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Every asset that produces an Income or has a possibility of producing income in the future is an investment. Everything else is speculation. Buying a commercia
by thtthings 7y ago
Every asset that produces an Income or has a possibility of producing income in the future is an investment. Everything else is speculation.
Buying a commercial property and renting it out is an investment. Buying a house in the hope of selling it for more in the future is not investment.
Same goes for Gold, Bitcoin, momentum trading in stocks in not investment. Buying a stock that does not pay dividend but is a real business that produces something is an investment.
- cookingrobot 7y agoBy that definition startup investors are speculators not “investors”. That seems like an overly narrow definition of the word, compared to how it’s normally used.
- marcosdumay 7y agoWhat startups are those that can never produce income? And why are people working on them?
- thtthings 7y agoHow do you know they will never produce income? Can you see the future? If you can, please tell me.
- DougN7 7y agoI like your definitions but it seems [buying] stock that pays no dividend (despite the business behind it) is still speculation. At best you can hope it will pay a dividend some day, which is speculation.
- thtthings 7y agoI think you are confusing risk with speculation. Every investment has risks associated with it. Even if a stock pays dividend does not mean it will keep paying it for perpetuity. Nothing is guaranteed.