long-term-returns

Vocabulary Word

Definition

'Long-term-returns' are the gains or profits you get over a long period of time from something you've put money or effort into, like stocks, real estate, or a business.

Examples in Different Contexts

In portfolio management, 'long-term returns' guide the selection and balance of investments. A portfolio manager might say, 'Our strategy focuses on assets that offer reliable long-term returns, diversifying risk and enhancing portfolio growth.'

Practice Scenarios

Tech

Scenario:

We are investing heavily into AI and machine learning. What could be the financial implications of this venture?

Response:

Investments in AI are often high-risk but if successful, they can generate exponential long-term-returns.

Business

Scenario:

Our new strategy focuses on increasing customer loyalty. What effect could this potentially have on our profitability?

Response:

A focus on customer loyalty is a smart move. It should lead to significant long-term-returns as loyal customers often translate to recurring revenue.