Recently, I’ve been looking at investment-related discussions and found that many people actually don’t quite understand how to measure whether an investment is worthwhile. It’s actually very simple—just look at the return on investment, called ROI in English. This metric can directly tell you whether the cost of your investment is worth the returns it generates.

I noticed that in 2022, Apple and Amazon reported investment returns of 26% and 12%, respectively, which shows that large tech companies still have their own approach to capital allocation. A report from PwC also mentioned that investments in the tech industry, especially in cloud computing and AI, can achieve average returns of 15-20%, which is quite attractive.

Why is this metric so important? Because it directly influences investors’ decisions. Venture capitalists, before pouring money into startups, will definitely calculate ROI. Investors in the stock market also choose targets that offer the best returns relative to their costs. Companies internally also allocate resources to the most profitable projects.

In recent years, with the development of big data and machine learning, ROI calculations have become more precise. Predictive analytics help investors see the potential returns of new fields or products in advance, making their decisions more confident. Tech companies also often use ROI to explain to shareholders the necessity of IT investments and software development.

Looking ahead, as market competition becomes fiercer and investment opportunities more complex, the importance of ROI will only grow. There’s also a new trend called ESG investing, which includes environmental and social impacts in the calculations, not just financial figures. The integration of AI and blockchain technology will also make ROI calculations more transparent and less prone to human error.

Ultimately, the concept of return rate has existed since the early 20th century. After more than a hundred years of development, it has become a standard tool for evaluating investment efficiency. Whether in traditional industries or crypto assets, ROI remains a core indicator. When I look at my crypto portfolio, I also focus on ROI performance. This tool will not become outdated—in fact, it will become even more important.