Few Important Mathematical Concept in Investing
Stumbling upon this blog post from one of the famous Financial Blogger from HKG ( 取之有道 ) Other than the famous “Rule of 72” which is well known by most of the value investors, below are few more mathematical concepts which I think is also rather important for anyone who is involving in stock investing. Concept explained : Rule of 72 ( by Investopedia ) The ' Rule of 72 ' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return , investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself.
