From the course: Investment Evaluation

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Types of investments

Types of investments

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- So you have some money that you can invest. The inventory is taken care of, you've built up some economic capital for a rainy day, and you're ready to scale up your business. Well, there are definitely things you can invest in. First and foremost, think of plant, property, and equipment or PP&E. These are items that help you in production. Maybe it's a more efficient tractor that breaks down less, or a more powerful boosters for your SpaceX rocket. Any improvement that will increase production rate and attract investors is a worthwhile investment. Super profitable. However, keep in mind that assets generally lose value over time. So you won't be able to sell an asset at the same price you bought it for. You can also buy real estate. Especially if you're looking to expand services, locations, or inventory. I love real estate. It's one of the only assets that appreciates over time. So you can hold on to it, milk it for a home equity line of credit, or as a rental property and then…

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