Investment View

AAA

DEFINITION of 'Investment View'

Analyzing an underlying decision or decision-making process in the context of resources spent and potential gain. The investment view will examine the project or business, taking into account the factors which make an investment attractive. Some investors may look for "value," which they determine by looking at a company's price-earnings (PE) ratio compared to the industry norm, while others may seek a solid, dividend-yielding stock like General Electric. Of course, as one ages or experiences other material changes in their life, their investment view often changes.

INVESTOPEDIA EXPLAINS 'Investment View'

Business decisions could have many different reasons for going ahead, this could include building a brand or reducing potential entrants to the industry, but when an investment view is taken, there will be a more structured look at the cost-return relationship given the time. Having a solid, well-defined investment view can help investors maximize profits by focusing their efforts on investments that they know and understand. At its core, a strong investment view will encompass general things, such as profit potential and risk tolerance, as well as more specific items like preferred industries and/or economic sectors.

RELATED TERMS
  1. Investment Philosophy

    A set of guiding principles that inform and shape an individual's ...
  2. William J. O'Neil

    A noted investor, stockbroker and author. William published the ...
  3. Investment Ideas

    Specific views, plans or ideas on ways to invest money effectively. ...
  4. Investment Club

    A group of people who pool their money to make investments. Usually, ...
  5. Timberland Investment

    An investment instrument used primarily by large institutional ...
  6. Value Investing

    The strategy of selecting stocks that trade for less than their ...
RELATED FAQS
  1. How does the risk of investing in the aerospace sector compare to the broader market?

    Investing in the aerospace sector is riskier than investing in the broader market. The most accurate measure of sector volatility, ... Read Full Answer >>
  2. How does a pension income drawdown work?

    While there are similar drawdown plans in the United States, a pension income drawdown plan most commonly refers to a specific ... Read Full Answer >>
  3. What is the most important section in an investment company's prospectus?

    It is important for investors to examine all information contained within an investment company’s prospectus. However, the ... Read Full Answer >>
  4. How does debt affect a company's beta?

    The average debt/equity ratio for the Internet sector is small, at 0.32 for the first quarter of 2015, and an average of ... Read Full Answer >>
  5. What option strategies can I use to earn additional income when investing in the ...

    A risk-averse investor should build his retirement portfolio by putting together a well-diversified portfolio and then regularly ... Read Full Answer >>
  6. Why are simple-interest loans preferred by payday loan companies and pawn shops?

    Investors use corporate bonds for a variety of reasons. These bonds can offer dependable income, safety, diversity, marketability ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    Understanding Investor Behavior

    Discover how some strange human tendencies can play out in the market, posing the question: are we really rational?
  2. Active Trading Fundamentals

    An Introduction To Behavioral Finance

    Curious about how emotions and biases affect the market? Find some useful insight here.
  3. Markets

    Hedging With Puts And Calls

    This trading strategy can reduce your risk - but only if you use it effectively.
  4. Retirement

    Your Personality Is Your Investment Strategy

    It's hard to keep your emotions in check while you play the stock market, but it will help you make better decisions in the long run.
  5. Active Trading

    10 Books Every Investor Should Read

    Want advice from some of the most successful investors of all time? Check out our reading list.
  6. Trading Strategies

    10 Tips For The Successful Long-Term Investor

    These guiding principles will help you avoid common folly during the decision-making process.
  7. Investing

    The Case For Stocks Today

    Last week, U.S. equities advanced with the S&P 500 Index notching new records. Investors are now getting nervous with rate and currency volatility spiking.
  8. Investing

    Financial Gifts For Grads: Kindergarten To College

    If you really want to help your grad preparing for the future, consider a present that supports their long-term goals—an early start to financial planning.
  9. Mutual Funds & ETFs

    Why You May Want To Be (And Stay) In Bonds

    Bonds are complicated, and it’s easy to feel intimidated or confused. Fortunately, you don’t need to be a numbers geek to be an informed investor.
  10. Investing

    How To Implement A Smart Beta Investing Strategy

    Smart beta investing is the notion of re-writing investment rules to improve investment outcomes by targeting exposures to intuitive ideas or factors.

You May Also Like

Hot Definitions
  1. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  2. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  5. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  6. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
Trading Center