Wait, what?
Please tell me where I can buy a stock for $1.1M that is paying me effectively 12% a year in income taxed at the dividend rate.
Wait, what?
The bank is in a rural area within the Midwest with only a few locations and was started in the early 80's. None of the owners will sell the shares. They are all enjoying the dividends. Not a joke, I'm very close to this person and I've seen the checks myself.
A savings vehicle has little to no price volatility, whereas as investment entails taking on some risk of that you will lose your money in exchange for some chance of increasing in value.HEDGEFUNDIE wrote: ↑Fri Aug 31, 2018 10:55 amWhat is the difference?neveragain wrote: ↑Fri Aug 31, 2018 10:50 am But some people say CDs are not an investment, just a way to save money.
So if I have a stable value fund in my 401k paying 3%, that is not an investment?vineviz wrote: ↑Sat Sep 01, 2018 9:35 amA savings vehicle has little to no price volatility, whereas as investment entails taking on some risk of that you will lose your money in exchange for some chance of increasing in value.HEDGEFUNDIE wrote: ↑Fri Aug 31, 2018 10:55 amWhat is the difference?neveragain wrote: ↑Fri Aug 31, 2018 10:50 am But some people say CDs are not an investment, just a way to save money.
I’d say that a CD, which has no real chance of going to $0.00, is not really an “investment” in the classic sense of the word.
Bitcoin?
Just like at the track or casino?
So treasuries are not an investment then?vineviz wrote: ↑Sat Sep 01, 2018 9:35 amA savings vehicle has little to no price volatility, whereas as investment entails taking on some risk of that you will lose your money in exchange for some chance of increasing in value.HEDGEFUNDIE wrote: ↑Fri Aug 31, 2018 10:55 amWhat is the difference?neveragain wrote: ↑Fri Aug 31, 2018 10:50 am But some people say CDs are not an investment, just a way to save money.
I’d say that a CD, which has no real chance of going to $0.00, is not really an “investment” in the classic sense of the word.
That’s right.HEDGEFUNDIE wrote: ↑Sat Sep 01, 2018 9:43 amSo if I have a stable value fund in my 401k paying 3%, that is not an investment?vineviz wrote: ↑Sat Sep 01, 2018 9:35 amA savings vehicle has little to no price volatility, whereas as investment entails taking on some risk of that you will lose your money in exchange for some chance of increasing in value.HEDGEFUNDIE wrote: ↑Fri Aug 31, 2018 10:55 amWhat is the difference?neveragain wrote: ↑Fri Aug 31, 2018 10:50 am But some people say CDs are not an investment, just a way to save money.
I’d say that a CD, which has no real chance of going to $0.00, is not really an “investment” in the classic sense of the word.
I should have expressly included the common denominator that separates both savings and investments from things like wagers: ownership of an asset.
If we went into a period of deflation the money would grow in real terms.neveragain wrote: ↑Sat Sep 01, 2018 10:25 amTo me, that's just saving, not investing. Since the money won't grow at all.
OK, so at the other end of the spectrum is there a common denominator that separates investments from speculation in oyster bed individual stocks?vineviz wrote: ↑Sat Sep 01, 2018 10:43 amI should have expressly included the common denominator that separates both savings and investments from things like wagers: ownership of an asset.
If there is deflation then it has grown in real terms. If interest rates go negative, cash is a positive real investment.neveragain wrote: ↑Sat Sep 01, 2018 10:25 amTo me, that's just saving, not investing. Since the money won't grow at all.
Bitcoin is no different than gold. The only difference is that gold has 1000s of years track record.
Prudence?cheese_breath wrote: ↑Sat Sep 01, 2018 12:03 pmOK, so at the other end of the spectrum is there a common denominator that separates investments from speculation in oyster bed individual stocks?vineviz wrote: ↑Sat Sep 01, 2018 10:43 amI should have expressly included the common denominator that separates both savings and investments from things like wagers: ownership of an asset.
Good answer.vineviz wrote: ↑Sat Sep 01, 2018 12:28 pmPrudence?cheese_breath wrote: ↑Sat Sep 01, 2018 12:03 pmOK, so at the other end of the spectrum is there a common denominator that separates investments from speculation in oyster bed individual stocks?vineviz wrote: ↑Sat Sep 01, 2018 10:43 amI should have expressly included the common denominator that separates both savings and investments from things like wagers: ownership of an asset.
When trying to define "investment" one has to also has to define "savings", "speculation", and "gambling".cheese_breath wrote: ↑Sat Sep 01, 2018 3:42 pmGood answer.vineviz wrote: ↑Sat Sep 01, 2018 12:28 pmPrudence?cheese_breath wrote: ↑Sat Sep 01, 2018 12:03 pmOK, so at the other end of the spectrum is there a common denominator that separates investments from speculation in oyster bed individual stocks?