Six Numbers Every Investor Must Know
Making sense of Return, Risk, Diversification, Valuation, Leverage and Expenses
What you will learn
Evaluate the risk and return of an investment objectively
Distinguish among the different method of measuring risk
Identify the various approaches used for valuation
Recognise the role that uncorrelated asset classes played in providing enhanced return and diversification
Relate how investment expenses affect return of an investment
Compute the numbers used for measuring risk and return
For many, investment is a subject that is mysterious and quite intimidating. This unfortunate outcome is no coincidence. Many in finance like to speak a different language. The language is intimidating to outsiders. But suppose you want to progress in your career. In that case, you’ll need to engage deeply in investment terminology —it is the language of business, the lifeblood of the economy, and increasingly a dominant force in capitalism.
This course aims to provide you with the most central investing foundation so that you will never find finance intimidating again. Mastering these six numbers won’t make you a financial engineer—there are likely more than enough of those. Instead, internalizing these six numbers will provide the foundation for addressing financial issues with confidence.
This workshop provides the conceptual foundation for understanding the financial markets through these six numbers.
Numbers inform nearly every aspect of our investing lives; the challenge is knowing what to look for and how to interpret them.
These six numbers, if well understood by the practitioners, would make navigating the complex investing world a lot easier.
However, some numbers are more important than others. Sometimes, they prove what we doubt. Sometimes, they discredit what we believe. And on occasion, they permit us to say, “I told you so.” We need only look for them, and they are everywhere. They allow you to understand the context that you are investing in, verify claims made by gurus and take decisive action to benefit your portfolio.
Start breaking away from the novice stage by familiarising these six numbers.
Six numbers every investor must know show you what to look for in Return, Risk, Diversification, Valuation, Leverage and Expenses.
This short course will help participants ask the right questions to guide them in their investment decisions. It is not a blueprint for beating the market but a commonsense approach for understanding the conceptual basics of investing.