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This is financial adviser, Patrick Munro, talking about what is ROI or Return on Investment.
As an investor your whole purpose is to take money that you have, and invest it in a venture
that is going to return you more money than you initially put forward. This is called
ROI or Return on Investment. There is risk involved. You have to make sure that you analyze
the investment inside and out, and make sure that you have an appetite for the risk you
about to take. But, usually the higher the risk, the higher the rate of return that you
are going to receive. So, with that in mind, it is important to be conscious of the numbers
that are in play. If you have lending partners in the project, you make sure that there are
sufficient fall backs and credit lines to make sure the venture goes forward. This is
Patrick Munro talking about the benefits and the understanding of ROI or Return on Investments.