So, if you’ve been trying to figure out how to make money from a stock portfolio, then you’ve probably tried to estimate how much your money is worth. I can promise you that there are several ways to look at your finances and make a determination about your worth. One of those ways is to look at your cash flow.
Cash flow is the money you actually have available to you. It’s basically the interest you pay on your investment loan over the long term. Because most of us are not in the business of investing, we all tend to think of cash flow as a number. But, its value can be much higher than that number, as we will see in a moment.
The value of cash flow is a function of the amount of money you have available to you, the amount of your interest you pay, and the interest you receive from your investments.
Most of us make money by investing. So the fact that more you put in your life as opposed to your investments is going to bring in more cash flow. The same is true for you as an investor. To get the same amount of cash flow, you need to invest more than you earn. In fact, we can assume that the optimal amount of money you have available to you is the amount of money you need to invest to get the same cash flow as someone else.
This is why we care about cash flow. We are always concerned with how we can increase our cash flow. We want to make sure that we always have sufficient funds to invest, and we want to ensure that we have enough to invest at the optimal level. The more you invest in your life, the more you can make.
How much is the optimal cash flow? The best way to answer this is by looking at the two most important factors in the market: growth and volatility. We’re going to assume that the optimal cash flow per share is 0.8, the value that would be optimal for a company with $100M in annual revenue. This is called the “market capitalization,” which is simply the market value of your firm divided by its assets.
This is an important metric to consider because it allows us to measure how fast a firm’s value is growing. In other words, if your company’s value is $X, then its market capitalization will be X/100M.
For example, here is how the market capitalization of our company was growing in the last 12 months. Note that it’s growing at a very high rate of 0.8%. The reason this is a very strong growth is that all of our financial assets (debt, cash, and investments) have grown in this same time period. The other thing to keep in mind is that the value of assets doesn’t only depend on the market value.
The difference between a stock and bond is usually small. For example, if the stock is on the market at $1 for 3 weeks, the bond is $1.0. If the bond is $1.2, then the bond is $1.3. If the bond is $3.5, then the bond is $3.5. And so on.
For a fixed, non-dividend paying investment, i.e. a bond, the value of a share will rise or fall by 1.0 per share every time the stock changes hands. If the stock rises, then the value of the bond will increase. If the stock falls, then the value of the bond will decrease. If the bond is held for a long time, then the value of the bond will grow as a stock does.
