Economy

What is long-term investment? »Its definition and meaning

Anonim

Long-term investments are money placements in which a company or organization decides to keep them for a period greater than one year, counted from the date of presentation of the balance sheet. These investments are time consuming, but you can usually get higher returns.

These investments are related to the start of any company, when they begin to develop. By investing in the long term, it is not intended to obtain immediate profits, its objective is simply to generate a base, which in the future generates the desired benefits.

The term investor of this type generally looks for companies with good dividends and that are safe.

The main characteristics of long-term investments are:

It is concrete, you know what you want and an approximation of how much you must pay to have it.

Low liquidity, they are generally goods that are not so easy to sell, therefore, they cannot be converted into money so quickly.

Uncertainty in its performance, although it is known when the disbursement must be made, there is no certainty about whether it will be profitable.

Long-term investments are reflected in fixed assets, if they are real estate (buildings, land, etc.), while if they are patents of an investigation, they will be shown in deferred assets.

In recent times, the best option to invest in the long term is through the stock market, this becomes an interesting option for people who seek to generate profits over time, seeking long-term performance, patiently and without haste.

By investing long-term in the stock market you can achieve a good return, you only need to analyze the stock markets and deduce which are the safest investment bets. It is a very interesting medium as long as it is bought at the lowest possible prices, otherwise it might not be such a good idea.

Among the advantages it offers are: it is not as absorbing as other temporary terms, since in principle they require less study and dedication, but when it is won, it produces considerable profits. Another advantage is that it is less stressful and they are less exposed to manipulation.