Talk:Investment

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This article was the subject of a Wiki Education Foundation-supported course assignment, between 28 January 2020 and 12 May 2020. Further details are available on the course page. Student editor(s): Keshav.mehta001.

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Split

This article should not share a redirect with investing. Investments and investing are different topics. Investments are the physical results of investing where as investing is the process to make investments.Smallman12q (talk) 02:26, 16 February 2009 (UTC)

I disagree. It should e titled Investing and Investments, wih two diffrent subsections.

I also disagree. How anyone could think investments and investing are unrelated I find extraordinary. Jonathan G. G. Lewis 06:46, 4 March 2016 (UTC) — Preceding unsigned comment added by Jonazo (talk

• contribs)  

Question

Interesting questions to have answers to:

• According to the world's statistics, what fields do people most invest in (through history)? (medicine, agriculture, education, etc.)
• "(e.g. futures or options)" - isn't future a kind of option?

The worldwide view template should be removed. CRAuser (talk) 20:22, 25 May 2017 (UTC)

How does investment affect to the foreign exchange rate of a certain country and how does it affect to the economy of a certain country?

This article is well written. If someone wants to write an article on investing in Canada or Brazil it could be it's own article. CRAuser (talk) 20:20, 25 May 2017 (UTC)

Sorry that I cannot tell who made this contribution to the talk page, but I'm not convinced these are terribly helpful points. The question regarding exchange rates and economics is interesting, if wildly broad, but hardly directly relevant.

By the way, a futures contract is not the same as an option contract, and neither includes the other as a subcategory. Again, I'm not sure why this is relevant to this article. Jonathan G. G. Lewis 06:45, 4 March 2016 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

Total Costs of Investments

The costs on investments can be administrative fees or percent fees, taxes on gain , taxes on income, estate and federal taxes, spread on returns . This way considering all of them in a certain period (n) of time will improve our analysis and with a certain average annual return on investment (ar)and risk of instrument (Rk), we try to maximize the distribution made from that investment in a (m) period with m < n . This analysis take importance when analysing long term investments alternatives for retirement and it is crucial to choose the best approach for an expected outcome . The administrative costs are usually fixed annual fees (af), annual spread on returns , and charges on investments. This way the annual fees are fixed amount of money debited from the account in a determined period usually a year . The spread on annual returns is characterized by the difference between annual gained interest (agi) and annual credited interest (aci) on the account, with (agi)>(aci) . The charge on investments are basically divided in two : charges on investment (chINV)or charges on capital(chCAP). The distinction is very important in the long period because a smaller percent of charges on capital can be much greater than bigger percent charges on investments .

And the conclusion is what, in relation to this article? Want to add this as content? Jonathan G. G. Lewis 06:48, 4 March 2016 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

July 2011 References, neutrality and lead rewrite

Such a fundamental article should really have more than two citations. Also, the lead certainly needs some kind of rewrite. At best it's an oversimplification, but I think the usage of the word "scheme" and association with gambling reflects an NPOV problem. Certainly in American usage stocks and mutual funds are widely considered to be "investments", as shown by the Wall Street Journal's "Investment" section [1] which is dominated by information about stocks and mutual funds. Considering that all of my credit cards index their APRs to the Wall Street Journal, I would at least accept this usage as common usage whether or not it reflects technical definitions of "investment" and "speculation". Publicly Visible (talk) 16:37, 13 July 2011 (UTC)

All rational shareholders are not investors

According to the definition and combined with the EMH, no rational shareholder should analyze stock data; thus, none are investors and all are speculators. Where is my logic flawed? — Preceding unsigned comment added by Sigiheri (talk • contribs) 01:54, 5 December 2011 (UTC)

Although my opinion only, it is too important to world economic outcomes to have your investment article include property investment and not mention or link to another page on the following: 1. Property investment is indirectly encouraged by Governments as the construction of homes provides jobs and economic growth. 2. Then if Governments encourage property investment, which can lead to property bubbles and then economic slowdown later and even for later generations, which or are all of the following going too far: a. The too slow action of Government to rein in sub-prime mortgage lending. USA. (Contributor to 2008 GFC) b. The holding of the lending interest rates by central banks too low for too long. GENERAL (Contributor to 2008 GFC) c. Securitisation allowed to expand money supply, usurping the role of central banks. GENERAL (Contributor to 2008 GFC) d. The above in combination with the appointment of Treasury or Central Bank staff to important Investment bank and other corporate positions. And vice versa. AUSTRALIA AND USA, OTHERS? (CONTRIBUTOR TO 2008 GFC) e. Governments too slow to rein in people moving their superannuation to self-managed funds, illegally lending the funds out of the self-managed fund to make personal property investment. SELECTED STATES OF AUSTRALIA, OTHERS? (Future problems) f. Governments too slow to remedy the double dipping, where people take lump sums from super, pay off big mortgages and then rely on the pension as their own annuity is now too low after their lump sum. They double dip by having the tax shield in the super fund (other taxpayers pay) and then taxpayers again foot the bill for their pension. AUSTRALIA, OTHERS? (Future problems). Thus there is no free market in investing in real estate such as homes. It is heavily managed, or managed too late, by Government, and given that it is not a function of market forces, the real estate investment is fraught with danger. The unwary is taking on profound risk and a crash before the depression wiped much more (60% to 80%) from the relatively innocent home owner. It was 30% in the depression.120.20.202.218 (talk) 10:47, 24 November 2012 (UTC) REFERENCES: 1. Property construction is part of fixed capital investment, is a key sector of economic growth. 2. Governments encouraging properrty investment: Example: See Australia's first home owners grants. a. Sub-prime effect is common knowledge b. Too low interest rates. The Economist Newspaper. c. Securitisation and money supply. The Economist Newspaper. d. Personal knowledge. Goldman Sachs staffers often ex-US Treasury & vice versa. e. Personal knowledge. f. Mortgage double dipping. Australian Treasury Ministers quoted in the Australian press. Meant for illustration only.

All about value investing

Sections : Debt equity and free cash flow and Basics of the profit line seem to be detail re value investing and could be subsections thereof. - To balance that there could be mention of technical analysis/charting, and momentum investing ? - Rod57 (talk) 00:00, 12 February 2016 (UTC)

Rewrite

I have substantially revised the early sections. Jonathan G. G. Lewis 06:37, 4 March 2016 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

That's not to say I like the rest of the article. I may come back to it again another time. Jonathan G. G. Lewis 06:50, 4 March 2016 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

Exchange rate risk for savings

I noticed that my point about exchange rate risk for savings was edited out, so I've just added a line devoted to it. Jonathan G. G. Lewis 01:00, 10 April 2016 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

Other editors keep removing the point about savings having currency risk. I wonder why. I just put it back in again. --Jonathan G. G. Lewis 07:40, 27 March 2019 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

Proposal for a chapter or the article on Investment or an independent article on Long term investments

Good afternoon everyone,

Long term investment is a pretty recent concept with different dimensions. There has been much discussion in the past few years as to how to define “long term investment”.

Several international organisations and national public think tanks have published on the subject (OECD, the French “Conseil d’analyse économique", the European Commission) I thought it could be interesting to write a new chapter of the “investment” article or an independent article and try to sum up the different studies elaborated so far. This could serve as a “first entry” to the concept.

Tell me what you think about my little project! Needless to say I intend to rely only on the most public and respected sources of information, for instance:

- European Commission staff working document “Long-Term Financing of the European Economy”, Accompanying the Green Paper “Long-Term Financing of the European Economy”, 2013, {COM(2013) 150 final}}

-French « Conseil d’analyse économique », Investissements et investisseurs de long terme, report, 2010

- The OECD project on institutional investors and long-term investment

- Former Italien minister Franco Bassanini and Edoardo Reviglio,Financial stability, fiscal consolidation and long-term investment after the crisis, in OECD Journal: Financial Market Trends Volume 2011 – Issue 1, May 2011

- World Economic Forum, The Future of Long-Term Financing, 2011

- Bank of International Settlements, Committee on the Global Financial System (CGFS), Institutional investors, global savings and asset allocation, February 2007, Paper n°27,

-The World Bank Development Research Group Macroeconomics and Growth Team Policy Research, Institutional Investors and Long-Term Investment, Evidence from Chile , Working Paper 6922, June 2014

-Alvaro Enrique Pedraza Morales, The short-term objectives of long-term investors, in “All about finance”, Blog hosted by the World Bank, 04/28/2015

-World Bank, Global Financial Development Report 2015/2016 : Long-Term Finance, 2015

-Eric S. Maskin, Long-term investment by japanese and american firms, Harvard University, 1995

-International Monetary Fund (IMF), Long-Term Investors and Their Asset Allocation where are they now ?, 2011

-G 20 Financial Stability Board (FSB), Report on Promoting Long term Investment in Asia, 2015

-G 20 Financial Stability Board (FSB), Update on financial regulatory factors affecting long-term investment finance, 2014

Thank you very much !

Nuitblanchisseur (talk) 17:23, 10 May 2016 (UTC)

Modification of the title of the discussion topic and adding of other sources Nuitblanchisseur (talk) 09:50, 11 May 2016 (UTC)

Adding of other sources Nuitblanchisseur (talk) 16:04, 12 May 2016 (UTC)

Dr. Berghall's comment on this article

Dr. Berghall has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

Investment in finance is defined as saving in macroeconomics, although saving may further include monetary holdings.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

We believe Dr. Berghall has expertise on the topic of this article, since he has published relevant scholarly research:

• Reference : Elina Berghall, 2009. "R&D, investment and structural change in Finland: Is low investment a problem?," Working Papers 6, Government Institute for Economic Research Finland (VATT).

ExpertIdeasBot (talk) 20:31, 1 July 2016 (UTC)

Dr. Guidolin's comment on this article

Dr. Guidolin has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

1. Albeit it does not contain any mistake, the first paragraph, from "to invest" to “overall risk”, is a bit vague and lacks references. A very good definition of investment can be found in the introduction of the following book: Luenberger, David G. "Investment science." OUP Catalogue (1997). Chapter 6 of the same book provides an explanation of the diversification concept.

2. "Investment differs from arbitrage, in which profit is generated without investing capital or bearing risk."

Also here a reference would be beneficial (see, e.g., Ingersoll, Jonathan E. Theory of financial decision making. Vol. 3. Rowman & Littlefield, 1987)

3. Speculation involves a level of risk which is greater than most investors would generally consider justified by the expected return.[2]

The source is a bit weak and the sentence is rather vague (far from being a scientific definition).

4. “Investments are often made indirectly through intermediary financial institutions. These intermediaries include pension funds, banks, brokers, and insurance companies. They may pool money received from a number of individual end investors into funds such as investment trusts, unit trusts, SICAVs etc. to make large scale investments.”

Brokers just provide execution.

5. Also the section "Value Investment" lacks references. One source may be: Damodaran, Aswath. Investment valuation: Tools and techniques for determining the value of any asset. Vol. 666. John Wiley & Sons, 2012.

6. In my opinion the sections Free cash flow and capital structure and EBITDA are beyond the scope of the article.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

We believe Dr. Guidolin has expertise on the topic of this article, since he has published relevant scholarly research:

• Reference :Guidolin, Massimo, and Giovanna Nicodano. "Small caps in international equity portfolios: the effects of variance risk." Annals of Finance 5.1 (2009): 15-48.

ExpertIdeasBot (talk) 18:49, 26 July 2016 (UTC)

According to point 4 in the feedback above, "Brokers just provide execution." This doesn't appear to be true. What about discretionary brokerage? Jonathan G. G. Lewis 02:52, 9 February 2018 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

Dr. Toivanen's comment on this article

Dr. Toivanen has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

1. original: In finance, the expected future benefit from investment is a return

rewrite: The expected future benefit from investment is called a return (to investment).

2. original: The return may consist of capital gain and/or investment income, including dividends, interest, rental income etc.

complement by continuing: The economic return to an investment is the appropriately discounted value of the future returns to the investment.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

We believe Dr. Toivanen has expertise on the topic of this article, since he has published relevant scholarly research:

• Reference : Tuomas Takalo & Tanja Tanayama & Otto Toivanen, 2005. "Selection Or Self-Rejection? Applications Into A Treatment," Industrial Organization 0510002, EconWPA.

ExpertIdeasBot (talk) 14:52, 8 August 2016 (UTC)

Lead revision

"To invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future." It would be more concise to say "To invest is to allocate money, time, or another resource in the expectation of some benefit in the future." Less characters without changing the full meaning. Gordon410 (talk) 12:12, 12 October 2016 (UTC)

I prefer either of these to the one shown currently. --Jonathan G. G. Lewis 07:42, 27 March 2019 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

The word "allocate" is more appropriate than "distribute" here to define the act of investing. To "distribute" tends to have connotations with profit distributions, including corporate tax, capex and distributions to owners, such as dividends to shareholders. --Jonathan G. G. Lewis 01:30, 28 March 2019 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

I removed this sentence from the lead:

The projected economic return is the appropriately discounted value of the future returns.

Although it is true, it digresses from the basic explanation, without helping to clarify it. --Jonathan G. G. Lewis 06:29, 4 April 2019 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

IRA

Does United have IRAs? 24.178.168.180 (talk) 14:22, 3 January 2022 (UTC)

Wikipedia isn't really the place to ask questions about your own investment options. I'm not sure which "United" you mean, but the best party to answer this type of question is the company itself. -- Beland (talk) 05:27, 8 January 2024 (UTC)

Wiki Education assignment: Public Writing C1

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Definition is Wrong

The purpose of an investment is to move value across time, not to make money. If I have some temporary value today (e.g., an ice cream cone that will soon melt), I invest by trading it for anything that has value tomorrow or some time in the future. It doesn't matter that I get more for it. I could trade 5 ice cream cones today for 1 ice cream cone tomorrow. That is better for me, even if I have "less" tomorrow.

We are lucky that, now, most financial investments have a positive monetary return. But, in the past, that was not true. People would invest with a negative return --- pay a fee for someone to hold their gold in a safe --- in order to have a higher likelihood of value at a future date. They had gold today and wanted gold in the future and the best investment was to pay some of that gold to someone.

Even today, a positive return is not guaranteed. Germany's 10-year bond had a negative yield for all of 2020. The holders of it were still investing.

Mdnahas (talk) 19:46, 31 January 2023 (UTC)

Better definition provided in the lead section now. Cerevisae (talk) 13:33, 1 March 2023 (UTC)

Wiki Education assignment: Research Process and Methodology - SP23 - Sect 201 - Thu

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