Post
Topic
Board Economics
Re: Reality of investments on practice
by
Smartprofit
on 25/06/2025, 16:13:16 UTC
In my opinion, the purpose of investing is not to create capital. The purpose of investing is to preserve existing capital. It is good for an investor if his investments allow him to preserve his savings from inflation.

To create initial capital, other methods are needed - for example, entrepreneurship, business or highly paid hired work. These types of human activity allow you to receive very large incomes and bear small expenses.

With the help of these types of human activity, you can create initial capital and subsequently become a rentier, that is, live on interest, dividends, rent, royalties, and so on.

The most important thing to remember when creating initial capital is that your income must exceed your expenses. You must have a profit.