Short Video 1
The 3 major categories of investment
The first category is anything denominated in a currency, it can be bonds
it can be deposits in a bank
it can be a money market fund, it can be cash in your pocket
And the second category of investments regard items that you buy that don’t produce anything but that you hope someone will pay you more for later on
and the classic case of that is gold
The third category of asset is something that you value based on it’s what it will produce what it will deliver you buy a farm because you expect a certain
amount of corn or soybeans or cotton or whatever it may be to be to come your way
every year
and you decide how much you pay based on how much you think the asset
itself will deliver over time
Investments can be classified into three main categories: currency-based investments, non-producing items like gold, and assets valued based on their expected production and delivery. Currency-based investments include bonds, bank deposits, money market funds, and cash. Non-producing items, like gold, are bought with the expectation of higher payments.