10-02-2013, 10:33 AM
We will just have to disagree on this issue. I would suggest however that YOC should really just market yield. The value of the capital is what it is worth today, and the yield is cash flow that value generates. Further, to calculate this thing that you are calling YOC, totally ignores any effect of inflation. That capital was worth a lot more in the past, and has to yield a lot more just to stay even with its original yield. Like I say, for me just a feel good metric. Not saying that it is wrong to look at it, but focusing on the metric too much, could cause an investor to ignore better opportunities that exist in the present. Also, am not saying that problem belongs to you or anyone else in particular. These forums exist in large measure to share different opinions and different strategies. I am sure that your strategies are working well for you.
Alex