What is investment to you?

There are actually a lot of things people invest in. People are looking for something valuable to put their money at, and usually with returns. As Warren Buffett puts it:

The most important investment you can make is in yourself.

education boon investment club

So education becomes one of them. Not just talking about money here, where you put into formal education, but also the amount of time you invest in yourself, gaining knowledge. Apart from that, here’s what people invest in:

Here are the common ones:
– stocks
– currency
– bonds
– mutual funds
– fixed term deposit
– commodities
– real estates

The not so common ones:
– stamps
– art painting
– old currency notes/coins
– wine
– toys
– antique

Investors see value in things they put their money in. If you are not sure, follow this quote, and you should be safe. Thing is, people who have been in the market for years knows(or should know!) the value of the things they trade. So finding something valuable, and something that you know there is a market value, is important. Say for example, someone have always been interested with toys, and have been collecting them, would know the value of it and will not easily let go. They value it, appreciate it, and its something they wouldn’t want to let go. It is something valuable. Some people treat this as an investment, because they know how much it may worth if they continue to keep them.

Anything that is deemed valuable grows. It may not necessarily be at the price that you wish it is, but if you have been in the trade, you know the time to cash in. This principle applies to things that allows you to hold on to, be in possession, and to let go when you think the price is right. This sort of trading in value then slowly evolves and becomes a system, where people trades them internationally, and 24 hours a day.

Now, because everyone see value in things differently, for someone profiting, there needs to be someone putting the risk to accept the new value of an item. It’s a risk because no one knows what is going to happen in the future. This risk that the new owners took because they think that the value of the item will continue to grow.

However, investments have also evolved in some ways where it becomes dangerous. For example, some may take up loans, borrow money from family or friends, so that they can follow the ‘tips’ that was shared among what they call the insider news. Another example may be trading of stocks which you do not pay money for them, usually known as contra. The way some investors invest with this system becomes like a bet.

So according to investors, they recommend long term investment. Statistically and historically proven, of course it is not wrong. Over the years market will stable, people will start to look for valuable asset to keep, and people will let cash in when they think the price is right. This is the typical cycle of the market.

So, what is an investment to you?
Do you invest in yourself time, money, for individual growth?
Do you follow a system or plan of any sort?
Do you follow any prestigious investors?

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s