Join Rudolph Rosenberg for an in-depth discussion in this video Inflation and the value of money, part of Making Investment Decisions.
…Up to now, we did not go into unnecessary economics for…the sake of staying focused on the subject about investment decision-making.…There is though, the concept of inflation, which needs to be defined as it has…an impact on how you choose to dispose of your money and your return expectations.…In the field of economics, inflation describes the increase…in prices that we see on most products every year.…If you look…back at the prices of things you bought ten years ago, for…example, there is a very high chance that those were much lower.…
Every year prices go up by a few percentages which build up over time.…Some products of course can have a stable price for a few years.…And all products do not get their price increased every year.…But each product sees its price increase every…now and then, and on average prices go up…by 1 to 3%, depending on the year and on the country.…As prices go up regularly, it means that $100…will buy much more products today than in ten years.…In other words, your money is worth less and less every year.…
This course teaches the net present value (NPV) methodology, an investment evaluation formula used by countless publicly traded companies and financial analysts, in a way that makes it accessible and applicable to you—no finance background required. Rudolph Rosenberg explains what investments are, how they are measured, and what makes a good investment. Then he explores the NPV formula in depth, showing you how to evaluate your cash flows, choose a rate of return, and assess the risk of a particular investment. This all culminates in a look at how the principles of investment apply to three real-life scenarios that any individual or company might encounter.
- What is an investment?
- Understanding ROI
- What makes a good investment?
- Using the NPV formula
- Assessing risk
- Applying NPV to real-life situations