Monthly Archives: December 2016

Study: My Understanding of Investments

Methods of Passive Investing.

Business involves buying and selling of goods and services. Services are things which cannot be felt by use of hands. Goods are things which can be touched. The aim of each and every business is making profit. Expect profit to be gotten by selling goods and services at a higher price than the original price. It has been known for some factors to hinder us from making a profit in business. Expect some factors like damages, improper management, and prevailing market price to hinder profit making in a business. It has been known for the price of some goods to fall thus hindering profit making. This will automatically lead to little or no profit. Profit in a given business can also fail as a result of damages. Some goods such as foods may expire and turn into wastage. It is most likely for delicate good to be damaged in their transportation process. This also go into waste.

Improper management can also lower profit. Low profit making may come as a result of theft in business. It is most likely for a business to close down due to such factors. There are four categories of business activities. These four categories are manufacturers, wholesalers, retailers, and consumers. It has been known for each and every category of business to play a different role. It is most likely to mention of passive investment the time we talk about business.

Expect passive investment to be a market investing strategy that looks on a market-weighted portfolio. This kind of investment as the name suggests is unlimited to any item. Every kind of investment is done for a purpose. The sole purpose in investment is making of profit. This return may be in form of monetary value or for goods value. Let we know about investment for money gain. There are various ways of passive investment. One of it is use of banks to invest your capital.

This is a kind of passive investment that is very safe. A requirement in this type of passive investment is to invest your money in a bank to earn an interest. The interest earned is dependent on a given time. Agreement can be made by the two parties on the duration of such an investment. The interest gotten is your profit in such an investment. Another way of a passive investment is buying and renting of properties. You can buy rental houses and start renting them. After a specified amount of time of renting such houses, it will return the original investment.

This kind of profit will be a permanent continuous made profit. Another option is to buy and sell investment objects. Buying and selling a machine at a much higher price than the original price can be another way of passive investment. Another option in passive investment is development of small businesses for the goal of making profit.

Source: http://stumbleforward.com/2016/12/20/take-advantage-savings-practical-ideas/