Thursday, July 13, 2017

THE FIVE CARDINAL POINTS OF INVESTMENT

When investment is being talked about, it isn't about having some cash somewhere and just rushing to put that cash into something and hoping it would profit. Many people have become bankrupt just doing that. Investment and investing has to be approached holistically and should be tailored around history and recent trends.

Even though there are several types of investment opportunities, in this post, I am going to talk about the five cardinal points of investment. When I say cardinal, I mean that historically and economically, these investments usually don't fail. These investment opportunities have proven to be lucrative again and again for any investor going into them.

1. Precious metals.

For over two thousand years, man has been investing in precious metals, especially gold and silver and today, wise investors are still diversifying their investments in gold and silver investment. Precious metals are used extensively in the manufacturing industry and I still don't envisage a time when it would loose it's value.

Gold and silver investments are lucrative because historically, they are not affected by inflations or economic meltdowns. They serve as an edge against physical money. This means that when money fails, which it always does, gold and silver are always used as bailouts till money picks up again.

They serve as store of value and wealth. This means that they are money in metal form and they are relevant in every geographical location of the world. Precious metals investments are arguably the wisest form of investment year-in-year-out.

2. Agriculture.

This is also an important investment sector. This covers cash crops and foods. According to Abraham Maslow's pyramid of needs, food is a standard necessity of life. Everybody eats food. People can overlook a lot of other things due to their socio-economic status, but nobody overlooks food, including the rich and the poor.

This is why investment targeted in agriculture is bound to be a good one, save for natural disasters or pestilences. Agriculture is the oldest form of investment and because it is still relevant today, it made the list of the five cardinal points of investment. So far people will continue to eat and drink, wear clothes and build things with materials gotten from agriculture, it will always continue to be a lucrative investment decision.

3. Real Estate.

Shelter is important and people have to live somewhere. Infact, real estate became a political and economic system in the middle ages when Lords who had lands controlled the destinies of serfs who get the land on lease for shelter, agriculture and military service.

To show the importance of real estate, the major wars of the world have been motivated by the urge of wanting to aqcuire more land and the resources they hold. A large percentage of the richest peoples have stakes in real estate investing as it has the spontaneous ability to always increase in value and earn investors stress free passive income for life.

4. Communication.

Even before Abraham Bell invented the telephone communication was a great economic and social interaction pillar. After he did, it has opened up the world of communication to the world, making the world shrink more and more with each passing day. Like food, communication has become integrated into the lives and cultures of people. People just have to get in touch with people by any means.

Investing in communications ranges from mails to satellite calls. Investment in this sector won't fail as people won't stop wanting to get in touch with each other, whether by manual or electronic mail, calls or texting or through social and instant messaging networks. This is why the inventors of Whatsapp and Facebook would be billionaires.

5. Transportation.

Whether it is by animals or by supersonic jet, transportation is also a cardinal investment because people have always been moving, are moving, and will always continue to move from one place to another. For people to move, they have to move by some means of transportation. In any economy, the transportation industry is one of the most important sector, that is why investment in transportation is cardinal, insofar that people have to move.

These five investment opportunities have been proven historically and economically usually not to fail. So, be wise and invest in any of them. If you have enjoyed this post, please share. Thanks.

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THE FIVE CARDINAL POINTS OF INVESTMENT

When investment is being talked about, it isn't about having some cash somewhere and just rushing to put that cash into something and h...