warren recites a 600 b.c investment equation (value investment)

Investment Equation

Investment Equation   There isn’t a single universal “investment equation” that applies to all situations. However, there are a couple of key metrics used to evaluate investments and some formulas that can be helpful. Here’s a breakdown: Return on Investment (ROI): This is a common metric to gauge the profitability of an investment. ROI Formula: ROI = (Net Return / Investment Cost) * 100 (expressed as a percentage) Net Return = Selling Price – Purchase Price + Income from Investment…