Value Added

  

Categories: Company Valuation

Ford doesn't actually make all of the parts that go in its cars. In many cases, the parts are made by vendors. Ford buys them at scale in bulk at good prices for Ford, and then adds value simply assembling and testing them to be sure that, when fitted, they actually work.

Their value add is the final "packaging" of the car as much as it is building any one piece. The whole notion of value added is a core component of profit margins in a busienss. That is, how much value add does an operating system have for a computer? Answer: lots. If you don't have one that works, it's likely your entire computer doesn't work. Usually, the more value added, the more power that the builder/supplier/maker has, and thus better margins when they go to sell the products into their markets.

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Finance: What is a High Alpha Investor?5 Views

00:00

Finance a la shmoop what is a high alpha investor? alpha dogs you know um fear em, [Arrow points to dogs]

00:10

love em feed em alpha is good okay okay more specifically it's an

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investing term synonymous with smart if you have lots of alpha then you are

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smarter than the market so a high alpha investor is someone who beats the market

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while taking low risk ie not a lot of leverage not super volatile

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stocks per se or crazy categories like crypto currencies and they didn't just

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go by 20 bucks of California lottery tickets and then win alpha is well

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kind of a newish term in Modern Portfolio theory which is a thing [Modern Portfolio Theory book appears]

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apparently that signifies that this fund manager or mutual fund is pretty awesome

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and we can quantify that awesomeness with a number which we call alpha well

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what does this number mean? well a 2 indicates that the fund or investment

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performed at 2 percent better than the benchmark index and minus 7 is a 7 percent

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in the wrong direction and stuff like that and as we all know an alpha dog [Dog chewing a bone]

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will eat numbers like that for breakfast so high alpha good low alpha bad

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Finance: What is Alpha?
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What is Alpha? Alpha is an investing term that describes the success of an investment. It looks at the investment’s ability to beat beta (or mark...

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