One of the main reasons why most people fail in the game of investing is that they play it without understanding the rules which regulate the same. It is undoubtedly an obvious fact that you cannot win any game if you violate its rules. Additionally, people fail in investing in that they play the game without understanding what investment is all about.
The basics of investment
The investment project manager suggests that there are 2 key features of the investment. It is an income-generating valuable element. Every position belonging to or property should satisfy both conditions before it can qualify to become an investment. Otherwise, it would be something other than the investment. The first feature of the investment is that it isn't valuable possession that is very useful or important. Hence any position belonging to all the property that has no value is not and cannot be any form of Investment.
One of the essential features of investment is that it is in edition to be invaluable, and it should be income generating. It means that it should be able to make money for the owner or at least help the owner in making money. All the investments have the wealth-creating capacity, obligation responsibility, and function. Any possession belonging or property that cannot generate income for the owner or at least help the owner in generating income cannot be termed as an investment.