I received an interesting email today from a reader who surprises me with a very basic yet intriguely mind stimulating question.
He asked me what makes a good investment. I had to think a while before replying him and thought it'll be a good point for discussion.
A good investment in my definition is something in the future that you can derive a greater value than what was invested in the beginning. The key word there is "greater value" and this aspect can be both known or unknown.
One example of a "known" aspect is putting your money in a triple A credit rating government bond or in the local context the Singapore Savings Bond (SSB) for instance, which yields investors a return of about 1.2% to 2%. What this means is if you put $10,000 today, this amount will grow to more than $10,000 sometime in the ......