The Foundations of A Successful Investment

Investment in its most simple form means “using an asset you own to generate future profits” and assets don’t always mean money; sometimes it could be time, effort, or a property you own.

With this perspective, we can consider two school kids pledging portions of their lunches to each other as a crude form of investment.

As for profits, it is up to you to define what is acceptable to you, based on the alternatives that surround you. For skilled investors, this is where using the time value of money comes in.