What is an Investor?

Greetings,

What is an investor? You might be surprised how simple the answer is. A lot of people shy away from investing because it seems too complicated, or they think you have to have a lot of money to be an investor.

A simple way to define the act of investing could be: buying something with the hopes of getting more back than you put in.

Think about a farmer in this way. Let’s say he buys a seed of corn, and plants it with the hopes that soon he’ll have a stalk of corn with several ears of corn. He now has more than he put in the ground. The farmer is the investor.

If we relate this to buying stocks, it could be described the same way. If you are the investor, you are committing money to a company with the expectation of generating a return.

An investor, to be clear, is not a gambler. Gambling is putting money at risk by betting on uncertain outcomes with the hope that you might win money. Part of this confusion between investing and gambling may come from the way people use investment vehicles. For example, it could be argued that buying a stock based on a “hot tip” you heard at the water cooler is essentially the same as placing a bet a casino. A true investor does not simply throw his or her money at any random investment.

Learning and mastering the rules of investing takes a life-long investment in financial education. Understanding the basics will get you started. Where you go from there is up to you.

The level of which kind of investor you become is up to you. How to be a successful investor depends on your education.

This is what makes Rich Dad different.

Sincerely,
The Rich Dad Company

Copyright © 2016 The Rich Dad Company.

4330 N. Civic Center Plaza, Suite 100 Scottsdale, AZ 85251 USA