Investment is the act by which money or capital brings profitable returns, as interest, income, or appreciation in value. It is related to saving. Investment is involved in many areas of the economy, it also involves the choice by which an individual or an organization made a concrete decision, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time.
Investment that has not been thoroughly analyzed can be highly risky with respect to the investor because the possibility of losing money is not within the owner's control. It depends on the investment owner's mind whether the purpose is for lending the resource to someone else for economic purpose or not.
Investment is useless without a good investor! So, what are the qualities of a good investor if the reason for it, could not be over emphasize. A good investor must:
- Think
- See the future from his or her mind
- Have positive attitude
- Pay himself or herself first
- Focused
- Patient
Meanwhile, it's important to know why it is necessary to invest, even at the present economic meltdown. It is important to invest for the following reasons:
- Your money will work for you in you absences
- Your active contribution is not necessary
- Others will be working for you
- Your investment will represent you at any company of your choice
- It secures the future
