Investment can be simply defined as the act of deploying resources for the purpose of increasing their worth in the future and, simply put, investment is a way of converting today’s consumption demand in order to gain better returns in the future. Investing allows the deployed assets to generate income or growth in value. In doing so the process satisfies the investor’s objectives and leads to creation of a wealth base in the form of equities, fixed plays or valuable investments that grow in value. Any generated returns from investments can then be reinvested to create more income and thus expand its base even further. In this light, it can be said that there exists a direct relationship between the amount of resources that are available for an investor and the extent of wealth that can be

Question

Can anyone elaborate on the concept of investment and how does it function in relation to building up wealth?

Answer 1

Investment is the moving of the use of the resources that are productive and will probably be consumed in the immediate future to the investment which is more beneficial in the long term where it creates income or profit in return. Investment can be viewed as the more productive use of a given set of assets. Invested capital, and in this case assets, combined with intelligent decision-making promote the growth of wealth over time. As evidenced by many, the richest men have then become rich through the wealth investment due to its appreciably enhanced the growth of wealth.

Comments

Dave is teaching future generations what they should’ve taught us. Learning about investing and economics early is a HUGE benefit. And I’m not even 30 yet so I still benefit from these contents as well. Thanks professor!

---

Thank you, Professor Dave!❤

---

am I expected to learn all this before I start my investment journey?

---

Very helpful content for getting started. For those looking to learn more A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a great investing book for teens.

---

This is really informative