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Everyday Power - What is Return on Investment (ROI)?
Warren Buffett believes that return on investment (ROI) is an important metric to evaluate the profitability of an investment.
Why is it so important? Here's what you need to know about ROI.
1. ROI is a ratio that expresses the result of investment gain relative to its cost.
2. ROI doesn't tell the whole story of an investment if we allow for inflation, how long you hold it and related cost, etc.
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