Did you realize that investment is all around you? If you’ve got been brooding about investing but have did not raise enough seed capital to urge into land or the stock exchange, you’ll be delayed for no reason in the least. this text explores some ways to form money in your investment business today…right now.
Let’s make it clear, the definition of an investment is that you spend money on something and get it back after a period of time plus a return. That is what defines the investment. Nothing more. So when thinking of shares or houses, we are kind of blinded by the legitimacy of these investment vehicles and fail to see that anything can be an investment.
The speed of returns is an incredibly important concept. Most investors measure their compounding progress over the annual time frame. If you focus your investment activities on short-cycle investments like a month or a week, you can do much better annually.
Risk is another very important consideration, if you hand over your money and receive nothing in return of equal or better intrinsic value, you have no control and therefore you have risk. For example in the stock market when you hand over shares, you get paper receipts. These are not worth money in themselves and you are at the mercy of an unpredictable fluctuating share price. The point is you have no control and therefore have an overlay of risk.
Compare that to for example buying a second-hand vehicle that you know is mis-priced and worth 40% more than you paid for it. In this case, you spent your money, but you received something tangible in return and it is under your control and therefore has less risk. Add to that the strong possibility of turning it over in a week or two and you have quite a strong investment.