What is the difference between STRET and STRETD?
Both STRET and STRETD measure the average annual return that you will get on an investment, according to your input variables being met. They can be calculated over any time period before or after tax. The difference between them is what assumptions is made with the dividends. STRET assumes tha ...
- What are the main advantages of the STRET/STRETD approach in Conscious Investor?
The following is a summary of some of the advantages of using STRET and STRETD in Conscious Investor: (1) The Conscious Investor approach using STRET and STRETD provides you with what an investor needs, namely a calculation of the total return that you will get, with an investment under the inv ...
- What are STRET and STRETD? How do you calculate them?
STRET and STRETD provide the answer to the most important question for every investor. This question is, "What returns can I expect on a stock purchase under reasonable assumptions?" You can even calculate the expected return under different margins of safety. The output of STRET and STRETD is ...
- Why do STRET and STRETD sometimes increase and sometimes decrease when the investment period is increased?
Consider STRET. The quick answer is that in the short-term, total return as calculated by STRET is heavily influenced by whether the stock is over-priced or under-priced, according to the current PE ratio, compared to the forecast PE ratio. In the longer term, this influence starts to be replac ...
- Why do STRET and STRETD always increase when the payout ratio is increased?
When a company has a high return on equity and return on capital it is generally better that they do not pay dividends since it is likely that they will do better with the money than you will. Berkshire Hathaway is an example of a company that pays no dividends and this is the way the investors ...
