Investment may be counted on the gross or the net basis. Net investment is gross investment minus depreciation. Investment may be ex-ante or planned or anticipated or intended investment; or it may be ex-post, i.e., actually realized investment, or when investment is not merely planned or intended, but which has actually been invested or implemented. This is so true when Buying Investment Properties.
Another classification of investment may be private investment or public investment. Private investment is on private account, i.e., by private individuals, and public investment is by the government. Private investment is influenced by marginal efficiency of capital i.e., profit expectations and the rate of interest. It is profit-elastic. Public investment is by the state or local authorities, such as building of roads, public parks etc. In public investment, profit motive does not enter into consideration. It is undertaken for social good and not for private gain.
Investment which is independent of the level of income, is called autonomous investment. Such investment does not vary with the level of income. In other words, it is income-inelastic. Autonomous investment depends more on population growth and technical progress than on anything else. The influence of change in income is not altogether ruled out, because higher income would probably result in more investment. But the influence of income is negligible as compared with the influence of population growth and progress of technical knowledge.
Examples of autonomous investment are long-range investments in houses, roads, public buildings and other forms of public investment. Most of the investment is undertaken to promote planned economic development. It also includes long-range investment to bring about technical progress or innovations. Public investment means investment which occurs in direct response to invention, and much of the long-range investment, which is only expected to pay for itself over a long period, can be regarded as autonomous investments.
|Warren Buffett On Investment Strategy | Full Interview Fortune MPW
The annual Fortune MPW interview with the world’s most successful investor – Warren Buffett, Chairman and CEO, Berkshire Hathaway. Want to see more Fortune Video? Subscribe to our channel…
|Bitcoin – What You NEED To Know Before Investing in Bitcoin
Bitcoin has been all over the news. But should you be investing in Bitcoin or buying bitcoin? Well, here are 4 things you need to know before buying or investing in Bitcoin Subscribe To Our…
|The Biggest Lie In Investing That You Believe In | TEDx Talk
In this TEDx Talk event, trader Alessio Rastani exposes one of the biggest lies in investing that almost everyone believes in… It reveals a truth a big truth about the stock market and the economy.
|POTY SALAH + YPOTY SANE / INVESTMENT TALK!
Here we go bros! Twitter: https://www.twitter.com/runthefutmarket FIFA 18 ULTIMATE TEAM FIFA 18 POTY.
|Dave Ramsey Explains His Investing Process
Dave Ramsey explains his investing process and how he builds wealth every day. Investing does not have to be complicated, it just requires knowledge and consistency. Watch as Dave lays out…