Lately, one word we hear a lot is "investment." So, what exactly is an investment? I'd like to answer the question of whether it's a concept that's too distant for you, the reader.
In simple terms, an investment is the act of spending your money in a way that, after a certain period, it will grow and not lose its value. There are many examples of investments. As we know, there are stocks, bonds, and real estate, but we'll explain those in more detail later.
Let's start by explaining what an investment is with the most relatable example in our lives: investing in real estate.
Now, imagine this. Suppose you have the money to buy a property for commercial use in the city center, around the 40 Myangat area. You decide to buy the property, and after some time passes (it could be 1, 5, or 10 years), the price of real estate in that area increases. When the value has gone up, you can sell it and profit from the difference.
Example 2: Let's explain another form of investment using the example of snuff bottles and jewelry, which have been increasing in value in our country. You can buy an 18th-century coral snuff bottle from a vintage jewelry store and sell it later when its value increases. This might seem like a simple transaction, but this principle also applies to profiting from the stock, gold, and crude oil markets.
From these two examples, we can see that investments can be either long-term or short-term. While short-term investments require significant effort—such as doing research, being quick, and losing sleep—long-term investments give you the opportunity to earn a stable, higher return.
Types of Long-Term Investments:
- Company stocks (with the potential for long-term growth)
- Government securities
- Corporate bonds
- Savings insurance
- Investment funds
- Bank deposits
