Latest news with #compounding
Yahoo
6 days ago
- Business
- Yahoo
PGF Capital Berhad (KLSE:PGF) Is Doing The Right Things To Multiply Its Share Price
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So on that note, PGF Capital Berhad (KLSE:PGF) looks quite promising in regards to its trends of return on capital. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Understanding Return On Capital Employed (ROCE) Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for PGF Capital Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = RM51m ÷ (RM422m - RM41m) (Based on the trailing twelve months to May 2025). So, PGF Capital Berhad has an ROCE of 13%. In absolute terms, that's a satisfactory return, but compared to the Building industry average of 7.4% it's much better. See our latest analysis for PGF Capital Berhad In the above chart we have measured PGF Capital Berhad's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for PGF Capital Berhad . What Does the ROCE Trend For PGF Capital Berhad Tell Us? PGF Capital Berhad is displaying some positive trends. Over the last five years, returns on capital employed have risen substantially to 13%. The amount of capital employed has increased too, by 77%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. Our Take On PGF Capital Berhad's ROCE A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what PGF Capital Berhad has. And a remarkable 162% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. PGF Capital Berhad does come with some risks though, we found 2 warning signs in our investment analysis, and 1 of those is concerning... While PGF Capital Berhad may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
02-08-2025
- Business
- Yahoo
The secret sauce of ISA millionaires: buy high-yielding stocks
I have always been a firmer believer that the easiest and safest way to become rich in the stock market is to buy established blue-chip, high-yielding stocks, then just sit back and let the power of compounding perform its magic. Unfortunately, my view tends to be in the minority. For as long as I can remember, the simple fact is that most individuals park the majority of their savings in either Cash ISAs or in low-interest current accounts. Indeed, for most of my adult life that is exactly what I did, and boy do I now regret that stance. Debunking myths There are a lot of myths out there regarding investing. Don't I need to be clever to invest? Don't I need a lot of money to invest? Isn't the stock market just a casino? These are common questions many have asked me over the years. I always answer with the same statement: over the long-term, the stock market consistently delivers superior returns to cash. Research shows that ISA millionaires predominantly invest in either individual stocks or investment trusts. Personally, I prefer picking my own stocks. I see many advantages. Firstly, there are no fund management charges. Secondly, for stocks that provide one, I receive a dividend, and thirdly, I have complete visibility where my money is invested. My philosophy is simple: buy and hold. Once I have done my research and hit the buy button, the only reason I will sell out is because something fundamentally alters with the business. For example, maybe a once-successful business model has lost its relevance. With high-quality businesses, with strong moats, this rarely happens. Dividend champions These are my top-paying dividend stocks in my Stocks and Shares ISA portfolio, each of which I have owned for more than five years. Over that time frame, some have seen their stock price move up, like HSBC, others not so, like aberdeen (LSE: ABDN). Stock Dividend yield Legal & General 8.4% aberdeen 7.1% BP 6% HSBC 5.6% Aviva 5.6% Conviction When investing in individual stocks, the most important attribute any investor must possess is conviction. That has certainly been required with aberdeen, whose share price has fallen more than a fifth since I first bought it. But during that time my original investment thesis hasn't changed, which is why I have pound-cost averaged into the stock. In a crowded wealth and investments industry, I maintain that aberdeen has one distinct advantage over its competitors: its ability to cater for a diverse set of clients from sovereign wealth funds, through to financial advisers and individual investors. The business has struggled over the last few years particularly with institutional investors and high-net worth individuals because its funds have consistently underperformed benchmarks, such as the S&P 500. But in 2021, amid a surge in popularity of web-based trading, it bought out interactive investor. That proved to be an outstanding strategic move. In the last few years, assets under management administration have soared. It now stands at £85bn, second only to Hargreaves Lansdown. Interactive investor today accounts for nearly half of all aberdeen's profits. As the company continues its growth journey, I maintain that it will be able to support market-beating dividends well into the future. The post The secret sauce of ISA millionaires: buy high-yielding stocks appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Andrew Mackie owns shares in Legal & General, aberdeen, BP, HSBC and Aviva. The Motley Fool UK has recommended HSBC Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
01-08-2025
- Business
- Yahoo
More than half of Americans did not receive a strong financial education: 7 ways to teach your kids about investing today to set them up for future success
Key takeaways Kids who learn about investing early in their lives reap multiple benefits, including establishing healthy financial habits that they will use into adulthood. Aside from the behavioral benefits that kids receive from having a strong financial education, their money also has more time to compound the earlier they start, potentially setting them up with a safety net as they enter the adult world — or even an early retirement. There are several fun, engaging ways to teach your children about finance, from the classic envelope savings method to stock market games and more. The habits we learn as children often stick with us through adulthood, and so it goes with financial habits, too, according to a recent Bankrate survey. Bankrate's 2025 Financial Habits Survey revealed that Americans who had a strong financial education as children were more likely to use those habits as adults. Unfortunately, the survey also revealed that more than half of Americans (54 percent) did not receive a strong financial education as children. 'There isn't much more important than teaching children about finances,' says Steve Azoury, ChFC, owner of Azoury Financial in Troy, Michigan. 'When it comes to learning about finances, the schools aren't teaching it. It's left to loved ones to teach children valuable lessons on personal finances.' To set children up for financial success, it can be valuable to teach them about money, including budgeting, credit cards, bank accounts and even more advanced subjects such as investing. Here are seven ways you can teach children about finance and help them succeed. 1. Teach them to save You need money to invest, and the way for most people to get the cash is by saving it. For many individuals, that means budgeting money, but for others it's a process of always keeping money in reserve or holding back some of what you earn. This kind of lesson can start early. 'Basic budgeting is easily configured into trips to the store with young children, utilizing the envelope plan or something similar,' says Lori Gross, financial and investment advisor at Outlook Financial Center in Troy, Ohio. 'The basis here is that you put aside a specific amount the child has earned through things such as chores, good grades and positive behaviors into an envelope. When you go to the store, they can spend what they have earned, but nothing more. When it's gone, it's gone.' Maintaining this kind of discipline — not overspending — is important because it teaches children to live within their means, even from a young age. They're forced to prioritize what they want instead of waiting for a parent or relative to buy it for them. The idea of 'living below your means' is vital for those who want to build up a sum of money that they can invest later. Learn more: How to build a financial plan for you and your family 2. Open a bank account for their savings Working with a financial institution is a valuable lesson that can help kids understand how money works. 'Teaching children about personal finances should begin early in life, and it can start with simple lessons,' says Azoury. 'This could be something as simple as teaching them to save a percentage of their birthday or holiday cash in a high-yield savings account and then having them watch that savings grow over time.' Setting up a custodial account for a child at a bank can be an easy step, and many banks offer no-cost accounts for children. As part of the process, it's an opportune time to teach children the value of interest: Turn to one of the best high-yield savings accounts and show them why this kind of account is more valuable. Then, check in each month on the interest that's been earned. 3. Encourage them to start a small business Building a small business can help children understand how money works, too, moving closer to investing. Of course, it's a better fit for older kids who can handle some responsibility. Azoury suggests having a child 'invest their savings into a product in which they can start a small business and make more money. This could include having them invest in the purchase of a small lawnmower, then work to build their client list and make money cutting grass.' Even at a small scale, this kind of business connects the idea of work with money and savings. It also allows a child to help make decisions about the business and think about how investing in the business is helping them to make more money. 4. Give stock as a gift Taking that first step into actually owning a stock or other investment can be managed by giving a share of stock as a gift. You can go about this in a few ways, from simply giving a stock you already own to opening a custodial account for the child and then buying some shares there. One great way to spark a child's interest is to buy shares in a company that they like or use frequently, helping them connect the (abstract) investment with the concrete business reality. It can be easy to give the gift of stock and a variety of companies allow you to do so, but you can work with traditional brokers, too. Learn more: Bankrate's list of the best online brokers for beginners 5. Help them learn about stocks through games Before you put any serious money on the line, using games could be a great way to teach your child about investing. Classic board games such as Acquire, Modern Art and even Monopoly can teach children how money and investing work in a simplified but still useful way. If you want to step up to digital experience, you can use stock market simulators and virtual games to teach how investing works more concretely. These simulators give you a bankroll and let you buy and sell stocks, tracking your progress along the way. Children can quickly make the connection that they need to pick the right investments to succeed, and the games help provide exposure to the process of buying and selling investments, making it more familiar. 6. Start an investing account With a very little bit of money and motivation, you can start a custodial investment account for your child. A child can track the cash in the account and the value of the investments, watch dividend payments come in and even make basic investing decisions with your supervision. Becoming familiar with a brokerage account can make it all feel familiar and normal — exactly what you want. The best brokerage accounts don't charge an annual fee and have no minimum account size, so it's easy to get started. Plus, if you work with one of the best brokers for fractional shares, you can buy even partial shares of stock, so you don't need enough money for a full share. That means you can literally start with just a few dollars and begin investing. 7. Research a stock or ETF with them Beyond owning stock and opening an investment account, you can teach your child how to conduct some basic research on a stock, including looking up its stock chart, reading some news about the company and even looking at some basic valuation metrics. While this kind of work is better-suited to older children, it could even be applied in simpler ways for younger ones. It could also be an opportune moment to explain exchange-traded funds (ETFs), which hold many stocks and may deliver strong returns over time, too. Plus, ETFs are a great way for beginners to invest without having to do all the heavy-duty research as they would for a stock. Top reasons to teach your kids about investing while they're children Most people don't think much about investing for their children, but there are plenty of reasons why it makes sense to get started early. Aside from getting a jump start on building wealth, there are also many benefits associated with exposure to financial concepts. Bankrate's 2025 Financial Habits Survey found that Americans who grew up with a strong financial education were more likely to have implemented healthy financial habits and to have successfully negotiated their salaries as adults. Here are some other top reasons to get your children started with investing. Develop good saving habits Habits get ingrained early, so teaching kids about saving and investing while they're still young can have major benefits for them down the road. Help them understand that money is earned through work and is needed for necessities such as food and housing. If there's something they want, consider teaching them about the importance of saving by giving them an allowance that forces them to save up for the item over time. Learn how to take risks Children can also learn lessons from the risk involved with investing. Some investments have very low risk but offer returns that are also quite low. Other options, such as stocks, come with higher risk but also have the potential for strong returns. One of the best ways to learn about these differences is by having real money on the line and seeing how your investments perform and how you react to the gains or losses. Kids might get a sense of their risk tolerance, which can help guide them throughout their investing lives. Compounding returns One of the biggest benefits of getting kids started with investing is the opportunity to earn compound returns over a very long time horizon. For example, if a child is able to save up $1,000 and invest it when they're 10 years old, it would be worth about $189,000 when they're 65 years old or nearly $790,000 when they're 80 years old, assuming 10 percent annualized returns, about the average return on the S&P 500 index over time. Those numbers should get the attention of even the most rambunctious child. The table below shows how much a child would have at age 18 or 25 if monthly contributions began at their birth, assuming 10 percent annual returns. Monthly Contribution Balance at age 18 Balance at age 25 $5 $2,882 $6,216 $10 $5,764 $12,432 $25 $14,410 $31,079 $50 $28,820 $62,158 $100 $57,640 $124,316 $250 $144,100 $310,790 Note: Assumes contributions were made at the beginning of each month. More time to recover from losses Another benefit of investing early is that kids have that much more time to recover from inevitable losses. Depending on the goal they're investing for, kids will potentially have many decades to invest, giving them plenty of time to gain back any short-term losses that may come due to market selloffs or economic difficulties. Having a long-term mindset is an important part of being a good investor and kids are uniquely positioned to understand this concept. No one's time horizon is longer than a child's. Reach financial security sooner Getting kids started with investing may also increase the chances that they reach financial security sooner than they would if they started later in life. Compound interest grows over time, so if you have a 10- or 20-year head start on most people, it's reasonable to think that you'll get to the finish line faster too. Someone who is an aggressive saver as a child and continues to be one early on in their career will likely be in a strong financial position when it comes time to retire and may even be in a spot to retire early. FAQs about investing for children How old do you have to be to invest in stocks? Typically, you need to be 18 years old to open a brokerage account, though some brokers have started offering accounts to teens. Custodial accounts can be opened on your behalf prior to age 18, but an adult will have ownership over the account until you're an adult. How can you buy stocks as a gift? Stocks can be purchased as a gift and then transferred to the recipient's account through a broker. You can also purchase stocks on behalf of a child through a UGMA Trust account. What is the best way to invest for a child? The best way to invest for a child will depend on your unique circumstances and what your goal is. A custodial Roth IRA can be a great way to kick-start their retirement savings if they qualify for an account, or a custodial trust account can help you get them started with investing until they reach adult age. Bottom line 'Teaching children financial responsibility begins at home, and the earlier, the better,' says Gross. Providing your child a financial education can begin in small ways and advance as the child grows. Give them a little responsibility so that they can see how money works and then slowly increase the scope of the lessons to more complex topics as their mastery and knowledge grow. — Bankrate's Brian Baker contributed to a previous version of this article. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
29-07-2025
- Business
- Wall Street Journal
Novo Nordisk Cuts Guidance as Copycat Versions of Wegovy Hurt Results
Novo Nordisk NOVO.B -13.11%decrease; red down pointing triangle cut its full-year guidance as U.S. sales continue to be hurt by copycat versions of its blockbuster Wegovy weight-loss drug. The Danish pharmaceutical giant said that despite U.S. regulators ordering an end to the practice known as compounding, it has continued, with multiple entities still marketing and selling unbranded versions of its drug.
Yahoo
29-07-2025
- Business
- Yahoo
Your net worth will 'go crazy' once you pass this money milestone - here's the magic number and how to hit it
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Young Americans can get a one-way ticket to the millionaire club by tapping into the power of compounding. It's simple: you invest a small sum of money each month into a low-cost index fund. When you earn dividends, you automatically reinvest those proceeds to buy more shares and your returns grow over time. But there's a catch, according to personal finance YouTuber Mark Tilbury: the magic only really happens after you've earned your first $100,000. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how 'Don't worry about earning millions,' he said. 'Instead, focus on the first $100,000 because, after that, your net worth will go crazy.' Tilbury joins a vast chorus of money mavens to drum home the significance of that first $100,000. Even the late Charlie Munger, a billionaire investor, described it as 'a b—-, but you gotta do it' because 'after that, you can ease off the gas a little bit.' But hitting that $100,000 milestone is tough for young Americans today — especially when you consider post-pandemic inflation, elevated interest rates and sky-high home prices due to a nationwide inventory shortage. Here's why the first $100,000 is so important and how you can speed up your journey to personal wealth. How do you make your first $100K? After you hit $100,000 'compound interest stops being lame,' according to Tilbury. 'Getting that chunk of money as fast as possible is the key. [...] Once you get to this point, it's almost inevitable that you'll be wealthy if you just invest in a low-cost index fund.' To get there, Tilbury suggests people follow what he calls the GROWTH method: G: Gain control of your finances. R: Root your investments. O: Optimize your tax management. W: Weed out your debts. T: Tap into additional income streams. H: Heightened self-discipline. Gain control of your finances Gaining control of your finances is crucial for achieving long-term financial stability and reaching your goals. And according to Tilbury there's only one way to gain control of your finances— budgeting. Once you've assessed your budget, there may even be ways you can shave off some unnecessary dollars and avoid unnecessary spending. Monarch Money's expense tracking system makes managing your finances easier. The platform seamlessly connects all your accounts in one place, giving you a clear view of where you're overspending. By linking your credit card accounts, you can monitor your payment progress in real-time and set specific goals to get out of credit card debt faster. For a limited time, you can get 50% off your first year with the code NEWYEAR2025. Root your investments When it comes to building your investment portfolio, Tilbury advocates for the 'rooting your investment' model, which prioritizes investing a set amount of money each month, whether that's $50 or $500. With Wealthfront's automated investing platform, the power of compound interest works for you. Their sophisticated "set it and forget it" approach means your money is professionally managed and automatically rebalanced, allowing your wealth to grow steadily over time. Start investing for the long term with globally diversified portfolios or go for a higher yield than a traditional savings account with an automated bond portfolio. Open your account today and receive a $50 bonus to jumpstart your investment journey. Whether you're saving for retirement, a home, or building generational wealth, Wealthfront's low-cost, automated investment strategy can help you achieve your financial goals. Another way to root your finances is by diversifying outside of the stock market and gold can be a solid option, especially when it comes to saving for retirement. AOne way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases. 'Optimize your tax management' Once you get your money working for you, it is time to optimize your tax management by doing things like claiming all available tax credits and deductions, maximizing your tax-advantaged retirement accounts and tax-deferred savings accounts, or even starting a business and making the most of write-offs. A qualified financial advisor can help you with all this and more. With you can find the best advisor for your needs — both in terms of what they can offer your finances, and what they'll charge to work for you. is a free service that helps you find a financial advisor who can co-create a plan to reach your financial goals. By matching you with a curated list of the best options for you from their database of thousands, you get a pre-screened financial advisor you can trust. You can then set up a free, no obligation consultation to see if they're the right fit for you. Read more: Rich, young Americans are ditching the stormy stock market — Weed out your debts' To build a solid financial foundation and move closer to achieving high net worth, eliminating debt should be a top priority. For example, the current average annual percentage rate (APR) for a new credit card is a staggering 24.92%, according to LendingTree. Carrying high-interest debt can severely hinder your ability to grow your wealth and secure your financial future. By consolidating your debt with a personal loan through Credible, you can pay down your debts faster and at a better rate. Credible is an online marketplace of vetted lenders that can provide you with debt consolidation loans to speed up your repayment and get closer to your first $100k. To get started, just provide some basic information and Credible will present you with a list of loan options to help pay down your debt more efficiently and without juggling multiple bills. 'Tap into additional income streams' The personal finance Youtuber suggests diversifying and growing your income by starting a side hustle. If you'd like to opt for a low-effort side hustle with the potential for high returns, real estate might be your answer. Tilbury recently posted on X about how he used the earnings from one of his latest business deals. He said, "From that one deal, I earned enough to buy a rental unit, which has since generated a lot of passive income for me." If you want to generate investment income from the real estate market, there are plenty of opportunities to invest without having to find and purchase a property yourself outright. For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors. With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property. With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. If you're not an accredited investor, crowdfunding platforms like Arrived allow you to enter the real estate market for as little as $100. Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential. Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part. Heightened self-discipline With heightened self-discipline, reaching this financial milestone can set your networth on an upward trajectory. Tilbury stresses that you need to 'find your inner discipline' to put all these steps into practice. 'Discipline is the currency of success,' Tilbury said. 'The more you mint, the wealthier your future will become.' The first step is saving – and saving your money requires discipline. Certificates of deposits (CDs) can be an effective vehicle to exercise that discipline while effectively growing your savings. A certificate of deposit (CD) is a savings tool offered by banks and credit unions, designed to grow your wealth with minimal effort. By locking in a fixed interest rate for a set period, you earn more than a standard savings account. With terms ranging from a few months to several years, CDs reward your financial discipline, though they do require you to keep your funds untouched until maturity to avoid early withdrawal penalties. If you're looking to start saving aggressively, it's essential to have at least one high-interest savings account to help your stockpile grow. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Car insurance in America now costs a stunning $2,329/year on average — but here's how 2 minutes can save you more than $600 in 2025 Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
