This Probably Won't Go Anywhere, But...

[Balticfox]

Originally Posted by Peter_Spaeth

Why does something have to throw off an income stream to be deemed an investment?

Because without the element of a potential income stream at some point down the road, a buyer is merely hoping/speculating that another buyer will pay more for the asset without a quantifiable rationale. If any or every such purchase can be dignified as an investment, then there is no way such purchases can be differentiated from putting money down on the ponies, in Las Vegas or on lottery tickets. Yet the latter purchases/bets under standard nomenclature are termed "gambling" not "investment".

[BioCRN]

Originally Posted by Balticfox

Because without the element of a potential income stream at some point down the road, a buyer is merely hoping/speculating that another buyer will pay more for the asset without a quantifiable rationale. If any or every such purchase can be dignified as an investment, then there is no way such purchases can be differentiated from putting money down on the ponies, in Las Vegas or on lottery tickets. Yet the latter purchases/bets under standard nomenclature are termed "gambling" not "investment".

There is a lane for the investment "flipping" world that's guided by intelligent speculation, even some based in an established reality of the moment.

During COVID, many people holding onto traditionally "safe" 70/30 - 40/60 stocks/bonds ratio were seeing a give and take of their returns as the market bounced around favoring one or the other.

People getting ahead of trends were banking, especially ones that show themselves enough to be a reliable event. My lane was buying oil/gas stocks when China announced major manufacturing area shutdowns (down) and selling when those areas reopened (up). There were 4+ major fluctuations during the COVID era that led to great returns.

There's room for speculators that don't need a steady supplement to their income from dividends/etc.

To bring it back to cards, I invest in what I consider under-valued graded cards of guys that I feel will make the HOF in my lifetime. Somewhat recently, the 15+ years I spent bidding low and snapping up Jim Kaat RC's paid off extremely well. I didn't consider him an "if" candidate, I considered him a "when" candidate.

I look forward to much of the same with Luis Tiant in the near future.

[Rhotchkiss]

I found the following definitions of Investment online, searching "Investment defined" on google:


"An investment refers to any asset that is obtained for cost on the grounds that it is expected to provide value in the future that will exceed its initial cost and time to value."

"Investing, broadly, is putting money to work for a period of time in a project or undertaking to generate positive returns (profits that exceed the amount of the initial investment). It's the act of allocating resources, usually capital (i.e., money), with the expectation of generating an income, profit, or gains."

"the outlay of money usually for income or profit" (Merriam Webster)

"the act of putting money, effort, time, etc. into something to make a profit or get an advantage, or the money, effort, time, etc. " (Cambridge Dictionary)

It seems all of the above definitions require the same elements for an investment:
1. Actually laying out money
2. To acquire an asset
3. Intending to make a profit/more money than was laid out

There is no requirement that the asset produce income, rather that the one expects to earn more than they paid for asset.

The difference between cards and "gambling" is that in gambling you are not acquiring an asset/seeking to profit from an asset.

Cards are 100% an asset and I 100% invest in cards (and have done well - its been a good investment).

[raulus]

I’ve said it before, but I’ll repeat it again. I don’t think the speculative term is meaningful when it comes to investments, simply because the line gets really fuzzy at times.

But there’s a definite difference between productive and unproductive assets. Gold, Bitcoin, cardboard, all unproductive assets. Farmland, income-generating companies, etc. fall into the productive bucket.

Certainly there’s nothing wrong with unproductive assets, although some might take offense at the name. Just a different flavor with different characteristics, and a different approach to valuing them. Plus with unproductive assets, you usually can’t get much (economically) from them while you hold onto them. With a productive asset, you might get something while you hold and wait for the right time to sell. But even with productive assets, plenty of them don’t deliver much while you wait for the right time to sell.

As an added challenge, many nonproductive assets, including cardboard, often have ongoing costs to hold them. Even if it’s just storage costs, it’s something. And if you have insurance, the costs are usually more.

[Balticfox]

Originally Posted by raulus

But there’s a definite difference between productive and unproductive assets. Gold, Bitcoin, cardboard, all unproductive assets. Farmland, income-generating companies, etc. fall into the productive bucket.

Despite not normally generating an income stream, gold (and silver) straddles the line between unproductive and productive. Given its unique characteristics, e.g. the single most malleable plus the single most ductile metal and its complete resistance to corrosion under any natural circumstances, it's a very useful substance. That's why it has several thousand years of history in coinage and decorative applications such as jewellery. And because it's an excellent conductor as well, it now has its uses in high tech electronics as well.

But what's actually most important these days for gold is that its long history in coinage applications has given it cachet as an alternative to government fiat currencies. Therefore when everything goes to hell in a handbasket and government money isn't worth the paper upon which it's printed (that's the history), gold and siver will be the only currencies accepted for transactions. (And of course when everything does collapse and an alternative currency is actually needed, Bitcoin accounts will have disappeared with the internet.)

[raulus]

Don’t forget that Bitcoin has some decorative value too!