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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BELLATRIX EXPLORATION $9.96 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration.com; Shares outstanding: 171.0 million; Market cap: $1.7 billion; No dividends paid) has announced an expanded joint venture agreement with Grafton Energy Co. I Ltd. The deal should speed up the development of Bellatrix’s Cardium shale oil deposits in west-central Alberta.
Under the new deal, Grafton increased the amount it is paying Bellatrix to $250 million from $200 million.
In return, Grafton gets 54% of the production from a three-year, $244-million drilling program. It will get this share of the wells’ output until it earns back its $250 million, plus an 8% return on its original investment. It will then hold a 33% interest in each well.
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Under the new deal, Grafton increased the amount it is paying Bellatrix to $250 million from $200 million.
In return, Grafton gets 54% of the production from a three-year, $244-million drilling program. It will get this share of the wells’ output until it earns back its $250 million, plus an 8% return on its original investment. It will then hold a 33% interest in each well.
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DIEBOLD INC. (New York symbol DBD; www.diebold.com) is a leading maker of automated teller machines (ATMs). It also makes safes, vaults and building-security systems. The company gets 52% of its revenue from overseas....
CARFINCO FINANCIAL GROUP INC., $9.71, symbol CFN on Toronto, provides car loans to consumers who don’t meet the criteria of traditional lenders, like banks. In September 2013, Carfinco expanded into the U.S. through its $9.5-million purchase of Persian Acceptance Corp., an automotive lender that also caters to less-affluent borrowers. The acquisition increased Carfinco’s loans outstanding by 22%. In the three months ended December 31, 2013, the company’s revenue rose 29.6%, to $24.9 million from $19.2 million a year earlier. Carfinco loaned $46.0 million in the quarter, up 14.8% from $40.1 million....
CISCO SYSTEMS INC. $22 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.2 billion; Market cap: $114.4 billion; Priceto- sales ratio: 2.5; Dividend yield 3.4%; TSINetwork Rating: Average; www.cisco.com) plans to invest $1 billion over the next two years on building a new cloud-computing service, which will let businesses lease data processing and storage systems instead of buying their own.
This is a small investment for Cisco, which earned $2.5 billion, or $0.47 a share, in its latest quarter....
This is a small investment for Cisco, which earned $2.5 billion, or $0.47 a share, in its latest quarter....
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on buying stocks as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for members of Pat’s Inner Circle....
These two firms play increasingly important roles in the financial services industry. That’s because they help banks and other institutions cut their credit risk and comply with increasingly complex regulations. Both stocks are up sharply in the past year, but we feel they still have room to rise.
BROADRIDGE FINANCIAL SERVICES INC....
BROADRIDGE FINANCIAL SERVICES INC....
TOYOTA MOTOR CO. ADRs $111 (www.toyota.com) will pay a $1.2-billion fine after admitting that it deliberately misled consumers and regulators in 2009 and 2010 over a defect that would cause its cars to suddenly accelerate. The payment is equal to 10% of the $11.5 billion, or $7.24 per ADR, that Toyota earned in the year ended March 31, 2013....
DOREL INDUSTRIES (Toronto symbol DII.B; www.dorel.com) makes a range of items, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and recreational goods, mainly bicycles....
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice that will help you develop a successful approach to investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “While new financial products flooding the market may offer some benefits, it pays to remember that the incentives are heavily weighted in favour of the seller, not the buyer.”...
Here’s the text of the quarterly letter I recently sent to our Portfolio Management clients: “Many investors today feel uneasy about the future value of the U.S. dollar. The dollar is the key to the world monetary system. But its value is at the mercy of U.S. politicians, who can spend as many U.S. dollars as they wish. If they spend more than they collect in taxes, the U.S. can simply borrow or print the difference. It has been this way since President Nixon cut the link between gold and the dollar in the early 1970s. However, the vast U.S. budget deficits since 2008 have frayed investor nerves....