investment

1. Money committed or property acquired for future income.

2. Trade off between risk and reward while aiming for incremental gain and preservation of the invested amount (principal). In contrast, speculation aims at 'high gain or heavy loss,' and gambling at 'out of proportion gain or total loss.' Two main classes of investment are (1) Fixed income investment such as bonds, fixed deposits, preference shares, and (2) Variable income investment such as business ownership (equities), property ownership. In economics, investment means creation of capital or goods capable of producing other goods or services. Expenditure on education and health is recognized as an investment in human capital, and research and development in intellectual capital. Return on investment (ROI) is a key measure of a firm's performance.

If you own your own business and also have a stock portfolio, think about the two holistically. Lessons learned in each will help with the other; Warren Buffett said that he's a better businessman because he's an investor and a better investor because he's a businessman. Consider capital allocation, investment opportunities, diversification, tax consequences, and similar considerations of each in relation to the other.

• Does your product address a viable market?
• What are your financial projections?
• Get Ramen Profitable
• Real Returns in the Textile Business
• Investing in Commercial Real Estate