Comments on: The Fallacy of Return on Investment http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/ Investing and Personal Finance Fri, 19 Mar 2010 03:28:34 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: Money Hackers Carnival #9 - Scream Edition! http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-5414 Money Hackers Carnival #9 - Scream Edition! Wed, 23 Apr 2008 02:12:12 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-5414 [...] knows a thing or two about return on investment. The original Halloween movie was made for $325,000 back in 1978 and grossed $47 million. Not bad [...] [...] knows a thing or two about return on investment. The original Halloween movie was made for $325,000 back in 1978 and grossed $47 million. Not bad [...]

]]> By: Carnival of Personal Finance # 145: Baby Education Edition | 8ZU http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-5115 Carnival of Personal Finance # 145: Baby Education Edition | 8ZU Fri, 11 Apr 2008 20:03:02 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-5115 [...] Cheap from Quest For Four Pillars explains the Fallacy of Return On Investment, and says, "Return on equity is a more accurate measure than return on [...] [...] Cheap from Quest For Four Pillars explains the Fallacy of Return On Investment, and says, "Return on equity is a more accurate measure than return on [...]

]]> By: Real Estate Return On Investment and Leverage | Moolanomy http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-4753 Real Estate Return On Investment and Leverage | Moolanomy Thu, 27 Mar 2008 13:02:40 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-4753 [...] The Fallacy of Return on Investment at Quest For Four Pillars [...] [...] The Fallacy of Return on Investment at Quest For Four Pillars [...]

]]> By: Carnival of Personal Finance # 145: Baby Education Edition | Million Dollar Journey http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-4657 Carnival of Personal Finance # 145: Baby Education Edition | Million Dollar Journey Mon, 24 Mar 2008 13:11:18 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-4657 [...] Cheap from Quest For Four Pillars explains the Fallacy of Return On Investment, and says, "Return on equity is a more accurate measure than return on [...] [...] Cheap from Quest For Four Pillars explains the Fallacy of Return On Investment, and says, "Return on equity is a more accurate measure than return on [...]

]]> By: Is Real Estate Investing Profitable? | I've Paid For This Twice Already... http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-4521 Is Real Estate Investing Profitable? | I've Paid For This Twice Already... Wed, 19 Mar 2008 09:03:38 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-4521 [...] Return on investment - not return on equity [...] [...] Return on investment – not return on equity [...]

]]> By: Weekend Roundup and Link Love - Going Camping Edition | The Wisdom Journal http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-4438 Weekend Roundup and Link Love - Going Camping Edition | The Wisdom Journal Sat, 15 Mar 2008 06:06:07 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-4438 [...] investment is pretty good! But for appreciating assets (like real estate), you might consider a different approach to ROI. Hope everyone enjoys these links and has a great weekend. See you on Monday Morning [...] [...] investment is pretty good! But for appreciating assets (like real estate), you might consider a different approach to ROI. Hope everyone enjoys these links and has a great weekend. See you on Monday Morning [...]

]]> By: Ron@TheWisdomJournal http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-4434 Ron@TheWisdomJournal Fri, 14 Mar 2008 15:59:59 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-4434 Preach on my brother! Would you mind explaining this to our board of directors, the CEO and the VP of Operations where I work? I can't seem to get this through their heads. Preach on my brother!
Would you mind explaining this to our board of directors, the CEO and the VP of Operations where I work?

I can’t seem to get this through their heads.

]]> By: FinancialJungle http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-4427 FinancialJungle Fri, 14 Mar 2008 06:37:48 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-4427 Great explanation, Mr. Cheap. Mental accounting is probably my #1 pet peeve in personal finance. Often, people who fall into this trap don't appreciate your help in getting out of it. Great explanation, Mr. Cheap. Mental accounting is probably my #1 pet peeve in personal finance. Often, people who fall into this trap don’t appreciate your help in getting out of it.

]]> By: Mr. Cheap http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-4426 Mr. Cheap Fri, 14 Mar 2008 06:13:15 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-4426 Elliott: That becomes the issue in the second example I gave. For comparing the two condos, just assume they're both owned outright to keep it simple. Leverage can have some funny implications on your calculations (as I tried to show in the second example). Elliott: That becomes the issue in the second example I gave. For comparing the two condos, just assume they’re both owned outright to keep it simple.

Leverage can have some funny implications on your calculations (as I tried to show in the second example).

]]> By: Elliott Russell http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/comment-page-1/#comment-4418 Elliott Russell Fri, 14 Mar 2008 05:46:33 +0000 http://www.four-pillars.ca/2008/03/13/the-fallacy-of-return-on-investment/#comment-4418 Perhaps im thinking a little too outside the box. But would it not make sense to consider the mortgage amounts as well? In this example (and i know you wanted to make it simple) there would be totally different mortgages that would represent the buy price. Your ROI should be measured against that - shouldn't it? Heh i could totally be wrong btw, this is my first look at ROI. Perhaps im thinking a little too outside the box. But would it not make sense to consider the mortgage amounts as well?

In this example (and i know you wanted to make it simple) there would be totally different mortgages that would represent the buy price. Your ROI should be measured against that – shouldn’t it?

Heh i could totally be wrong btw, this is my first look at ROI.

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