Last modified on 19 October 2014, at 04:15

Investment

Investment is most intelligent when it is most businesslike.
- Benjamin Graham, 1973

Investment is a term with varying meanings in economic, financial and military contexts; in economics, investment is related to saving and deferring consumption, and being involved in managing resources of time, energy, materials and efforts in many areas of an economy.

CONTENT : A - F , G - L , M - R , S - Z , See also , External links

QuotesEdit

Quotes are arranged alphabetically by author

A - FEdit

  • The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There's a problem, though: They are dancing in a room in which the clocks have no hands.
  • With all the clever brains in America it would be great to see more investment and focus on this essential research!
    • Louise Burfitt-Dons Video message sent to Joe Biden in response to his suggestions for green jobs (2009).
  • Every child in American should have access to a well-stocked school library. … An investment in libraries is an investment in our children's future.
    • Laura Welch Bush As quoted in Biography Today : Profiles of People of Interest to Young Readers, Vol. 12, Issue 2 : Laura Bush by Joanne Mattern (2003), p. 34.

G - LEdit

  • To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.
  • Investment of capital, to yield its fruit in the future, must be based on expectations, of opportunities in the future. When I put this to Hayek, he told me that this was indeed the direction in which he had been thinking. Hayek gave me a copy of a paper on 'intertemporal equilibrium', which he had written some years before his arrival in London; the conditions for a perfect foresight equilibrium were there set out in a very sophisticated manner.
    • John Hicks, Money, Interest and Wages (1982), p. 6.
  • The capitalists of a country which manages to capture foreign markets from other countries are able to increase their profits at the expense of the capitalists of the other countries. Similarly, a colonial metropolis may achieve an export surplus through investment in its dependencies.
    • Michal Kalecki (1965) Theory of Economic Dynamics Chapter 3, The Determinants of Profits, p. 51.
  • As this State's income rises, so does the income of Michigan. As the income of Michigan rises, so does the income of the United States. A rising tide lifts all the boats and as Arkansas becomes more prosperous so does the United States and as this section declines so does the United States. So I regard this as an investment by the people of the United States in the United States.
    • John F. Kennedy Remarks in Heber Springs, Arkansas, at the Dedication of Greers Ferry Dam. October 3, 1963[1]
  • Professional investment may be likened to those newspaper competitions in which the competitors have to pick out the six prettiest faces from a hundred photographs, the prize being awarded to the competitor whose choice most nearly corresponds to the average preferences of the competitors as a whole.

M - REdit

  • The intention of the US found its feature through a clear formulation in the Agreement for the IBRD. The “purposes of the Bank” were defined as follows: “To promote private foreign investment by means of guarantees or participations in loans and other investments made by private investors; and when private capital is not available on reasonable terms, to supplement private investments by providing, on suitable conditions, finance for productive purposes out of its own capital, funds raised by it and its other resources”
    • Nico Perrone The international economy from a political to an authoritative drive p. 130.
  • It is the rate of investment which governs the rate of saving, and not vice versa.
    • Joan Robinson (1966) An Essay on Marxian Economics (Second Edition) Chapter VIII, The General Theory of Employment, p. 66.
  • ... If you want more work and investment, you hold a sale on economic activity by cutting tax rates, thereby reducing the cost of productive activity and increasing the prospect of after-tax returns on work and investment."
    • Mike Rosen July 22, 2005 Rocky Mountain News column.

S - ZEdit

  • With joint-stock corporations, investors can place bets on the success of many different companies, without having to play a central management role in any one of them. This allows investors to diversify their financial holdings. It also allows them to capture profits on their investments, without having to get involved in the dirty, troublesome business of actually running a company.
    • Jim Stanford (2008) Economics For Everyone Part 2, Chapter 7, Companies, Owners, and Profit, p. 91.
  • It can be argued that the U.S. brokerage and investment banking industry has transformed the modern American stock market into nothing more than a mechanism for transferring wealth from shareholders to management.
  • Economic life should be definancialised. We should learn not to use markets as storehouses of value: they do not harbour the certainties that normal citizens require. Citizens should experience anxiety about their own businesses (which they control), not their investments (which they do not control).
  • What fools call “wasting time” is most often the best investment.
  • The writer, who as an engineer has spent most of his life in factories, is inclined to look at the basis for investment from a technological point of view... Consider ... the class of industrial investments only... The situation is one of entrepreneurs and boards of directors considering, from time to time, various ’possibilities of investment’, such as extra lathes or looms, an extension to a factory, a venture in some completely new product, and so on. It is helpful to think of these ’opportunities for investment’ as existing, in a given situation, in great number and variety, whether they are at that moment under active consideration or not. When any such possibility is considered it is assessed in respect of ’expected profitability’. One may conveniently think of all possibilities of investment as ’quanta’ that can be placed in a schedule of small ranges of expected profitability according to these assessments. The placement of a given ’opportunity for investment’ on this schedule has some ’margin of uncertainty’ (a curious analogy with the case of the quanta of physics).
    • Arnold Tustin (1953) The Mechanism of Economic Systems p. 103; As cited in: Prices Revalued as Information: Circuit Elements, online document 2013.

See alsoEdit

External linksEdit

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