4 ms·
You buy into an investment because you expect a capital gain. You don't buy shoes in expectation of a capital gain.
by blattimwind 9y ago
You buy into an investment because you expect a capital gain. You don't buy shoes in expectation of a capital gain.
- neals 9y agoIt's never that easy though: I can invest in a pair of shoes to get a job that makes me more money. It's a slippery slope and with the decentralization revolution that is happening, this will only keep on getting more blurry.
- shaki-dora 9y agoYou’re just redefining “investment” to be meaningless. There’s no slippery slope, unless your new shoes have leather soles.
- MadSudaca 9y agoI agree with the other commenter. The same could be said about anything you buy for yourself. I buy food so that I can keep my body functioning, in order to be able to produce value and make money. So buying potatoes is a kind of investment.
- ada1981 9y agoAssets vs. Inputs.
- ada1981 9y agoIf you buy potatoes to eat, or even really to turn into french fries and sell, its an input. If you buy them to HODL because you think potato options are going to bring you a return, it's an investment. If you've invested in a global, decentralized game of hot potato, well, that's crypto ;)
- gus_massa 9y agoIf you are going to HODL, buy soy or corn or other cereal, potatoes rot too easy. [This is not financial advice!] Somewhat related: A few years ago, in Argentina it was usual that the farmers keep most of their production of soy in big long bags in the field, because if they sold them they only could get pesos and with a 30% annual inflation it was better to keep the grains and sell them when they need to buy something. (In Spanish) https://es.wikipedia.org/wiki/Silo_bolsa https://es.wikipedia.org/wiki/Silo_bolsa autotranslation https://translate.google.com/translate?sl=es&tl=en&js=y&prev=_t&u=https%3A%2F%2Fes.wikipedia.org%2Fwiki%2FSilo_bolsa&edit-text=&act=url https://translate.google.com/translate?sl=es&tl=en&js=y&prev...
- drusepth 9y agoThanks a ton for the financial advice. Gonna cash out my 401k to buy massive quantities of cereal for hodling.
- hobofan 9y agoSure you do. You buy higher-end business shoes and suits to be eligible for management positions that pay better. Might not be the case in SV and the startup world, but it certainly is at most other companies.
- gnode 9y agoThat's not what capital gain means; you're not expecting to sell the shoes themselves to make a profit.
- saosebastiao 9y agoCorrect, it's not a capital gain. It's a dividend.
- annabellish 9y agoand you invest in food because if you don't eat, then you'll die and make no more money! That definition of "investment" includes almost everything anyone can possibly do.
- briandear 9y agoNo it doesn’t. One invests because the asset they are purchasing will either appreciate or generate cash flow. “Food” doesn’t generally appreciate or generate cash flow. (Outside of obvious restaurant contexts.) You can call food an “investment” but you could also call a dog a cat — that doesn’t make it so.
- Trundle 9y ago"That"
- saosebastiao 9y agoOf course you don't expect a capital gain on shoes (for most people...there's always an exception [0]). But you can still expect returns on shoes. Construction boots for construction workers, for example, are as much an investment as construction tools. An investment is more than just something that accrues value over time. [0] http://www.businessinsider.com/18-year-old-entrepreneur-makes-fortune-selling-rare-sneakers-to-celebrities-2018-1 http://www.businessinsider.com/18-year-old-entrepreneur-make...