This article is about the term in investing. For articles on other subjects having the same abbreviation, see ROI.

Return on Investment (ROI) is the benefit to an investor resulting from an investment of some resource. A high ROI means the investment's gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.[1] In purely economic terms, it is one way of relating profits to capital invested.

In business, the purpose of the return on investment (ROI) metric is to measure, per period, rates of return on money invested in an economic entity in order to decide whether or not to undertake an investment. It is also used as an indicator to compare different investments within a portfolio. The investment with the largest ROI is usually prioritized, even though the spread of ROI over the time-period of an investment should also be taken into account. Recently, the concept has also been applied to scientific funding agencies (e.g., National Science Foundation) investments in research of open source hardware and subsequent returns for direct digital replication.[2]

ROI and related metrics provide a snapshot of profitability, adjusted for the size of the investment assets tied up in the enterprise. ROI is often compared to expected (or required) rates of return on money invested. ROI is not net present value-adjusted and most school books describe it with a "Year 0" investment and two to three years income.

Marketing decisions have obvious potential connection to the numerator of ROI (profits), but these same decisions often influence assets usage and capital requirements (for example, receivables and inventories). Marketers should understand the position of their company and the returns expected.[3]

In a survey of nearly 200 senior marketing managers, 77 percent responded that they found the "return on investment" metric very useful.[3]

Return on investment may be calculated in terms other than financial gain. For example, social return on investment (SROI) is a principles-based method for measuring extra-financial value (i.e., environmental and social value not currently reflected in conventional financial accounts) relative to resources invested. It can be used by any entity to evaluate impact on stakeholders, identify ways to improve performance, and enhance the performance of investments.

As a decision tool it is simple to understand. The simplicity of the formula allows to freely choose variables, e.g., length of the calculation time, if overhead cost should be included, or details such as what variables are used to calculate income or cost components. To use ROI as an indicator for prioritizing investment projects is risky, since usually little is defined together with the ROI figure that explains what is making up the figure.[citation needed]

For long-term investments, the need for a Net Present Value adjustment is great. Similar to Discounted Cash Flow, a Discounted ROI should be used instead.

For a single-period review, divide the return (net profit) by the resources that were committed (investment):[3]

or

or

Complications in calculating ROI can arise when real property is refinanced, or a second mortgage is taken out. Interest on a second, or refinanced, loan may increase, and loan fees may be charged, both of which can reduce the ROI, when the new numbers are used in the ROI equation. There may also be an increase in maintenance costs and property taxes, and an increase in utility rates if the owner of a residential rental or commercial property pays these expenses.

Complex calculations may also be required for property bought with an adjustable rate mortgage (ARM) with a variable escalating rate charged annually through the duration of the loan.

Marketing not only influences net profits but also can affect investment levels too. New plants and equipment, inventories, and accounts receivable are three of the main categories of investments that can be affected by marketing decisions.[3]

RoA, RoNA, RoC, and RoIC, in particular, are similar measures with variations on how 'investment' is defined.[3]

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Return on investment - Wikipedia

KANSAS CITY, Mo. The owner of the Kansas City Chiefs is being accused in a lawsuit of improperly receiving hundreds of millions in state investment money through a kickback deal with New Mexico officials.

The Kansas City Star reported Sunday that the New Mexico State Investment Council filed the lawsuit late last month against Clark Hunt and HFV Asset Management over the politically-influenced investment deals.

Hunt didnt comment to the newspaper on the lawsuit Sunday morning. Hunts father, Lamar, founded the Chiefs franchise and is in the Pro Football Hall of Fame.

The lawsuit says Hunt made a deal 12 years ago with two men with political connections who promised to steer New Mexico investment money to a hedge fund in exchange for payments. Hunt was a partner in the hedge fund.

New Mexico awarded $300 million to the hedge fund and paid millions in management fees. The lawsuit said one of the investment funds lost $13 million during the period.

Hunt sought to gain unfair advantage by paying for influence over the process, New Mexico officials said in the lawsuit.

The accusations are tied to the pay-to-play scandal that took place during administration of former New Mexico Gov. Bill Richardson.

New Mexico has already negotiated more than $30 million in settlements related to the pay-to-play investment scandal.

Link:
Chiefs owner Clark Hunt being sued by New Mexico State Investment Council - FOXSports.com

This post first appeared on A Wealth of Common Sense.

A reader asks:

I wanted your advice about when do you recommend one sells holdings that have appreciated? I understand the concept of buying low but would appreciate your advice on when to sell. I understand reversion to the mean and have been guilty in the past of holding on too long, only to see all the gains melt away as the market corrected.

This is a topic that probably doesnt get enough time share for investors. All of investing is more of an art than a science but there are plenty of books and research papers written about what to buy but very few about when to sell.

Sure, there are plenty of aphorisms about when to sell. Buffett says his favorite holding period is forever. Then you have phrases like the following:

We sell the rips and buy the dips.

Let your winners run but cut your losers short.

No one ever went broke taking a profit.

Its one thing to be wrong, its another thing to stay wrong.

Were taking some gains off the table.

These are fun things to say but they dont provide much help in the moment when you see an investment rising or falling.

The true determinants of when to sell an investment can be boiled down to the following questions:What kind of investor are you? Whats your time horizon? Why did you buy in the first place?

The wonderful and terrifying thing about investing is that you have two opportunities to be right and two opportunities to be wrong on every trade or investment when you buy and when you sell.

An intelligent investor spends some time up front before the buy occurs to consider when or why they would sell a holding. If you dont have some pre-established rules, guidelines or systems in place to understand what your sell trigger will be youre really just guessing.

Theres no right or wrong answer on when to sell because investing is personal. There are plenty of terrible reasons to sell Im nervous; someone on financial television scared me out of the market; I saw some guy on Twitter post a GIF about the how reckless the Fed is; I feel like the market is due for a correction.

Here are what I consider to be some legitimate reasons to sell an investment:

Rebalancing. Rebalancing back to target allocation weights is the simplest way to sell a little of whats been working and buy a little of what hasnt. Rebalancing is a systematic form of value investing. You can never time these things perfectly but this is one of the simplest forms of risk management available to investors who have a defined risk profile for their portfolio. How or when you do it probably doesnt matter nearly as much as following through with whatever your pre-established guideline are.

There are better opportunities available. Some investors are constantly searching the investable landscape for new opportunities in comparison to their current holdings. I find it can be a useful exercise to think through whether you would buy your current holdings all over again if you started from scratch (taking into account things like transaction costs and taxes).

Targets have been met. Other investors have price or valuation targets. Figuring out the intrinsic value of a security or asset class is never easy but coming up with estimates for where you will buy and where you will sell is a good way to place constraints on yourself from allowing investments to get away from you.

Your rules tell you to sell. Quantitative investment strategies continue to gain in popularity. Im a huge proponent of a rules-based approach but have witnessed far too many people who profess to invest this way change their process when things arent going their way. It requires discipline to follow your rules even when it doesnt feel right (and most of the time the right move wont feel right at the time).

Circumstances have changed. This one is a little more squishy, but there are times when your original investment thesis doesnt play out. Or your risk profile has changed because of a life or work event. Many investors de-risk as they approach retirement age. Others need to sell because they actually need to spend the money theyve been investing. The whole reason we invest is to delay current consumption for future consumption. You risk profile can and should change as you approach your future consumption date(s).

Regret also plays a huge role in any investment decision so it can be helpful to determine which would make you more miserable holding and seeing your investment crater or selling and seeing it go much higher.

Further Reading:When Holding is the Hardest Part

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When to sell your investments - Yahoo Finance

KANSAS CITY, Mo. -- The owner of the Kansas City Chiefs is being accused in a lawsuit of improperly receiving hundreds of millions in state investment money through a kickback deal with New Mexico officials.

The Kansas City Star reports Sunday the New Mexico State Investment Council filed the lawsuit late last month against Clark Hunt and HFV Asset Management over the politically influenced investment deals.

Hunt didn't comment to the newspaper on the lawsuit Sunday morning. Hunt's father, Lamar, founded the Chiefs franchise and is in the Pro Football Hall of Fame.

The lawsuit says Hunt made a deal 12 years ago with two men with political connections who promised to steer New Mexico investment money to a hedge fund in exchange for payments. Hunt was a partner in the hedge fund.

New Mexico awarded $300 million to the hedge fund and paid millions in management fees. The lawsuit said one of the investment funds lost $13 million during the period.

"Hunt sought to gain unfair advantage by paying for influence over the process," New Mexico officials said in the lawsuit.

The accusations are tied to the pay-to-play scandal that took place during administration of former New Mexico Gov. Bill Richardson.

New Mexico has already negotiated more than $30 million in settlements related to the pay-to-play investment scandal.

Read more:
Chiefs owner Clark Hunt sued over New Mexico investment deal - ESPN

The owner of the Kansas City Chiefs struck a pay-to-play deal with former Gov. Bill Richardsons administration, the State Investment Council alleges in a new lawsuit, claiming the billionaire NFL scion secured hundreds of millions in state investment money by leaning on Richardson insiders Anthony and Marc Correra.

The father and son are at the heart of a massive Richardson administration investment scandal that continues to shake out almost eight years after Richardson left office. Richardson and the Correras have denied any wrongdoing, though Marc Correra, who filed for bankruptcy last year, has admitted he received about $20 million in fees from fund managers and others doing business with the State Investment Council.

The council, responsible for managing $21.5 billion in public trust funds, claims Chiefs owner Clark Hunt, 52, was able to secure $300 million in investments for a hedge fund in which he was a partner by using the Correras influence with former state investment officer Gary Bland.

The lawsuit, filed in the First Judicial District Court in Santa Fe in late August, is just the latest legal case involving investment deals during the Richardson administration. In July, a state district judge approved a deal between the state and a Chicago-based investment firm, Vanderbilt Capital, for $24.25 million in a decadelong case. Vanderbilt had lost about $90 million in state funds through bad investments, though a judge did not determine there was evidence the company had committed fraud.

The state also has a pending lawsuit against the Correras, as well as Bland and Guy Riordan, a Richardson friend and former securities broker.

Hunt, the son of Lamar Hunt, who founded the Chiefs franchise as the AFLs Dallas Texans in 1960, became CEO of the team after his fathers death in 2006.

A message left for an Albuquerque lawyer of Hunts was not immediately returned.

The State Investment Council says in its lawsuit that the $300 million allocation from the council to the Hunt hedge fund was three times larger than any other received by fund managers who responded to the investment councils request for proposals.

Hunt and his business partner met face to face in 2005 with the Correras at the Albuquerque International Sunport, according to the complaint, where the Correras told Hunt that by virtue of Anthony Correras close relationship with Governor Richardson and their close relationship with Bland, they had influence with respect to the selection process. The suit claims fund managers referred to the elder Correra as gatekeeper to Richardson and state investments.

Hunt and his partner, Barrett Wissman, who is not named as a defendant by the suit, paid Marc Correra a fee, according to the complaint, and Bland then awarded the Hunt-connected hedge fund the $300 million allocation, even though the State Investment Councils hedge fund adviser did not recommend that hedge fund be given any allocation whatsoever.

Bland was authorized to award the investment funds unilaterally, without advising the investment council or obtaining its consent. But the millions in management fees paid to the hedge fund enriched Hunt and Wissman, the suit claims, at the expense of the states billions in public trust funds, which include the Land Grant Permanent Fund and Severance Tax Permanent Fund.

The suit claims Hunt authorized the fund to pay a broker-dealer associated with Marc Correra 25 percent of those management fees as a finders fee, despite the fact, as the suit claims, that Correra did not find the well-publicized request for proposals but rather was able to tilt the selection process.

Hunt and Wissman knew they were paying for influence and were participating in a fraudulent scheme, the complaint alleges, seeking restitution, civil penalties, compensatory and punitive damages and others.

The hedge fund underperformed the state benchmarks; one of its investments lost the State Investment Council more than $13 million, the suit says.

The complaint names as defendants Hunt, the hedge fund which received the SIC allocation known at the time as Arbitex Asset Management, now called HFV Asset Management and 20 unnamed defendants. These John Does are, the State Investment Council says, Hunt family trusts through which Hunt owned some or all of his interest in HFV and/or of the trustees of those trusts.

The case was assigned to District Court Chief Judge Sarah Singleton, according to court documents.

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State sues owner of NFL's KC Chiefs in investment scandal - Santa Fe New Mexican

JAKARTA, Sept 4 (Reuters) - Indonesias financial regulator has changed its rules governing investments by non-bank financial institutions, according to a new regulation signed last week, in a move aimed at getting those firms to support government infrastructure projects.

The OJK revised a regulation first implemented in January last year that required insurance companies, pension funds and other non-bank financial institutions to keep a minimum percentage of government bonds in their portfolio to help provide stability to the debt market.

In the revised version, the OJK has expanded the options for required investment products to include instruments issued by state-owned companies and their subsidiaries used to finance government infrastructure projects.

The new list of instruments includes asset-backed securities, as well as the so called limited participation mutual funds (RDPT), according to the regulation signed on Aug. 29, which took effect immediately.

The government is trying to create a market for such instruments. Last week, state-controlled toll road operator PT Jasa Marga sold 2 trillion rupiah of securities backed by the future revenue from one of its toll roads.

Other state-owned firms plan to raise funds in a similar way as part of a presidential drive to secure $10 billion in additional inflows, capitalising on Standard & Poors May 19 upgrade of the countrys credit ratings to investment grade.

Accelerating infrastructure projects is among the main focuses of Indonesias government and project financing is one the main hurdles.

The World Bank estimated that Southeast Asias largest economy would have to spend $500 billion to meet its infrastructure needs in the next five years and public spending alone wouldnt be enough.

The overall amount of government-linked securities the OJK requires non-bank financial institutions must keep as a minimum percentage of their investments remains unchanged from last years rules.

Such securities must make up at least 30 percent of pension funds and life insurance companies investments and 20 percent of general insurance firms investments. (Reporting by Gayatri Suroyo and Fransiska Nangoy; Editing by Sam Holmes)

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Indonesia's regulator eases investment rule to aid infrastructure funding - Reuters

Nutrition information tends to be complicated and contradictory, making an answer to the question, What should I eat? anything but simple.

This is particularly true when it comes to carbohydrates. On one hand, current recommendations call for carbohydrates to be a major part of your diet. On the other hand, very popular low-carbohydrate diets are at odds with these recommendations.

Low-carbohydrate diets work because eating too much carbohydrate leads to fat storage and weight gain, so restricting carbohydrates can promote fat loss. People who follow low-carbohydrate diets tend to lose weight, so this approach makes sense. It is also likely that people who follow low-carbohydrate diets find them easier to stick to than other diets, so they may end up eating fewer calories.

Considering that the typical American diet contains too much carbohydrate from sugars and refined grains and not enough whole grains, restricting carbohydrates may have some benefits. But there is another approach: be smart about your carbohydrate choices. Instead of cutting out all carbohydrates, focus on reducing refined grains and sugars and emphasizing whole grains.

Sources of carbohydrates include whole grains (such as whole wheat bread), refined grains (white bread), and sugars. Both refined grains and sugars tend to raise blood glucose rapidly, a measure called the glycemic index, which leads to an increase in certain hormones. One of these is the hormone insulin, which stimulates the uptake of nutrients into cells, including the storage of fat in adipose tissue. This is one reason why eating carbohydrates are linked to fat gain and why restricting carbohydrates leads to fat loss.

But carbohydrates from whole grains dont raise either blood glucose or insulin as much. This low and slow response has several benefits, including improved blood glucose regulation, lower triglycerides, and, potentially, reduced fat storage. For these reasons, complex carbohydrates from whole grains are called good carbs, in contrast to refined grains and sugars, known as bad carbs.

You can be smart about carbs by limiting your intake of sugars, especially added sugars, and refined grains while increasing your consumption of whole grains, fruits and vegetables that are high in fiber. When comparing food labels, look for foods that contain whole grains (the first ingredient should be something like whole wheat flour) and higher levels of fiber. But be aware that some foods, like many breakfast cereals, contain whole grains but are also high in added sugar. The best advice is to get the majority of your carbohydrates from real food, including vegetables, fruits, whole grains and legumes, rather than from processed foods.

Something to keep in mind is that although low-carbohydrate diets are associated with weight loss and good health, they are not the only way to achieve these benefits. Indeed, people who are considered to be fit and healthy have a wide range of eating patterns. The one factor they have in common is that they are active. It seems that regular exercise is just as important as what you eat when it comes to promoting health. So, regardless of what you eat, make physical activity part of your daily routine.

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HEALTH AND FITNESS: How to be carb smart - Aiken Standard

You have to be able to take care of yourself, before saving the world, said Alina Cioletti, a fitness and wellness coordinator for Longwood University.

The Health and Fitness Center had their 10-year anniversary on Aug. 31, going from 10 a.m. to 7 p.m. The event sought to incorporate all of campus, trying to offer something for everyone.

I can remember the grand opening, saidDean of Wellness MatthewMcGregor.McGregor was there for the opening of the gym before then there wasnt a place for students to maintain a fitness life who were not involved in sports.

Half of the gym was left open for students to come in and have their normal workout, but then it was hoped that the students would stay for the Wellness Fair and to check out the other festivities.

The Involvement and the Human Resources Faculty Benefits fairs coincided with the anniversary, at different points of the day. The Health and Fitness Center also decided to have their annual wellness fair on their anniversary date.

We decided to reach out and collaborate with others, said Associate Director of Campus Recreation Marissa Musumeci. We didnt just want it to be another event.

All events took place inside or outside of the building with water provided at different stations.

I hope to see that we have a lot of faculty, students, and staff members; part of the day will be raffles and games, said Musumeci leading up to the event. The other part will be educational, where people can learn about services on the university or in the community.

Outside of the Health and Fitness Center, WMLU, Longwood's student radio, provided music. There was also a collection of students participating in a variety of outdoor activities. There were moon bounces both inside and outside of the facility.

A few of the specialty activities involved in the fair included the moon bounces, aqua massages, oxygen bar, paraffin wax and smoothies.

There were also machines to help with stretching of the back muscles along with free smoothies all offered in the back of the gym. McGregor said the goal is to help students, faculty and staff understand the value of living a healthy life style.

Both faculty and student staff members worked during the anniversary and enjoying the festivities when their shift ended.

Working the fair is really fun because you get to meet a lot of people around the campus, said kinesiologysophomore Katy Bonilla. (Im) most excited about the free stuff and (the) aqua massage.

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Health and Fitness Center celebrated its 10th anniversary on Thursday - The Rotunda

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Little boy elementary student with backpack and sandwich box isolated on white

Little boy elementary student with backpack and sandwich box isolated on white

SUNDAY, Sept. 3, 2017 (HealthDay News) -- Backpacks can mean backaches for schoolchildren, but an orthopedic surgeon has advice for parents and kids about how to keep soreness at bay.

"Parents should inspect their child's backpack from time to time," said Dr. Joshua Hyman of New York-Presbyterian Morgan Stanley Children's Hospital in New York City.

Kids "often carry much more than they should, with extra shoes, toys, electronic devices and other unnecessary items," he explained in a hospital news release.

Hyman suggests that before sending kids off to school, parents should follow these backpack safety tips:

Researching family history? Looking for a photo of something you remember from childhood? Want to see what was happening the day you were born? Try our digital archive, where you can search the text of every edition we've published -- in all its iterations -- going back to 1855.

A unique book that provides an up-close and personal look at farm life. Yours for only $29.95 for a limited time.

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Take the Back Pain Out of Backpacks - Quad City Times

Everyone at one point in time entering university has probably heard of the infamous freshman 15, the so-called 15 pounds first-year students often gain.

So how can youa bright-eyed, bushy-tailed freshmanavoid said 15 pounds? How can you stay healthy throughout the entire school year? Its actually pretty simple. Eat a well-rounded diet and exercise.

Before we get to the tips, lets address a few things.

Being healthy is 80 per cent diet and 20 per cent exercise, so believe it or not, but consuming your weight in alcohol and following that with a basket of chicken wings will not be balanced out by a bottle of water and 30 minutes of running the next day. Lastly, slimness isnt the same thing as healthiness, so regardless of your body size, keep your health habits in check!

So now that we have that out of the way, maybe keeping off the freshman 15 isnt enough to deter you from late nights of drinking, eating junk food and consuming a litre of your preferred energy drink. But, there are plenty of other reasons one can consider. To name a few, youll have more energy, and eating well and exercising can promote better mental health, so youll feel more confident overall.

Without further ado, here are some tips from an upper-year to stay healthy in university.

Exercise regularly.

Figure out what you enjoy and make time for it in your schedule. Carleton has a great gym and offers classes throughout the week. Or if youre cheap, go on a scenic run or do some yoga around our gorgeous campus.

Drink up.

Water, that is. Water promotes healthy skin, energizes the muscles, balances your bodily fluids and keeps your brain in top shape.

Follow your moms orders and eat your fruits and veggies.

Believe it or not, your body is not made up of ramen and chips. Fruits and veggies provide your body the nutrition it needs to stay healthy that typically wont be found in your mac and cheese boxes.

Try to sleep 6-8 hours a night.

I personally think its really unhealthy that our generation promotes thriving off of little to no sleep constantly. Your body needs sleep. Look up any medical study and it will show you that your body needs sleep to repair itself and work at its optimal condition. Most of the best students I know get ample amounts of sleep, do well in their academics and are able to have extracurriculars because they have good time management skills. So moral of the story: prioritize sleep.

I hope you find these tips useful and youll be able to thrive this year in university, not just survive. Remember that balance is key: a night on the town with your friends is always a good idea if done in moderation. Best of luck!

Photo by Angela Tilley

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Health and Fitness Blog: Fight off the Freshman 15 - The Charlatan