investment

An investment is an asset or property acquired to generate income or gain appreciation. Appreciation is the increase in the value of an asset over time. It requires the outlay of a resource today, like time, effort, and money, for a greater payoff in the future or for generating a profit.

An investment involves using capital in the present to increase an asset’s value over time.

Investments may include bonds, stocks, real estate, or alternative investments.

Investments can be diversified to reduce risk, though this may reduce the amount of earning potential.

In business contexts, investments are financial; however, consider how some people spend time to make higher incomes in the future (i.e. invest in a college education).

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Buying high-quality blue chip shares will maximize investor returns—but you also need to know when sell them
In next week’s Successful Investor Hotline, we’ll reveal our top stock picks for 2016. Don’t miss this unique opportunity to profit. TRANSCANADA CORP., $43.47, Toronto symbol TRP, has launched two legal challenges to the U.S. government’s recent decision to block its proposed Keystone XL pipeline, which would have pumped crude oil from Alberta to the U.S. Gulf Coast. The company spent $4.3 billion on Keystone XL and now expects to write off between $2.5 billion and $2.9 billion of this total. To put these figures in context, TransCanada’s market cap (or the value of all outstanding shares) is $30.8 billion....
Top-quality Canadian dividend stocks offer investors a unique blend of long-term cash flow and tax benefits.
ARC RESOURCES $16.05 (Toronto symbol ARX; Shares outstanding: 345.1 million; Market cap: $5.7 billion; TSINetwork Rating: Speculative; Dividend yield: 7.5%; www.arcresources.com) produces oil and natural gas in Western Canada. Its average daily output of 107,261 barrels of oil equivalent is 66% gas and 34% oil. In the three months ended September 30, 2015, ARC’s cash flow per share dropped 42.7%, to $0.51 from $0.89 a year earlier. Production fell 7.2%, and its realized oil price fell 43.8%. Gas prices declined 32.1%. Like many oil and gas producers, ARC is cutting exploration and development spending. In 2016, it will devote $550.0 million to this purpose. That’s equal to what it spent in 2015 but down sharply from $945.5 million in 2014....
The Bank of Canada cut its key interest rate to 0.50% from 0.75% in July 2015. The move came as the Canadian economy slowed along with falling prices for oil and other commodities. Even so, the long-term outlook is for higher interest rates—especially after the U.S. Federal Reserve raised its benchmark rate by 0.25% in December 2015 and signaled further increases to come. We continue to advise against investing in bonds right now. That’s because today’s low interest rates make bonds unattractive, and rising rates would push down their future value....
Target-date funds are sold as offering great benefits for investors, but we don’t think you should accept the sales pitch.
Investment and consumer companies both work hard on their marketing, because it can attract customers and spur sales. But marketing can do a lot more damage with investments than with dish soaps, since it can make an inherently risky investment look safe.

Consider “hedge fund investing”....
Clearwater Seafoods, $11.73, symbol CLR on Toronto (Shares outstanding: 55.0 million; Market cap: $645.2 million; www.clearwater.ca), is one of North America’s largest seafood companies and Canada’s biggest holder of shellfish licences and quotas....
Milestone Apartments REIT, $15.04, symbol MST.UN on Toronto (Units outstanding: 60.4 million; Market cap: $899.5 million; www.milestonereit.com), owns 61 “garden-style” apartment properties containing 19,908 units in 14 cities throughout the U.S. Southeast and Southwest.

The real estate investment trust continues to grow by acquisition....
The Chou Associates Fund invests in U.S and foreign stocks, with the aim of holding a limited number of what it sees as undervalued companies. At latest report (September 30, 2015), the fund owned 14 stocks, making up 58.2% of its portfolio. Only nine of these stocks made up more than 2% of its portfolio....