Thursday, April 13, 2017

How important is Business Growing Rate in my investment?

Business Growing Rate in my investment:

(1) The compound growing ratio of the business in a percentage change of variable in a specific time (annually).

(2) They are the growing rate of: Revenue, Gross Profit, Net Profit, Cash, & Dividend.

(3) Personally, i think it is not possible to determine the specific value of a business in a specific time, but it is very important to determine the annual compound growth rate of the business based on several past historical trends together with current business & management's plan.

(4) To compare it with other investment.

So, Business Growing Rate (BGR) is one of the most crucial thing to look at in my investment.

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