The primary idea behind investing is to earn profits. You invest in certain assets and certain markets based on your assessment of profitability. The profitability is generally measured based on how much you have invested and how long you have invested. It is normally referred to as Return on Investment. By the way, how does the concept of return on investment (ROI) help you assess the profitability of an investment?
How do you assess the profitability of your investment?
- Thread starter nomad
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For you to find out if your investment is profitable or not, I think you will have to study the supply and demand in the market. Something that has so much demand will definitely be profitable.
Return on Investment is a critical metric used to evaluate the profitability of an investment by quantifying returns relative to costs, facilitating comparative analysis, aiding in risk assessment, evaluating performance, and informing decision making.
I tend to assess the profitability of my investments by manually monitoring the market. I study the profitability potential if assets and understand the future prospects of assets in the long run.
