ad, you will earn money from Google AdSense.

Your main task is to create decent videos, promote them on social networks and maintain enough of them to earn income from a few clips. Shooting and editing a video is not so easy, but after that you will receive a source of completely passive income that can last for a very long time.

Not sure if you can do it on YouTube? Michelle Phan has combined her love for makeup and art with making videos, has amassed over 8 million followers, and now has her own $800 million company.

1. Try affiliate marketing and start selling

This is a passive income technique more suitable for owners of blogs and active Internet sites. You can start promoting any products on your site and receive a fixed fee or a percentage of sales.

Making money this way is not as difficult as you might think, because many companies are interested in selling their products in as many places as possible.

You can find partnership offers either by contacting manufacturers directly or on specialized sites. It is best if the advertised product or service is of interest to you or corresponds to the theme of the site.

1. Make your photos profitable on the web

Do you love taking pictures? If so, you might be able to turn it into a source of passive income. Photobanks, such as and, can provide you with a platform for selling pictures. You will receive a percentage or a flat rate for each photo sold to a website client.

In this case, each photo represents a separate source of income that can work again and again. All you have to do is create a portfolio, upload it to one or more platforms, and that's where your action will end. All technical issues of photo sales are handled through the web platform.

1. Buy high yield stocks

By creating a portfolio of high yield stocks, you will receive a source of regular passive income with an annual interest rate that is much higher than the interest of bank deposits.

Do not forget that high-yielding stocks are still stocks, so there is always the possibility of capital revaluation. In this case, you will receive profit from two sources - from dividends and return on invested capital. To purchase such shares and fill out the relevant forms, you will need to create a brokerage account.

1. Write an ebook

Of course, this can be quite a laborious process, but when you write a book and place it on marketplaces, it can provide you with income for years. You can sell the book on your own site or enter into a partnership agreement with other sites that are relevant to the subject of the book.

1. Write a real book and get royalties

As with writing an e-book, this is where you have to work hard first. But when the work is finished and the book goes on sale, it will become a completely passive source of income.

This is especially true if you manage to sell the book to a publisher who will pay you royalties on sales. For each copy sold, you will receive a percentage, and if the book is popular, these percentages can result in substantial amounts. In addition, these payments can last for years.

Mike Piper of ObviousInvestor.com recently did this. He wrote the book Investment in Plain Language, which was only sold on Amazon. The first book became so profitable that he created an entire series. These books are in total.

1. Get cashback from credit card transactions

Many credit cards provide cashback ranging from 1% to 5% of the purchase amount. You still go shopping and spend money, right?

Such bonuses allow you to provide yourself with a kind of passive “income” (in the form of reduced spending) from actions that you still perform.

1. Sell ​​your own products online

In this area, the possibilities are endless: you can sell almost any product or service. It can be something you created and made by yourself, or it can be a digital product (software, DVDs or instructional videos)

For trading, you can use a specialized resource, if suddenly you do not have your own website or blog. In addition, you can enter into a partnership agreement by offering goods to sites of relevant subjects or using platforms like (American marketplace for the sale of digital information products - ed.).

You can learn how to sell goods on the Internet and earn quite a lot from it. It may not be completely passive income, but it is certainly more passive than a regular job that you have to go to every morning.

1. Invest in real estate

This method falls rather into the category of semi-passive income, since investing in real estate implies at least a small level of activity. However, if you have a property that you are already renting out, the only thing left to do is to maintain its condition.

In addition, there are professional property managers who can manage your property for a fee of approximately 10% of the rent. Such professional managers help to make the process of profiting from such investments more passive, but they will take away part of it.

Another way to invest in real estate is to pay off a loan. If you take out a loan to buy a property that you will rent out, your tenants will pay off this debt a little each month. When the full amount is paid, your profits will increase dramatically, and your relatively small investment will turn into a full-fledged exit program from your main job.

1. Buy a blog

Thousands of blogs are created every year, and many of them are abandoned after a while. If you can acquire a blog with enough visitors - and therefore enough cash flow - it can be a great source of passive income.

Most blogs use Google AdSense, which pays once a month for ads placed on the site. You can also enter into partnership agreements to provide additional income. Both of these streams of profit will be yours if you own a blog.

From a financial standpoint, blogs typically sell for 24 times the monthly income the blog can generate. So if a site can make $250 a month, chances are you can buy it for $3,000. This means that by investing $3,000, you can receive $1,500 annually.

You may be able to buy the site for less money if the owner really wants to get rid of this asset. Some sites host "eternal" materials that will not lose their relevance and will generate income years after publication.

Bonus Tip: If you buy such a site and then fill it with fresh content, you will be able to increase your monthly income, and you will be able to sell the site again after some time for a significantly higher price than you gave away when you bought it.

Finally, instead of buying a blog, you can create your own. This is also a good way to earn money.

1. Create a selling website

If there is a product that you know a lot about, you can start selling it on the profile site. The methodology is the same as when selling a product of your own manufacture, except that you do not have to deal with the production itself.

After a while, you may find that you can add similar products. If this happens, the site will begin to generate significant profits.

If you can find a way to deliver goods directly from the manufacturer to the customer, you won't even have to get your hands dirty. It may not be 100% passive income, but it is very close to it.

1. Invest in Real Estate Investment Trusts (REITs)

Let's say you decide to invest in real estate, but don't want to pay attention and time to it at all. Investment trusts can help you with this. They are something like a fund that owns various real estate projects. The funds are managed by professionals, so you don't have to interfere with them at all.

One of the main advantages of investing in REIT trusts is that they usually bring higher dividends than stocks, bonds and bank deposits. You can also sell your interest in the trust at any time, making such assets more liquid than owning real estate on your own.

1. Become a passive business partner

Do you know a successful company that needs capital to expand its business? If so, you can become something of a short-term angel and provide that capital. But instead of giving credit to the owner of the company, ask for a share of the shares. In this case, the owner of the company will manage the work of the company, while you will be a passive partner, also taking part in the business.

Every small business needs a referral source to support sales. Make a list of entrepreneurs whose services you use regularly and whom you can recommend for cooperation. Contact them and find out if they have a payment system for referrals.

You can add accountants you know, landscape designers, electricians, plumbers, carpet cleaners, you name it. Be prepared to recommend these people to your friends, family, and colleagues. You can earn commission on every referral just by talking to people.

Do not underestimate referral programs in the professional field. If the company you work for has bonuses for recommending new employees or new clients, take advantage of it. This is very easy money.

1. Rent out unused accommodations on Airbnb

The concept appeared only a few years ago, but very quickly spread around the world. Airbnb allows people to travel the world and pay far less than regular hotels. As an Airbnb member, you can use your home to host guests and earn extra money through rent alone.

The amount of income will depend on the size and condition of your home and its location. Naturally, if your house is located in an expensive city or near a popular resort, the income will be much higher. This is a way to make money from free spaces in your home that would be empty anyway.

1. Write an application

Apps can be an incredibly lucrative source of income. Think about how many people have smartphones today. Yes, almost everything! People are downloading apps like crazy – and for good reason.

Apps make people's lives easier. Whether it helps you post beautiful pictures or keeps track of tasks, there is always an app that is useful to someone.

You may ask: if there are so many applications, why should you try to create another one. Isn't there too much competition? All this is true, but fresh creative ideas can win. If you can come up with something unique, you can capitalize on it.

Don't know how to program? No problem, you can learn. There are a lot of different courses on the Internet, including free ones. Alternatively, you can hire a developer to create an application based on your idea.

The end result is an application that will potentially generate relatively passive income.

1. Create online courses

Every person is an expert in something. Why not create an online course about your hobby?

There are several ways to create and deliver your own online courses. One of the easiest ways is to use sites like

How to calculate return on investment?— this question interests every investor. The main thing is to generate income, so it is always interesting how much you have earned and what profitability you have. By profitability, stocks, bonds, deposits, real estate and many others are compared. Any investor, trader or manager is interested in its effectiveness. Banks, management companies and brokers, when they advertise their services, like to lure customers with high interest rates. Profitability is one of the most important indicators by which you can evaluate the effectiveness of investments and compare with other investment alternatives. So, let's figure out what is the return on investment and how to calculate it.

Yield(rate of return, level of return) is the degree of increase (or decrease) of the invested amount over a certain period of time. Unlike income, which is expressed in nominal terms, that is, in rubles, dollars or euros, profitability is expressed as a percentage. Income can be received in two ways:

• interest income is interest on deposits, coupons on bonds, rent on real estate;
• an increase in the value of purchased assets - when the sale price of an asset is greater than the purchase price - this is real estate, gold, silver, oil and other commodity assets.

Assets such as real estate, stocks and bonds can combine two sources of income. The calculation of profitability is needed to assess the growth or decline of investments and is a criterion for assessing the effectiveness of investments.

How to calculate return on investment?

Generally speaking, returns are always calculated as profit (or loss) divided by the amount invested, multiplied by 100%. Profit is calculated as the amount of the sale of the asset - the amount of the purchase of the asset + the amount of cash payments received during the period of holding the asset, that is, interest income.

Formula 1

An example of calculating the return on investment.

We bought a share at a price of 100 rubles (investment amount), sold a share at a price of 120 rubles (amount of sale), received 5 rubles of dividends (cash payments) for the period of holding the share. We calculate the yield: (120-100+5)/100 = 0.25 ∗ 100% = 25%.

Formula 2

There is a second formula, according to which the profitability is calculated as the amount of the sale of the asset + the amount of cash payments divided by the amount of investments, minus 1, multiplied by 100%.

Profitability calculation example: (120+5)/100 - 1 ∗ 100% = 25%.

How to calculate the yield as a percentage per annum?

The formula for calculating simple yield does not take into account such an important parameter as time. 25% can be obtained in a month, or even in 5 years. How then is it correct to compare the returns on assets with different holding times? For this, they consider . Yield in percent per annum is calculated in order to compare the performance of assets with different holding times with each other. The yield in percent per annum is the yield reduced to a common denominator - the yield for the year.

For example, a bank deposit gives 11% per year, and some shares brought 15% for 1.5 years of holding them, which was more profitable? At first glance, the shares, they brought more profitability. But the investor owned them for half a year more, so their profitability is, as it were, stretched out in time compared to the deposit. Therefore, in order to correctly compare the deposit and shares, the return on shares must be recalculated as a percentage per annum.

To do this, the coefficient 365/T is added to the formula, where T is the number of days the asset is held.

Example of yield calculation:

We bought a share for 100 rubles and sold it 1.5 years later for 115 rubles. 1.5 years is 1.5*365=547 days.

(115-100)/100 ∗ 365/547 ∗ 100% = 10%. In this case, the deposit turned out to be slightly more profitable than shares.

Like forex, management companies, brokers and banks manipulate annual returns.

In any profitability advertisement, pay attention to the footnotes, specify what profitability is indicated in the advertisement and for what period. For example, in advertising sounds a yield of 48% per annum. But it can be obtained in just one month. That is, the company earned 4% per month and now proudly advertises a product that gives 4 * 12 = 48% per annum. Even you, having earned 1% per day on the stock exchange, can brag that you have earned 365% per annum) Only this profitability is virtual.

How to calculate the average annual return

The holding period of assets can be several years. At the same time, most assets do not grow by the same amount. Assets such as stocks can fall or rise by tens or hundreds of percent per year. Therefore, I want to know how much your investments grew on average per year. How then to calculate the average annual return? The average annual return is calculated by taking the root using the formula:

Formula 1

where n is the number of years the asset has been held.

An example of calculating the yield if we owned the stock for 3 years:

3√125/100 — 1 ∗ 100% = 7,72%

Formula 2

Another formula for calculating the average annual return is through exponentiation.

The yield using this formula is very easy to calculate in Excel. To do this, select the DEGREE function, in the Number line enter the quotient 125/100, in the Degree line enter 1/n, where instead of n specify the number of years, add -1 after the brackets.

In the cell, the formula will look like this =POWER(125/100;1/3)-1. To convert a number to a percentage, select the Percent cell format.

How to calculate the average annual return if the annual returns are known?

If the returns of the asset by years are known, then the average annual return can be calculated by multiplying the annual returns and taking the root of the product to a power equal to the number of years.

First, convert the returns from percentages to numbers.

For example, the first year yield + 20%, the second year -10%, the third year + 30%. In numbers it will be like this: 1.2, 0.9, 1.3. The yield is 3√1.2 * 0.9 * 1.3 - 1 * 100% = 11.9%.

These formulas take into account the effect of compound interest. The simple formula for calculating the yield does not take this into account and overstates the yield, which is not entirely correct.

Now you can calculate the return on your investments not only as a percentage per annum, but also as an average over several years. Next time I will write the correct and very simple way.

Psychological pressure is a serious hindrance to successful investments

Photo: Fotolia/klerik78

Russians do a good job of calculating compound interest, but the rest of the financial literacy indicators still remain. at a low level. Let's take a look at common mental traps that prevent successful investing and cause you to make mistakes.

1. The stock market is a game where people lose money.

The reasons for such an opinion may be different: bad personal experience, misunderstanding of the structure of the stock market, evaluation of only short-term results. This mindset makes many people not even consider investing in the stock market.

How to fight

To understand why investing in is different from gambling, you need to remember the original meaning of buying shares. A share is an official private property, a share in a company's business. It entitles you to a portion of the profits that the company earns. Too often people look at stocks as a trade item - to buy quickly and sell quickly, forgetting that this is a tool for investing in a business.

What would you say if your friend offered to invest in expanding his fledgling pizza chain? This is an investment in a small (risky) business, which will require the drafting of contracts and appropriate execution. The stock market is a ready-made infrastructure for investing in large (more stable) companies, using which you can quickly and easily acquire a stake in Sberbank, Gazprom, Google, Amazon or Tesla.

However, it seems that stocks are more risky, because their price can fluctuate greatly. This is because you can see market prices every day or even watch them change every minute. If someone were constantly calculating how much your friend's pizzeria costs, with all the pros and cons, taking into account the situation in the area, the actions of competitors, regulators, local politics, the price of wheat, cheese and much more, then he and his investors would go crazy. Prices in the stock markets reflect all the fears and hopes of investors and in the short term (weeks, months) can fluctuate greatly. However, the long-term (years) reflect the development of the business.

The ease of buying stocks and frequent price fluctuations confuse investors, and the urge to catch fast moves can really make investing a gamble.

2. Investing is very difficult if there is no financial education.

This is a direct consequence of low financial literacy. Unfortunately, many people do not even seek to get acquainted with the stock market, believing that investing is available only to professional bankers and managers. That they use multi-story formulas and large computers. This area seems to be something closer to rocket science than to the life of an ordinary person.

How to fight

There are proven approaches (strategies) for long-term investment that do not require you to have academic knowledge and work with huge amounts of information. For example, index investing or portfolio strategy. Everyone can understand them, understand the pros and cons for themselves and start successfully investing. In the West, such approaches have become widespread among private investors.

Buying shares is associated with oligarchs who turn billions, buy and sell factories and steamships. Ordinary people realize that this is not their level, and lose interest in the stock market.

It is always important to understand what exactly you are investing in (how it works and works) and why. You need to understand both the investment tool and the strategy for using it, which suits you personally. Do not rush, it is better to understand everything in detail. This is available to any literate person - and it is not necessary to receive a diploma from a special university.

3. I don't have enough money, stocks are only for the rich

Buying shares is associated with oligarchs who turn billions, buy and sell factories and steamships. Ordinary people realize that this is not their level, and lose interest in the stock market. Investing in a friend's pizzeria is still possible, but where are we before oil rigs and mechanical engineering.

How to fight

Knowledge is the key to successful investing. We need to look at the facts. On the stock exchange you can buy shares of the largest companies. Each share is a share in such a company. But a large company is divided into millions and billions of shares, so each of them is inexpensive. For example, Sberbank issued 21,586,948,000 ordinary shares and 1,000,000,000 preferred shares, which now cost about 155 and 126 rubles, respectively.

To buy shares, you need to open a brokerage account, and the broker may have its own limitations. On average, from 30-50 thousand rubles, you can start investing in shares. Moreover, this amount is enough to buy several shares of different companies.

4. I have already figured out everything and will get a 100% return

Fear and greed are frequent visitors to the stock market, who fight each other for the soul of an investor. Some people are terrified of losing money and avoid buying stocks. Others, on the contrary, having barely got acquainted with the topic and having read motivational offers on the websites of brokers (well, if not forex dealers), are overwhelmed with optimism and go to the financial markets with the firm intention of earning at least 100% per annum. Unfortunately, most often they become victims of marketing policies, do not control their risks and lose money.

How to fight

In this case, knowledge is power. You need to understand what you can count on by investing in the stock markets. Thus, the average annual return of the MICEX index since 2000 is 18%, the history of the American market of the XX century shows an average return of 10.1% per annum. If you invest in the growth of the market and do it for the long term, then you should be guided by approximately such figures. It is important to understand that the markets will not bring a stable return, like bank deposits: in one year, the return may be significantly above average, and in the next - negative.

If you hold investments that keep you awake at night, not only are they ruining your health, they likely won't be financially successful either.

Many investors want to increase their returns by choosing more promising stocks, but often overestimate their potential. The results of the greatest investor Warren Buffett over 50 years are 21.6% per annum (according to the New York Times).

It is worth noting that active work with stocks requires a lot of time, but does not guarantee results above the market ones. Ironically, most actively managed funds lose out to the market. Over a period of 20 years, only 20% of them have shown higher returns (according to Vanguard founder John Bogle).

5. I have nerves of steel and the most aggressive strategy suits me.

There are various investment strategies, options for the formation of an investment portfolio. One of the most important parameters when choosing is the psychology of a particular investor. If you hold investments that keep you awake at night, they don't just ruin your health. Chances are they won't be successful financially either, as you'll be more likely to sell them at the wrong time or make other mistakes while under psychological pressure.

The reason for the problems that arise is the investor's overestimation of the strength of his nerves. People tend to look at the returns they will potentially receive, but overlook the risks and volatility.

How to fight

Think risk first. Imagine and feel what will happen if your investment portfolio becomes 10% lighter. And how will you feel if by 20%? What about 50%? And if it does not grow right back, but hangs in the red for a long time? This needs to be thought about in advance and seriously.

The natural reaction is to sell everything and give up on the stock market, put an end to it. Most likely, this will be the main mistake. In investments, discipline and following the chosen strategy win. To ensure that your investments do not make you wake up in a cold sweat, it is worth deciding in advance on an acceptable level of risk.

6. I bought stocks, but they said on TV that they would fall tomorrow, so I sell faster

Sometimes investors run from investment to investment, randomly buying and selling, focusing on any information they hear. The reason for this behavior is the lack of strategy or ignoring it, that is, the lack of discipline. Perhaps the strategy was chosen without due confidence in it and is constantly called into question by the investor.

How to fight

First, you should make sure that you have an investment strategy (methodology). And you don't buy stocks because you heard something on TV today and read it on a blog tomorrow.

Secondly, you must understand how this strategy works. Make sure that it suits you and you are ready to follow it for many years. At the same time, you are not obliged to choose only one strategy: your investments can be divided into several.

Finally, when you have chosen your strategy and set off with it, you do not need to pay attention to all the news and rumors that do not affect how it works. The media is only too happy to exaggerate the importance of news, because it is their job and ratings. Your task is different - to follow your course and not worry about the little things.

Profitability(from him. rentabel- profitable, useful, profitable), a relative indicator of economic efficiency. Profitability comprehensively reflects the degree of efficiency in the use of material, labor and financial resources, as well as natural resources. The profitability ratio is calculated as the ratio of profit to the assets, resources or flows that form it. It can be expressed both in profit per unit of invested funds, and in the profit that each received monetary unit carries. Profitability rates are often expressed as a percentage.

Profitability indicators

Basic indicators:

• Return on equity (ROE Return On Equity)= Net income / Equity
• Gross margin= Gross profit / Revenue
• Profitability of sales(ROS Return On Sales) = Operating Profit / Revenue
• Return on assets(ROA Return On Assets) = Net Income / Assets or (Net Income + Interest Expense) / Assets

Additional indicators:

• Profitability of fixed assets= Net profit/Fixed assets
• Staff profitability(ROL) = Net profit / the amount of personnel costs (ph, and other costs associated with employees)
• Ratio of basic profitability of assets (Basic earning power)- the ratio of profit before taxes and interest receivable to the total value of assets. BEP = EBITDA/Assets × 100%
• Return on invested, permanent capital (ROIC)- the ratio of net operating profit to the average for the period of own and long-term borrowed capital. ROIC = EBIT × (100% - Income tax rate)/Invested capital. In a particular case, when using borrowed funds as invested capital, ROIC = (EBIT × (100% - income tax rate) - amount of % on borrowed capital) / (equity + borrowed capital)
• Return on equity (equity + long-term borrowings) (ROCE)
• Return on total assets (ROTA)= Profit before tax / Total assets
• Return on business assets (ROBA)
• Return on Net Assets (RONA)= Profit before tax / Net assets
• Profitability of production= Profit / (Cost of fixed assets + cost of working capital)
• Profitability of the margin- the ratio of the cost of production to its selling price
• etc. (see profitability ratios in financial ratios)

Profitability of sales

Profitability of sales(English) Return on Sales, ROS) - profitability ratio, which shows the share of profit in each earned ruble. It is usually calculated as the ratio of operating profit (profit before tax) for a certain period to the sales volume expressed in cash for the same period.

Return on sales = (operating profit / sales volume)

Return on sales is an indicator of a company's pricing policy and its ability to control costs. Differences in competitive strategies and product lines cause a significant variation in profitability of sales in different companies. It is often used to evaluate the operating efficiency of companies. However, it should be borne in mind that with equal values ​​of revenue, operating costs and profit before tax for two different firms, the profitability of sales can vary greatly due to the impact of interest payments on net profit.

Return on assets

Return on assets(English) return on assets, ROA) is a relative performance indicator, quotient of dividing the net profit received for the period by the total value of the organization's assets for the period. One of the financial ratios included in the group of profitability ratios. Shows the ability of the company's assets to generate profit.

Return on assets is an indicator of the profitability and efficiency of the company, cleared of the influence of the amount of borrowed funds. It is used to compare enterprises in the same industry and is calculated by the formula: Return on assets = Net profit for the period / Average value of assets for the period.

R a = P / A (\displaystyle Ra=P/A)

where: Ra - return on assets, P - profit for the period, A - average value of assets for the period.

RETURN ON ASSETS reflects how much profit there is for each ruble invested in the property of the organization.

Profitability of production

Profitability of production is calculated as the ratio of profit from sales to the sum of the costs of production and sales of products. The coefficient shows how much profit the company has from each ruble spent on the production and sale of products. This indicator can be calculated both for the enterprise as a whole and for its individual divisions or types of products.

Return on equity

Return on equity(English) return on equity, ROE) is a relative performance indicator, quotient of dividing the net profit received for the period by the equity of the organization. One of the financial ratios included in the group of profitability ratios. Shows the return on shareholder investment in terms of accounting earnings.

dupont formula

Despite its simplicity, the methodology reflects three important components: the structure of business risks, the dynamics of changes in risks, an additional assessment of the cost of capital

ROE = (Net Income / Revenue) × (Revenue / Assets) × (Assets / Equity)= (Net Profit Margin (NPM)) × (Asset Turnover) × (Cap Ratio) = (Net Income / Equity)

Profitability of contracting services

This indicator can be used to competitively evaluate the performance of each of the contractors, as well as to assess the savings from the provision of the service. It is calculated as the ratio of the difference in the costs of not providing and providing the service to the costs of providing the service.

Ru \u003d (Z 0 - Z 1) / Z 1

This implies that the service not provided will result in higher costs to the organization, such as fines.

Links

• Article on profitability from the financial encyclopedia
• Online calculator for calculating the profitability of a business idea

How to calculate profitability as a percentage?

Suppose there is a raw material, a finished product is made from it. The cost of raw materials, work, and other processes is 8000 rubles, and the sold product goes for 48000 rubles. It turns out that the cost of the product is 8000 rubles, it is sold for 48000 rubles, the net profit is 40000 rubles. How to calculate the percentage profitability of the entire production? And how to calculate the profitability of the sale?

In order not to be confused, you need to separate income from profit. In this example, the income is 48,000. The cost of 8,000 is subtracted from the income of 48,000 and we get a profit of 40,000. To determine the profitability, we divide the profit by the cost and multiply by 100, we get a profitability of 500. In this example, the profitability of production is 500 percent, but this is somewhere overseas. You need to incur business expenses, pay for shipping, other services and profitability may already be much less. Some novice merchants are very surprised when their cheap goods are not allowed through customs, as they are too cheap and they take payments not at the actual cost, but at the cost of the goods from directories, and the planned profitability drops significantly.

Valery Zarubinsky

Dear commentators and the author of the question! But the question is with a trick. The commentators drew the correct formulas. But, let's go down to the sinful earth and take a look at two documents - the balance sheet of the enterprise and the income statement. And what do we see there? And the income tax tax base (in the report) does not at all correspond to the amount of money in the account (the active part of the balance sheet). And, as a rule, the income tax base is much larger than the money in the account. But the money to pay the tax is withdrawn from the company's account, which reflects the availability of money, but not from the account where the accountant entered the result of the activity. So what should be considered the amount that should be considered profit? As soon as you deal with this task, then you can already proceed to the calculation of the value of profitability. So think!

The "physical" meaning of PROFITABILITY of products: how many rubles of profit each ruble invested in the manufacture and sale of this product brings.

In this case, P = [(48000 - 8000) / 8000] x100% = 500%

Everything is quite simple here if you consider the profitability of products, this is the ratio of profit to cost and expressed as a percentage, multiply by 100%, and in this case 40000/8000 * 100% = 500%, i.e. for each ruble invested in production, it turns out 5 rubles. The indicator is more than worthy.

gurgenator

Profitability of sold products:

ROM \u003d (profit from the sale of products, works, services / Cost of goods sold) * 100%

Profitability of sales (Margin on sales, Return on sales) - the ratio of operating profit (profit from sales, EBIT) of the company to its revenue (Sales).

ROS = EBIT/SALES = operating income/revenue × 100%

Profitability must be less than 1? What does it mean?

Lydia Novozhilova

The higher the profit, the lower the cost of fixed assets and working capital, and the more efficiently they are used, the higher the profitability of production, and hence the higher the economic efficiency of the industry. And vice versa.
In other words,
Profitability = (revenue - total cost) / revenue × 100%.
Economic sense: the share of profit in total revenue. The lower the profitability, the less the company earns on the sale of this type of product. Zero profitability means that the company spends on the production of products as much as it receives from its sale. If the profitability is negative, then the cost exceeds the sales revenue, the company operates at a loss, producing and selling these products. The concept of average profitability is very different depending on the industry. So, in the banking sector, profitability can reach up to 100% or more, in trade this indicator is in the range of 20-30%, in the food industry - 10-15%, in light industry 7-10%, in heavy engineering - 2-5%. %.

What is the maximum return possible?

Have you misunderstood the concept? Maybe profit?
The maximum is not limited! !
Profitability - an indicator of the effectiveness of the enterprise, characterizing the level of return on costs and the degree of use of funds.
Profitability - the ratio of profit to costs.
There are profitability of production, profitability of products, profitability of investments.
Profit - in economics - the income of those who offer entrepreneurial abilities to the economy. Economics distinguishes between normal and economic profits.
Profit - in accounting - the excess of income from the sale of goods and services over the costs of production and sale of these goods.
Profit is calculated as the difference between the proceeds from the sale of a product of economic activity and the sum of the costs of production factors for this activity in monetary terms.
In accounting, there are total (gross, balance sheet), net and accounting profits.

2% Profitability is it normal or what???

Marat Bailov

All answers are superficial. Indeed, at first glance, 2% profitability is not enough. But if this profitability is caused by the need to increase the company's turnover and entails an increase in overall profit, then it's fine. That is, with a revenue of 100 thousand 6%: profitability will give 6 thousand profit. Decreasing the margin will lead to a decrease in profitability, but will attract more customers and give an increase in revenue, for example, up to 400 thousand, which, with a profitability of 2%, will give a profit of 8 thousand rubles.
Something like this. That is, it is necessary to consider, only then it will be possible to draw conclusions.

Mamykina Natalia

I support Marat.
Although 8 thousand with a revenue of 400 is also not enough ....
But if the revenue is 4 million ....
But for the tax this will seem a little, very little ....
There are published levels of profitability for certain types of activities, and that's where the safe level of profitability is written.

Beth midler

This is very little. You will fall into the risk criteria of tax audits, defined by the Concept (Order of the Federal Tax Service). When analyzing your activities, in addition to low profitability, an almost equal value of income and expenses, a high share of VAT deductible, a low tax burden and other indicators will be clearly revealed. You will obviously draw attention to yourself.

profitability implies the ratio of results to costs or investments. If it is the return on equity, then the numerator will be net income, which should be allocated to consumption (dividends and employee benefits) and reinvestment in the business. If you are satisfied with this level of reinvestment, then it’s good, if not, then it’s not enough

What is profitable to trade so that the profitability is over 100%, i.e. 2 times?

MMM is just a paradox. After all, everyone knows that the pyramid will collapse anyway. Every fool believes that he will have time to scroll. And where is the government looking? After all, Mavrodi was imprisoned for what he is doing again. After all, this is a relapse. - 5 years ago

Rosenbom

The smaller the item, the greater the benefit. The most profitable commodity is seeds. It is very profitable to trade parsley - senderushka bunches. In the dashing 90s I was engaged in the zoo industry (leashes, collars and other crap), for some products the profit was up to 300% (although I did them myself)

Severis

Add to the question another definition such as "within the limits of legality" and the answer to your question will cost a lot of money.

However, I think there is still such a product. Intellectual work. Creative ideas.

Evrey77721

The manufacture of Cotton Candy is very highly profitable. From 100 grams of sugar, 3-4 cotton candy is obtained! In our city, sugar costs 7 hryvnia-kilograms, and Cotton Candy costs 5 hryvnia! Consequently, the profitability is 3000-4000 PERCENT! Of course, I did not take into account the cost of electricity, but with such a "rise" this is not a significant cost!

Humor first:

become the owner of a network company, their "products" have over 800% profitability.

well, or mmm-2012 (better to organize 2015).

Of course, none of the distributors, see the so-called partners, will see this money, I repeat: I'm talking about the organizers.

Now about the serious: profitability is not income at all and absolutely not profit.

You can make a loaf of bread for 3p, sell it for 6p, but if you didn’t attribute anything to the costs at cost, except for the manufacturing recipe, then, you understand for yourself) -100% it will be just a fiction.

Therefore, you can wind up 100%, but being friends with an intelligent accountant and financier is your direct responsibility if you also want to get income)

Businessmen: study. You should always be learning!

I remember about 10 years ago I bought goods for a private entrepreneur in a market in a small town. A product such as batteries in the wholesale market was 2-3 times the retail price. Now I'm thinking about most small goods from China margin over 100%.

Infiltrator

In Russia, almost everything has a markup of 100% or more. At least in rich cities. Only medicines have a 40% or 30% limit, and the rest of the goods do not have such restrictions. Entrepreneurs take advantage of this.

How to calculate the percentage of profitability?

Profitability of products - the ratio of (net) profit to the total cost. ROM = (PV/Cost) *100%
Profitability of fixed assets - the ratio of (net) profit to the value of fixed assets. ROFA = PE/Fixed assets *100%
Profitability of sales (Margin on sales, Return on sales) - profit from sales to revenue. ROS = Sales Profit/Revenue *100%
Profitability of personnel - the ratio of (net) profit to the average headcount. ROL = Net profit / Average headcount * 100%
Basic earning power ratio - the ratio of profit before taxes and interest receivable to the total value of assets. BEP = EBIT/Assets*100%
Return on assets (ROA) - the ratio of operating profit to the average amount of total assets for the period. ROA = Operating Profit/Assets*100%
Return on equity (ROE) is the ratio of net profit to the average equity over the period. ROE = Net profit/Equity*100%
Return on invested, permanent capital (ROIC) - the ratio of net operating profit to the average for the period of equity and long-term borrowed capital. ROIC = EBIT*(1-Income Tax Rate) / Invested Capital *100%. In a particular case, when using borrowed funds as invested capital, ROIC = (EBIT * (1-rate of income tax) - the amount of% on borrowed capital) / (own capital + borrowed capital)
Return on net assets (RONA) = Profit before tax / Net assets
Profitability of production \u003d Profit / (Cost of fixed assets + cost of working capital)
Profitability of the margin - the ratio of the cost of production to its selling price

Mark Makarov

No, I suck, to be honest. Instead of independently finding the answer to such an elementary question in Google (we still do not calculate the half-life of the uranium-236 isotope), people write here. On the Internet, the answer can be found in 3 minutes (here is the link: http://ktovdele.ru/chto-takoe-rentabelnost.html (do not believe me, I scored it: how to find profitability)), but for now they will answer, while you check, it’s true whether answered. Still, they do not ask for advice, but for exact formulas.