Thursday, 1 November 2012

How do I define an INVESTOR?


If I give you a couple of seconds to picture an INVESTOR, what would it be?

Rich guy in a nice suit?

Stocks?

Businessman?

Short -selling?

Capitalist?


Those few words that I mention above will probably come to your mind every time you think about what an investor is. Most probably, the investor is the person who puts his money somewhere, hoping that it will grow. Right?

Our dear friend, wikipedia, defines an investor as “someone who allocates capital with the expectation of a financial return. “ In short, an investor is someone who expects an additional value for the capital he or she allocated.



That be said, then I guess an investor is anyone who buys or sells anything. When I say anything, it can be food, shoes, gasoline, water, car, stocks, houses, condominiums, etc. How come? It all revolves around the concept of gaining something in return. For instance, if you buy a pair of shoes, in exchange for the PHP 2,500 or so money you used to buy it, consciously or unconsciously, you are giving yourself the added value or the gain, that you do not need to walk barefoot; that you will feel good about yourself because you are wearing something nice; that you have the satisfaction of being able to attend gatherings with the appropriate shoes, etc. That feeling of satisfaction or getting your money’s worth, etc is what we call an economic gain.

Hence, an investor is someone like you.


Now, how come we don’t notice it everyday? The answer is simple. Because in as much as we gain or lose something everytime we invest or allocate our capital in the form of food, clothing, shelter, etc, most probably, we will not be able to get the capital we allocated for it. For instance, if you buy a car for PHP 1 Million, chances are, you cannot resell it greater than the PHP 1 Million. Hence, the things we invest or put our money in are things that DEPRECIATE or lose value everytime someone buys or sells it.
And that is why am creating this blog. I will share to you things that APPRECIATE or gain value everytime you buy or sell them.

Lastly, I am here to remind you that the INVESTOR is you, You no longer need to be one. You just need to be a STREET SMART one.

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