This article is about investment in finance. For investment in macroeconomics, see Investment (macroeconomics).

Investment is time, energy, or matter spent in the hope of future benefits actualized within a specified date or time frame. This article concerns investment in finance.

In finance, investment is buying or creating an asset with the expectation of capital appreciation, dividends (profit), interest earnings, rents, or some combination of these returns. This may or may not be backed by research and analysis. Most or all forms of investment involve some form of risk, such as investment in equities, property, and even fixed interest securities which are subject, among other things, to inflation risk. It is indispensable for project investors to identify and manage the risks related to the investment.

In finance, investment is the purchase of an asset or item with the hope that it will generate income or appreciate in the future and be sold at the higher price.[1] It generally does not include deposits with a bank or similar institution. The term investment is usually used when referring to a long-term outlook. This is the opposite of trading or speculation, which are short-term practices involving a much higher degree of risk. Financial assets take many forms and can range from the ultra safe low return government bonds to much higher risk higher reward international stocks. A good investment strategy will diversify the portfolio according to the specified needs.

The most famous and successful investor of all time is Warren Buffett. In March 2013 Forbes magazine had Warren Buffett ranked as number 2 in their Forbes 400 list.[2] Buffett has advised in numerous articles and interviews that a good investment strategy is long term and choosing the right assets to invest in requires due diligence. Edward O. Thorp was a very successful hedge fund manager in the 1970s and 1980s that spoke of a similar approach.[3] Another thing they both have in common is a similar approach to managing investment money. No matter how successful the fundamental pick is, without a proper money management strategy, full potential of the asset cannot be reached. Both investors have been shown to use principles from the Kelly criterion for money management.[4] Numerous interactive calculators which use the Kelly criterion can be found online.[5]

In contrast, dollar (or pound etc.) cost averaging and market timing are phrases often used in marketing of collective investments and can be said to be associated with speculation.

Investments are often made indirectly through intermediaries, such as pension funds, banks, brokers, and insurance companies. These institutions may pool money received from a large number of individuals into funds such as investment trusts, unit trusts, SICAVs etc. to make large scale investments. Each individual investor then has an indirect or direct claim on the assets purchased, subject to charges levied by the intermediary, which may be large and varied. It generally, does not include deposits with a bank or similar institution. Investment usually involves diversification of assets in order to avoid unnecessary and unproductive risk.

The Code of Hammurabi (around 1700 BC) provided a legal framework for investment, establishing a means for the pledge of collateral by codifying debtor and creditor rights in regard to pledged land. Punishments for breaking financial obligations were not as severe as those for crimes involving injury or death.[6]

In the early 1900s purchasers of stocks, bonds, and other securities were described in media, academia, and commerce as speculators. By the 1950s, the term investment had come to denote the more conservative end of the securities spectrum, while speculation was applied by financial brokers and their advertising agencies to higher risk securities much in vogue at that time. Since the last half of the 20th century, the terms speculation and speculator have specifically referred to higher risk ventures.

Business revolves around the factor of investing; financially, time, in the future and successful investors will generally focus on certain fundamental metrics for their gains. A value investor is aware that when considering the health of a company, the fundamentals associated with it, are a highly influencing factor. They include aspects related to financial and operational data, preferred by some of the most successful investors; for example, Warren Buffett and George Soros. The financial details, such as, earnings per share and sales growth, are essential aids for an investor in determining stocks trading below their worth.

The price to earnings ratio (P/E), or earnings multiple, is a particularly significant and recognized fundamental ratio, with a function of dividing the share price of stock, by its earnings per share. This will provide the value representing the sum investors are prepared to expend for each dollar of company earnings. This ratio is an important aspect, due to its capacity as measurement for the comparison of valuations of various companies. A stock with a lower P/E ratio will cost less per share, than one with a higher P/E, taking into account the same level of financial performance; therefore, it essentially means a low P/E is the preferred option.[7]

An instance, in which the price to earnings ratio has a lesser significance, is when companies in different industries are compared. An example; although, it is reasonable for a telecommunications stock to show a P/E in the low teens; in the case of hi-tech stock, a P/E in the 40s range, is not unusual. When making comparisons the P/E ratio can give you a refined view of a particular stock valuation.

For investors paying for each dollar of a company's earnings, the P/E ratio is a significant indicator, but the price-to-book ratio (P/B) is also a reliable indication of how much investors are willing to spend on each dollar of company assets. In the process of the P/B ratio, the share price of a stock is divided by its net assets; any intangibles, such as goodwill, are not taken into account. It is a crucial factor of the price-to-book ratio, due to it indicating the actual payment for tangible assets and not the more difficult valuation, of intangibles. Accordingly, the P/B could be considered a comparatively, conservative metric.

For investment purposes, an essential factor relates to how a company finances its assets, especially if it involves a sizable value stock and is a situation in which debt/equity ratio has a significant influence. Similar to the P/E ratio, the debt/equity ratio, indicates the proportion of financing, a company has obtained from debt; for example, loans, bonds and equity, such as, the issuance of shares and stock, which vary between industries. An indication to investors that all is not financially sound with a company, relates to above-industry debt/equity figures, particularly if an industry is experiencing a challenging, adverse business environment.

A factor that sometimes remains unaware to investors is that the earnings of a company generally do not equal the amount of cash generated. This is due to companies reporting their financials utilising, Generally Accepted Accounting Principles (GAAP). It is a standard framework of guidelines for the financial accounting practices used in any given jurisdiction. International Financial Reporting Standards (IFRS) are commonly used, worldwide.

Free cash flow is a metric that determines for an investor the sum of actual cash remaining in a company after deduction of any capital investments. In general, it is preferable to for a company to boast a positive free cash flow, but similar to the debt-equity ratio, this metric assumes greater significance in a difficult business environment.

Arguably, the most commonly utilized valuation metric is Earnings Before Interest, Tax, Depreciation and Amortization, generally referred to as EBITDA. This metric relates to the basic profits made, prior to the influences and intricacies of accounting deductions becoming issues of the true profit line of a company. This particular metric is recognized as the primary standard of private mergers and acquisitions.[8]

For a company competing in a high growth industry, an investor could expect a significant acquisition premium, which is a buyout offer, several times over the most recent EBITDA. In various instances, it has been known for private equity firms, to pay multiples of up to 6-8 times the EBITDA. However, some buyers could make the decision that even given these relatively high valuations, the offer from a buyer does not take into consideration past expenditures and future potential product growth.

In certain cases, an EBITDA may be sacrificed by a company, in order for the pursuance of future growth; a strategy frequently used by corporate giants, such as, Amazon, Google and Microsoft, among others. This is a business decision that can impact negatively on buyout offers, founded on EBITDA and can be the cause of many negotiations, failing. It may be recognized as a valuation breach, with many investors maintaining that sellers are too demanding, while buyers are regarded as failing to realize the long-term potential of, expenditure or acquisitions.

Types of financial investments include:

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Investment - Wikipedia, the free encyclopedia

Investment management is the professional asset management of various securities (shares, bonds and other securities) and other assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds).

The term asset management is often used to refer to the investment management of collective investments, while the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as money management or portfolio management often within the context of so-called "private banking".

The provision of investment management services includes elements of financial statement analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Coming under the remit of financial services many of the world's largest companies are at least in part investment managers and employ millions of staff.

Fund manager (or investment advisor in the United States) refers to both a firm that provides investment management services and an individual who directs fund management decisions.

According to a Boston Consulting Group study, the assets managed professionally for fees reached an all-time high of US$62.4 trillion in 2012, after remaining flat-lined since 2007.[1] Furthermore, these industry assets under management were expected to reach US$70.2 trillion at the end of 2013 as per a Cerulli Associates estimate.

The global investment management industry is highly concentrated in nature, in a universe of about 70,000 funds roughly 99.7% of the US fund flows in 2012 went into just 185 funds. Additionally, a majority of fund managers report that more than 50% of their inflows go to just three funds.

The business of investment has several facets, the employment of professional fund managers, research (of individual assets and asset classes), dealing, settlement, marketing, internal auditing, and the preparation of reports for clients. The largest financial fund managers are firms that exhibit all the complexity their size demands. Apart from the people who bring in the money (marketers) and the people who direct investment (the fund managers), there are compliance staff (to ensure accord with legislative and regulatory constraints), internal auditors of various kinds (to examine internal systems and controls), financial controllers (to account for the institutions' own money and costs), computer experts, and "back office" employees (to track and record transactions and fund valuations for up to thousands of clients per institution).

Key problems include:

Institutions often control huge shareholdings. In most cases they are acting as fiduciary agents rather than principals (direct owners). The owners of shares theoretically have great power to alter the companies via the voting rights the shares carry and the consequent ability to pressure managements, and if necessary out-vote them at annual and other meetings.

In practice, the ultimate owners of shares often do not exercise the power they collectively hold (because the owners are many, each with small holdings); financial institutions (as agents) sometimes do. There is a general belief[by whom?] that shareholders in this case, the institutions acting as agentscould and should exercise more active influence over the companies in which they hold shares (e.g., to hold managers to account, to ensure Boards effective functioning). Such action would add a pressure group to those (the regulators and the Board) overseeing management.

However there is the problem of how the institution should exercise this power. One way is for the institution to decide, the other is for the institution to poll its beneficiaries. Assuming that the institution polls, should it then: (i) Vote the entire holding as directed by the majority of votes cast? (ii) Split the vote (where this is allowed) according to the proportions of the vote? (iii) Or respect the abstainers and only vote the respondents' holdings?

The price signals generated by large active managers holding or not holding the stock may contribute to management change. For example, this is the case when a large active manager sells his position in a company, leading to (possibly) a decline in the stock price, but more importantly a loss of confidence by the markets in the management of the company, thus precipitating changes in the management team.

Some institutions have been more vocal and active in pursuing such matters; for instance, some firms believe that there are investment advantages to accumulating substantial minority shareholdings (i.e. 10% or more) and putting pressure on management to implement significant changes in the business. In some cases, institutions with minority holdings work together to force management change. Perhaps more frequent is the sustained pressure that large institutions bring to bear on management teams through persuasive discourse and PR. On the other hand, some of the largest investment managerssuch as BlackRock and Vanguardadvocate simply owning every company, reducing the incentive to influence management teams. A reason for this last strategy is that the investment manager prefers a closer, more open and honest relationship with a company's management team than would exist if they exercised control; allowing them to make a better investment decision.

The national context in which shareholder representation considerations are set is variable and important. The USA is a litigious society and shareholders use the law as a lever to pressure management teams. In Japan it is traditional for shareholders to be low in the 'pecking order,' which often allows management and labor to ignore the rights of the ultimate owners. Whereas US firms generally cater to shareholders, Japanese businesses generally exhibit a stakeholder mentality, in which they seek consensus amongst all interested parties (against a background of strong unions and labour legislation.

Conventional assets under management of the global fund management industry increased by 10% in 2010, to $79.3 trillion. Pension assets accounted for $29.9 trillion of the total, with $24.7 trillion invested in mutual funds and $24.6 trillion in insurance funds. Together with alternative assets (sovereign wealth funds, hedge funds, private equity funds and exchange traded funds) and funds of wealthy individuals, assets of the global fund management industry totalled around $117 trillion. Growth in 2010 followed a 14% increase in the previous year and was due both to the recovery in equity markets during the year and an inflow of new funds.

The US remained by far the biggest source of funds, accounting for around a half of conventional assets under management or some $36 trillion. The UK was the second largest centre in the world and by far the largest in Europe with around 8% of the global total.[2]

The 3-P's (Philosophy, Process and People) are often used to describe the reasons why the manager is able to produce above average results.

At the heart of the investment management industry are the managers who invest and divest client investments.

A certified company investment advisor should conduct an assessment of each client's individual needs and risk profile. The advisor then recommends appropriate investments.

The different asset class definitions are widely debated, but four common divisions are stocks, bonds, real estate and commodities. The exercise of allocating funds among these assets (and among individual securities within each asset class) is what investment management firms are paid for. Asset classes exhibit different market dynamics, and different interaction effects; thus, the allocation of money among asset classes will have a significant effect on the performance of the fund. Some research suggests that allocation among asset classes has more predictive power than the choice of individual holdings in determining portfolio return. Arguably, the skill of a successful investment manager resides in constructing the asset allocation, and separately the individual holdings, so as to outperform certain benchmarks (e.g., the peer group of competing funds, bond and stock indices).

It is important to look at the evidence on the long-term returns to different assets, and to holding period returns (the returns that accrue on average over different lengths of investment). For example, over very long holding periods (e.g. 10+ years) in most countries, equities have generated higher returns than bonds, and bonds have generated higher returns than cash. According to financial theory, this is because equities are riskier (more volatile) than bonds which are themselves more risky than cash.

Against the background of the asset allocation, fund managers consider the degree of diversification that makes sense for a given client (given its risk preferences) and construct a list of planned holdings accordingly. The list will indicate what percentage of the fund should be invested in each particular stock or bond. The theory of portfolio diversification was originated by Markowitz (and many others). Effective diversification requires management of the correlation between the asset returns and the liability returns, issues internal to the portfolio (individual holdings volatility), and cross-correlations between the returns.

There are a range of different styles of fund management that the institution can implement. For example, growth, value, growth at a reasonable price (GARP), market neutral, small capitalisation, indexed, etc. Each of these approaches has its distinctive features, adherents and, in any particular financial environment, distinctive risk characteristics. For example, there is evidence that growth styles (buying rapidly growing earnings) are especially effective when the companies able to generate such growth are scarce; conversely, when such growth is plentiful, then there is evidence that value styles tend to outperform the indices particularly successfully.

Large asset managers are increasingly profiling their equity portfolio managers to trade their orders more effectively. While this strategy is less effective with small-cap trades, it has been effective for portfolios with large-cap companies.[3]

Fund performance is often thought to be the acid test of fund management, and in the institutional context, accurate measurement is a necessity. For that purpose, institutions measure the performance of each fund (and usually for internal purposes components of each fund) under their management, and performance is also measured by external firms that specialize in performance measurement. The leading performance measurement firms (e.g. Frank Russell in the US or BI-SAM [1] in Europe) compile aggregate industry data, e.g., showing how funds in general performed against given indices and peer groups over various time periods.

In a typical case (let us say an equity fund), then the calculation would be made (as far as the client is concerned) every quarter and would show a percentage change compared with the prior quarter (e.g., +4.6% total return in US dollars). This figure would be compared with other similar funds managed within the institution (for purposes of monitoring internal controls), with performance data for peer group funds, and with relevant indices (where available) or tailor-made performance benchmarks where appropriate. The specialist performance measurement firms calculate quartile and decile data and close attention would be paid to the (percentile) ranking of any fund.

Generally speaking, it is probably appropriate for an investment firm to persuade its clients to assess performance over longer periods (e.g., 3 to 5 years) to smooth out very short-term fluctuations in performance and the influence of the business cycle. This can be difficult however and, industry wide, there is a serious preoccupation with short-term numbers and the effect on the relationship with clients (and resultant business risks for the institutions).

An enduring problem is whether to measure before-tax or after-tax performance. After-tax measurement represents the benefit to the investor, but investors' tax positions may vary. Before-tax measurement can be misleading, especially in regimens that tax realised capital gains (and not unrealised). It is thus possible that successful active managers (measured before tax) may produce miserable after-tax results. One possible solution is to report the after-tax position of some standard taxpayer.

Performance measurement should not be reduced to the evaluation of fund returns alone, but must also integrate other fund elements that would be of interest to investors, such as the measure of risk taken. Several other aspects are also part of performance measurement: evaluating if managers have succeeded in reaching their objective, i.e. if their return was sufficiently high to reward the risks taken; how they compare to their peers; and finally whether the portfolio management results were due to luck or the managers skill. The need to answer all these questions has led to the development of more sophisticated performance measures, many of which originate in modern portfolio theory. Modern portfolio theory established the quantitative link that exists between portfolio risk and return. The Capital Asset Pricing Model (CAPM) developed by Sharpe (1964) highlighted the notion of rewarding risk and produced the first performance indicators, be they risk-adjusted ratios (Sharpe ratio, information ratio) or differential returns compared to benchmarks (alphas). The Sharpe ratio is the simplest and best known performance measure. It measures the return of a portfolio in excess of the risk-free rate, compared to the total risk of the portfolio. This measure is said to be absolute, as it does not refer to any benchmark, avoiding drawbacks related to a poor choice of benchmark. Meanwhile, it does not allow the separation of the performance of the market in which the portfolio is invested from that of the manager. The information ratio is a more general form of the Sharpe ratio in which the risk-free asset is replaced by a benchmark portfolio. This measure is relative, as it evaluates portfolio performance in reference to a benchmark, making the result strongly dependent on this benchmark choice.

Portfolio alpha is obtained by measuring the difference between the return of the portfolio and that of a benchmark portfolio. This measure appears to be the only reliable performance measure to evaluate active management. In fact, we have to distinguish between normal returns, provided by the fair reward for portfolio exposure to different risks, and obtained through passive management, from abnormal performance (or outperformance) due to the managers skill (or luck), whether through market timing, stock picking, or good fortune. The first component is related to allocation and style investment choices, which may not be under the sole control of the manager, and depends on the economic context, while the second component is an evaluation of the success of the managers decisions. Only the latter, measured by alpha, allows the evaluation of the managers true performance (but then, only if you assume that any outperformance is due to skill and not luck).

Portfolio return may be evaluated using factor models. The first model, proposed by Jensen (1968), relies on the CAPM and explains portfolio returns with the market index as the only factor. It quickly becomes clear, however, that one factor is not enough to explain the returns very well and that other factors have to be considered. Multi-factor models were developed as an alternative to the CAPM, allowing a better description of portfolio risks and a more accurate evaluation of a portfolio's performance. For example, Fama and French (1993) have highlighted two important factors that characterize a company's risk in addition to market risk. These factors are the book-to-market ratio and the company's size as measured by its market capitalization. Fama and French therefore proposed three-factor model to describe portfolio normal returns (FamaFrench three-factor model). Carhart (1997) proposed to add momentum as a fourth factor to allow the short-term persistence of returns to be taken into account. Also of interest for performance measurement is Sharpes (1992) style analysis model, in which factors are style indices. This model allows a custom benchmark for each portfolio to be developed, using the linear combination of style indices that best replicate portfolio style allocation, and leads to an accurate evaluation of portfolio alpha.

Increasingly, international business schools are incorporating the subject into their course outlines and some have formulated the title of 'Investment Management' or 'Asset Management' conferred as specialist bachelor's degrees (e.g. Cass Business School, London). Due to global cross-recognition agreements with the 2 major accrediting agencies AACSB and ACBSP which accredit over 560 of the best business school programs, the Certification of MFP Master Financial Planner Professional from the American Academy of Financial Management is available to AACSB and ACBSP business school graduates with finance or financial services-related concentrations. For people with aspirations to become an investment manager, further education may be needed beyond a bachelors in business, finance, or economics. Designations, such as the Chartered Investment Manager (CIM) in Canada, are required for practitioners in the investment management industry. A graduate degree or an investment qualification such as the Chartered Financial Analyst designation (CFA) may help in having a career in investment management.[4]

There is no evidence that any particular qualification enhances the most desirable characteristic of an investment manager, that is the ability to select investments that result in an above average (risk weighted) long-term performance[citation needed]. The industry has a tradition of seeking out, employing and generously rewarding such people without reference to any formal qualifications.[citation needed]

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Investment management - Wikipedia, the free encyclopedia

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Beware of the next VIX trick

Seasonality has hit the VIX recently, but that doesnt mean that the index is an easy play for traders.

9/11/2015 4:32pm

SPDR S&P 500 ETF Trust

196.74

+0.89 +0.45%

Savvy investors may want to take a position in the financial services sector regardless of the Feds decision on interest rates, writes Jeff Reeves.

By Thursday, the market will have the answer to its favorite guessing game: will the Federal Reserve pull the trigger on the first interest-rate hike since 2006? But clarity on the Feds stance will do little to shield the stock market from further volatility.

9/14/2015 4:59am

U.S. 3 Month Treasury Bill

0.033

0.00 0.00%

Chinas stock markets sold off sharply ,despite an interest-rate cut from the countrys central bank over the weekend, with the benchmark Shanghai Composite falling more than 20% from June highs to close in bear territory. Photo: Getty Images.

9/11/2015 3:14pm

CBOE Volatility Index

23.2

-1.17 -4.80%

ISTANBUL--Turkey's lira sank to a fresh record low against the dollar in early Monday trading, extending its losses as political uncertainties and a mounting Kurdish insurgency compound concerns over a broader economic slowdown in emerging markets led by China.

9/14/2015 5:02am

Japanese Yen

120.161

-0.4270 -0.3541%

X

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DEFINITION of 'Return On Investment - ROI'

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investments cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.

The return on investment formula:

In the above formula, "Gain from Investment refers to the proceeds obtained from the sale of the investment of interest. Because ROI is measured as a percentage, it can be easily compared with returns from other investments, allowing one to measure a variety of types of investments against one another.

Return on investment is a very popular metric because of its versatility and simplicity. Essentially, return on investment can be used as a rudimentary gauge of an investments profitability. ROI can be very easy to calculate and to interpret and can apply to a wide variety of kinds of investments. That is, if an investment does not have a positive ROI, or if an investor has other opportunities available with a higher ROI, then these ROI values can instruct him or her as to which investments are preferable to others.

For example, suppose Joe invested $1,000 in Slice Pizza Corp. in 2010 and sold his shares for a total of $1,200 a year later. To calculate the return on his investment, he would divide his profits ($1,200 - $1,000 = $200) by the investment cost ($1,000), for a ROI of $200/$1,000, or 20%.

With this information, he could compare the profitability of his investment in Slice Pizza with that of other investments. Suppose Joe also invested $2,000 in Big-Sale Stores Inc. in 2011 and sold his shares for a total of $2,800 in 2014. The ROI on Joes holdings in Big-Sale would be $800/$2,000, or 40%. Using ROI, Joe can easily compare the profitability of these two investments. Joes 40% ROI from his Big-Sale holdings is twice as large as his 20% ROI from his Slice holdings, so it would appear that his investment in Big-Sale was the wiser move.

Yet, examples like Joe's reveal one of several limitations of using ROI, particularly when comparing investments. While the ROI of Joes second investment was twice that of his first investment, the time between Joes purchase and sale was one year for his first investment and three years for his second. Joes ROI for his first investment was 20% in one year and his ROI for his second investment was 40% over three. If one considers that the duration of Joes second investment was three times as long as that of his first, it becomes apparent that Joe should have questioned his conclusion that his second investment was the more profitable one. When comparing these two investments on an annual basis, Joe needed to adjust the ROI of his multi-year investment accordingly. Since his total ROI was 40%, to obtain his average annual ROI he would need to divide his ROI by the duration of his investment. Since 40% divided by 3 is 13.33%, it appears that his previous conclusion was incorrect. While Joes second investment earned him more profit than did the first, his first investment was actually the more profitable choice since its annual ROI was higher.

Examples like Joes indicate how a cursory comparison of investments using ROI can lead one to make incorrect conclusions about their profitability. Given that ROI does not inherently account for the amount of time during which the investment in question is taking place, this metric can often be used in conjunction with Rate of Return, which necessarily pertains to a specified period of time, unlike ROI. One may also incorporate Net Present Value (NPV), which accounts for differences in the value of money over time due to inflation, for even more precise ROI calculations. The application of NPV when calculating rate of return is often called the Real Rate of Return.

Keep in mind that the means of calculating a return on investment and, therefore, its definition as well, can be modified to suit the situation. it all depends on what one includes as returns and costs. The definition of the term in the broadest sense simply attempts to measure the profitability of an investment and, as such, there is no one "right" calculation.

For example, a marketer may compare two different products by dividing the gross profit that each product has generated by its associated marketing expenses. A financial analyst, however, may compare the same two products using an entirely different ROI calculation, perhaps by dividing the net income of an investment by the total value of all resources that have been employed to make and sell the product. When using ROI to assess real estate investments, one might use the initial purchase price of a property as the Cost of Investment and the ultimate sale price as the Gain from Investment, though this fails to account for all of the intermediary costs, like renovations, property taxes and real estate agent fees.

This flexibility, then, reveals another limitation of using ROI, as ROI calculations can be easily manipulated to suit the user's purposes, and the results can be expressed in many different ways. As such, when using this metric, the savvy investor would do well to make sure he or she understands which inputs are being used. A return on investment ratio alone can paint a picture that looks quite different from what one might call an accurate ROI calculationone incorporating every relevant expense that has gone into the maintenance and development of an investment over the period of time in questionand investors should always be sure to consider the bigger picture.

Recently, certain investors and businesses have taken an interest in the development of a new form of the ROI metric, called "Social Return on Investment,"or SROI. SROI was initially developed in the early 00's and takes into account social impacts of projects and strives to include those affected by these decisions in the planning of allocation of capital and other resources.

For a more in-depth look at ROI, see:FYI on ROI: A Guide to Calculating Return on Investment.

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Return On Investment (ROI) Definition | Investopedia

A self-help book is one that is written with the intention to instruct its readers on solving personal problems. The books take their name from Self-Help, an 1859 best-seller by Samuel Smiles, but are also known and classified under "self-improvement", a term that is a modernized version of self-help. Self-help books moved from a niche position to being a postmodern cultural phenomenon in the late twentieth century.[1]

Informal guides to everyday behaviour might be said to have existed almost as long as writing itself. Certainly ancient Egyptian "Codes" of conduct 'have a curiously modern note: "you trail from street to street, smelling of beer...like a broken rudder, good for nothing....you have been found performing acrobatics on a wall!"'.[2] Indeed, 'some social observers have suggested that the Bible is really the first and most significant and most helpful of self-help books.[3]

In Western culture, a line of descent may be traced back from Samuel Smiles' Self-Help to when 'the Renaissance concern with self-fashioning produced a flood of educational and self-help materials':[4] thus 'the Florentine Giovanni della Casa in his book of manners published in 1558 suggests: "It is also an unpleasant habit to lift another person's wine or his food to your nose and smell it"'.[5] The Middle Ages saw the genre personified in ' Conduir-amour ("guide in love matters")';[6] while in classical Rome Cicero's "On Friendship" and "On Duties" became 'handbooks and guides...through the centuries'[7] - not to mention Ovid's "Art of Love" and "Remedy of Love". The former has been described as 'the best sex book, as valid for San Francisco and London as for ancient Rome', dealing as it does 'with practical problems of everyday life: where to go to meet girls, how to start a conversation with them, how to keep them interested, and...how to be sociable rather than athletic in bed';[8] the latter, equally essential, contains 'a series of instructions, as frank as they are ingenious and brilliantly expressed, on falling out of love'.[9]

It is however in the last half-century or so that the humble self-help book has jumped to cultural prominence, a fact admitted by both the advocates and the critics - often highly polarised - of the self-improvement genre. Some would 'view the buying of such books...as an exercise in self-education'.[10] Others, more critical, still concede that 'it is too prevalent and powerful a phenomenon to overlook, despite belonging to "pop" culture'.[11]

For better or worse, it is clear that self-help books have had 'a very important role in developing social concepts of disease in the twentieth century', and that they 'disseminate these concepts through the general public so that ordinary people acquire a language for describing some of the complex and ineffable features of emotional and behavioral life'.[12]

Where traditional psychology and psychotherapy will tend to be written in an impersonal, objective mode, many self-help books 'involve a first-person involvement and often a conversion experience':[13] in keeping with the self-help support groups on which they often draw, horizontal peer-support and validation is thus offered the reader, as well as advice "from above".

Yet arguably with the movement from the self-help group to the individual "self-improvement" reader something of that peer support has been lost, reflecting the broader way that 'over the course of the last three decades of the twentieth-century, there has been a significant shift in the meaning of "self-help"'.[14] A collective enterprise has become a refashioning of the individual self: 'in less than thirty years, "self-help" - once synonymous with mutual aid - has come to be understood...as a largely individual undertaking'.[15]

'What social theorists call "detraditionalization" - the tendency of advancing capitalism to disrupt the cultures and traditions that may stand in the way of the accumulation of profit'[16] has been seen as underpinning behind the self-help phenomenon in two (overlapping) ways. The first is the eclipse of the informal, communitarian transmission of folkways and folk wisdom: 'the charge that when self-help writers are being simplistic and repetitious, they are also being banal and unoriginal, merely offering their readers platitudes...on behalf of the best parts of folk wisdom',[17] may simply be because they are providing a formal conduit for the conveyance of such "home truths" in an increasingly unstructured and anomic world.

The other result of the loss of 'Weber's "traditional behavior...everyday action to which people have become habitually accustomed"'[18] is an increased social pressure for Self-fashioning: 'while one's identity might have been formerly anchored in (and limited by) a community...the self-creating self must create a written narrative of his or her life'.[19] self-help books 'written and read for the purpose of helping people build a personal philosophy'[20] contribute to that end.

The danger may arise however of an overestimation of the possibilities of change, given that 'we do not in any meaningful sense intend or choose our birth, our parents, our bodies, our language, our culture, our thoughts, our dreams, our desires, our death, and so on'.[21] In the PsyBlog-Understand Your Mind , Dr. Jeremy Dean states that "the dark side of hope is that claims about potential improvement can, and are, grossly exaggerated, in order to prise open our wallets. Similarly a bright and breezy approach to potential change may lead us to believe that changing ourselves is easy, when often it requires considerable, sometimes monumental, effort".[22] The 'Twelve-step "Traditions"...have fostered a notion of individual self-mastery or self-control as limited...use of the Serenity Prayer encourages individuals to accept what they cannot change, to find courage to change what they can change, and to seek wisdom in discerning the difference'.[23] Self-help books will indeed often acknowledge formally that 'this book does not replace the need for therapy and counselling for troubled relationships or survivors of a dysfunctional family'.[24] In practice however, fueled by competitive advertising, often 'such books hold out to the reader the promise of a virtually "instantaneous" transformation';[25] and there ensues something of a 'built-in contradiction of the celebratory arc of the self-help book combined with the stubborn realities'[26] of the human world.

The reader may go away disillusioned; or may seek for the answer in the next book, so that 'self-help books can become an addiction in and of themselves'[27] - a process that will 'have fostered the belabored self'[28] rather than relieving it. In that perspective, since all self-help books 'have at least one common message. They tell you that you have the power to change yourself....By implication all of these books are saying, if you are in pain, if you are stuck and can't seem to change, it's no one's fault but your own'.[29]

It is important to note that the popularity of self-help books may cause a placebo effect and thus appear to be an effective way to change an individual's way of thinking about their life and selves. This is because individuals will believe these books will change their lives like others have endorsed.

Self-help books often focus on popular psychology such as romantic relationships, or aspects of the mind and human behavior which believers in self-help feel can be controlled with effort. Self-help books typically advertise themselves as being able to increase self-awareness and performance, including satisfaction with one's life. They often say that they can help you achieve this more quickly than with conventional therapies. Many celebrities have marketed self-help books including Jennifer Love Hewitt, Oprah Winfrey, Elizabeth Taylor, Charlie Fitzmaurice, Tony Robbins, Wayne Dyer, Deepak Chopra and Cher.

Like most books, self-help books can be purchased both offline and online; 'between 1972 and 2000, the numbers of self-help books...increased from 1.1 percent to 2.4 percent of the total number of books in print'.[30]

Stephen Potter's "Upmanship" books are satirical takes on status-seeking under the cloak of sociableness - 'remember, that it is just on such occasions that an appearance of geniality is most important'[31] - cast in advice-book form. A few decades later, with the neoliberal turn, such advice - 'Remember the reality of self-interest'[32] - would be being seriously advocated in the self-help world: in bestsellers like Swim with the Sharks, all 'kinds of seemingly benign guile are encouraged', on the principle that 'status displays matter: just don't be suckered by them yourself'.[33]

Perhaps the best-known fictional embodiment of the world of the self-help book is Bridget Jones. Taking 'self-help books...[as] a new form of religion'[34] - 'a kind of secularised religion - a sort of moral values lite'[35] - she struggles to integrate its often conflicting instructions into a coherent whole. 'She must stop beating herself over the head with Women Who Love Too Much and instead think more towards Men Are from Mars, Women Are from Venus...see Richard's behaviour less as a sign that she is co-dependent and loving too much and more in the light of him being like a Martian rubber band'.[36] Even she, however, has the occasional crisis of faith, when she wonders: 'Maybe it helps if you've never read a self-help book in your life'.[37]

In the BookWorld Companion, it is suggested that 'those of you who have tired of the glitzy world of shopping and inappropriate boyfriends in Chicklit, a trip to Dubious Lifestyle Advice might be the next step. An hour in the hallowed halls of invented ills will leave you with at least ten problems you never knew you had, let alone existed'.[38]

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Self-help book - Wikipedia, the free encyclopedia

(Ph by Aline Bouma)

I wrote an article about blogging before, and I was a total bitch about everything.

You promoting your sub-par articles (three times a day), following-and-then-unfollowing-as-soon-as-they-follow-back strategies, leaving comments on other blogs that are mainly so youll generate traffic (youre fooling nobody, not even when you attempt to make the comment meaningful), schmoozing up to the big-timers, buying your audience?

Im not here for it.I will never be here for it.

However, I am here,and youre just going to have to deal.

And I have more tips. So I figured Id be a total bitch about blogging some more. These blogging tips from a bitch might help make you the awesome and interesting person you can be if you drop all the nonsense.

Of course, this is all my personal opinion. But its worth listening to.

I know blogging, I know people and sweetie?

I dont care enough about you to lie.

Continue reading

See more here:
The Self Help Hipster

The Irritable Bowel Syndrome (IBS) Self Help and Support Group, established in 1987, is an award-winning patient advocate group in support of self-management for those who suffer from IBS, those who are looking for support for someone who has IBS, and medical professionals who want to learn more about IBS. The IBS Self Help and Support Group is the largest on-line community for people with Irritable Bowel Syndrome.

This IBS Support Group works to educate those who are living with IBS and to increase awareness about this and other functional gastrointestinal disorders. Much of the involvement in this group involves members sharing their knowledge in the group's forums. IBS Support Group Meetups occur in several regional locations and are noted in the meetups link. In addition to forums, the website provides a list of helpful links, a very comprehensive booklist, Apple iPhone, iPad, iPod Touch, Android and Blackberry device apps and media,research studies, brochures, medical tests, diagnostic criteria, dietandlow FODMAP diet, treatment, Prescription Medical Foods, and medications about, and for, the disease. Our Medical Advisory Board helps to ensure that evidenced-based medicine and clinical accuracy is shared on our website. Many of our Board members are noted medical and clinical experts in the field of IBS and Digestive Health. Our Moderators and Medical Advisory Board provide advice in the form of essays, related to IBS, Digestive Health and Chronic Illness.

At the IBS Support Group, we know that peers are often the best source of information, support and understanding. That's why you'll find more ways to express yourself and connect with your community at the IBS Support Group than anywhere else on the Web! Be sure to drop into the chat room on Sunday evenings for our free for all chat session. Joining our membership is free!.

More medical professionals refer their patients to the IBS Self Help and Support Group website than any other IBS website on the internet.

IBS ForumsThe world's first and currently the largest collection of postings about IBS by sufferers - in excess of 800,000, making it the largest community created specifically for IBS sufferers.

IBS BlogsA blog is an easy-to-use web site, where you can quickly post thoughts, interact with people, and more. IBS Blogs, is the first and only blogging community created specifically for IBS sufferers!

IBS StoriesWe invite you to write a sentence, paragraph or story that describes what IBS means to you. Tell your story or perhaps learn from others.

IBS Penpalsoffers FREE penpals: an opportunity to meet people from around the world through the Internet who suffers from, or knows someone who suffers from IBS. To find a penpal, you can message people listed in our list.

FODMAP Worldwide Dietitian RegistryWe have established the only worldwide registry of Dietitians who are knowledgeable about administering a low FODMAP diet.

My Health ProfileOptional personal health information such as your symptoms, treatments, prescription medications, other conditions, etc... that you can share and search with other members.

Continue reading here:
Irritable bowel syndrome - IBS Self Help and Support Group

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Definition:

Motivation is defined as the process that initiates, guides, and maintains goal-oriented behaviors. Motivation is what causes us to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge.

It involves the biological, emotional, social, and cognitive forces that activate behavior. In everyday usage, the term motivation is frequently used to describe why a person does something.

For example, you might say that a student is so motivated to get into a clinical psychology program that she spends every night studying.

"The term motivation refers to factors that activate, direct, and sustain goal-directed behavior... Motives are the "whys" of behavior - the needs or wants that drive behavior and explain what we do. We don't actually observe a motive; rather, we infer that one exists based on the behavior we observe." (Nevid, 2013)

Psychologists have proposed a number of different theories of motivation, including drive theory, instinct theory, and humanistic theory.

Anyone who has ever had a goal (like wanting to lose ten pounds or wanting to run a marathon) probably immediately realizes that simply having the desire to accomplish something is not enough. Achieving such a goal requires the ability to persist through obstacles and endurance to keep going in spite of difficulties.

There are three major components to motivation: activation, persistence, and intensity.

Activation involves the decision to initiate a behavior, such as enrolling in a psychology class.

Persistence is the continued effort toward a goal even though obstacles may exist, such as taking more psychology courses in order to earn a degree although it requires a significant investment of time, energy, and resources.

Finally, intensity can be seen in the concentration and vigor that goes into pursuing a goal. For example, one student might coast by without much effort, while another student will study regularly, participate in discussions and take advantage of research opportunities outside of class.

So what are the things that actually motivate us to act? Psychologists have proposed a number of different theories to explain motivation:

Different types of motivation are frequently described as being either extrinsic or intrinsic. Extrinsic motivations are those that arise from outside of the individual and often involve rewards such as trophies, money, social recognition or praise. Intrinsic motivations are those that arise from within the individual, such as doing a complicated cross-word puzzle purely for the personal gratification of solving a problem.

Browse the Psychology Dictionary

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References:

Nevid, J. (2013). Psychology: Concepts and applications. Belmont, CA: Wadworth.

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Motivation: The Psychological Factors That Guide Us