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Investing?
Not a big deal, is it?
All you need to do is find a great deal, invest some money and make really good returns.
That's what I used to think until I realized MMM would fit that definition.
and MMM is clearly not what investing is. It was simply a ponzi scheme where you rob peter to pay paul and no value is created in the process
Investing, however, is making a decision to add value to an entity with a need. The entity, as a result of the investment, increases in value as a result of the value added and provides good returns for what was invested.
In that way, there are various ways to make an investment.
You nay decide to take up an ownership interest. That would be an investment in stock publicly (on the stock exchange) or privately (that would be private equity)
Alternative investments also provide ownership. An alternative investment is an investment that's not in stock, bonds or cash. Some good examples of alternative investments include real estate, commodities, precious metals, art or your own business.
Another way to invest is to take up a financial interest. This type of investment is a debt owed to you. You are not interested in ownership, however you want to provide assistance, so you get a stake and earn returns.
Examples of debt instruments include certificate of deposits (also known as fixed deposit), bonds and treasury bills.
These categories are broad ways to define assets.
The next stage is deciding what exactly to invest into. At this stage, it's important to
start with your why