GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Citigroup profits up 74%, Wells Fargo up 21%

raymor · 10-17-2011, 04:39 PM

We just switched back to a credit union. I asked to get their schedule of fees. Their response "we have no fees".

I like that.

If a bank eaked out $100 profit last year and this year they squeezed by worth a total profit of $174, that would be a 74% increase. It's a worthless measure. What matters is return on equity. If I as a stockholder invest $1000 and I make $400 profit on that $1000 in one year, that's a really high profit. If for every $1000 in equity profit is $10, that sucks and after inflation the business has lost money. Look at the return on equity or PE ratio to see which companies are making money. Your can find it easily by searching their stock symbol, as it's a hugely important number.

Single year returns also aren't terribly important. In many industries, such as oil, cars, and agriculture, any single year is either boom or bust. A farmer will make good money in good weather years while losing money in drought years. Look at a ten year average to see useful numbers.

10-17-2011, 04:39 PM
raymor Confirmed User Join Date: Oct 2002 Posts: 3,745	We just switched back to a credit union. I asked to get their schedule of fees. Their response "we have no fees". I like that. If a bank eaked out $100 profit last year and this year they squeezed by worth a total profit of $174, that would be a 74% increase. It's a worthless measure. What matters is return on equity. If I as a stockholder invest $1000 and I make $400 profit on that $1000 in one year, that's a really high profit. If for every $1000 in equity profit is $10, that sucks and after inflation the business has lost money. Look at the return on equity or PE ratio to see which companies are making money. Your can find it easily by searching their stock symbol, as it's a hugely important number. Single year returns also aren't terribly important. In many industries, such as oil, cars, and agriculture, any single year is either boom or bust. A farmer will make good money in good weather years while losing money in drought years. Look at a ten year average to see useful numbers. __________________ For historical display only. This information is not current: support@bettercgi.com ICQ 7208627 Strongbox - The next generation in site security Throttlebox - The next generation in bandwidth control Clonebox - Backup and disaster recovery on steroids