- I was thinking about what you said about the negative image of investment.
Maybe the expanded meaning of the word “investment” has become vague and “unfamiliar. It might be easier to think in terms of capital investment, such as “a factory buys a new machine tool,” or, more retrospectively, “you can get money later but you need money now,” such as “you can make a lot of money trading by sailing a ship, but you have to load food before sailing in order to sail. It might be easier to think of offering money for a situation like “I can get money later, but I need money now.
Story branch 1
- This “give me the money now so I can get it later” structure is the same MO used by scammers, so it’s no wonder they feel the same way.
- The key question is, “How much future profit can we expect?”
- And as for investments with no barriers to entry (anyone can participate), those with high expectations are taken first, so the information that reaches those at the end of the information chain is naturally of low expectation.
- Related Shoeshine boy.
Story branch 2
- The mechanism for this “exchange of present money for future profits” is the stock
- Separate ownership of a business that generates money.
- You will be supporting that business to create something of value to society.
- On the other hand, “I’ll buy it because the price is about to go up” doesn’t support the betterment of society.
- In my narrow sense of “investment”.
- Includes: stocks, bonds, rental income portion of real estate investments, REITs
- Not included: commodity futures, foreign exchange, FX, land value portion of real estate investments
- and parted.
- Are stocks also divided into a dividend portion and a value portion?
- No, it isn’t.
- If a company does not pay dividends in the short term and uses the money for capital expenditures, the company’s value will increase in the long term and its stock price will rise.
- Company can grow, real estate can’t.
- In that sense, the business of renovating and increasing the value of real estate is very similar to the stock market.
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