investment
B2Pronunciation
UK
- /ɪnvˈɛstmənt/
US
- /ˌɪnˈvɛsmənt/
- /ˌɪnˈvɛstmənt/
Description
- spending money for future profit
- dedication of time or effort
- resource allocation for benefit
An investment isn't just about money; it's about putting resources—whether that's cash, time, or effort—into something with the hope of a positive return. Think of planting a seed: you invest water and care, hoping for a beautiful flower or tasty fruit. Similarly, buying stocks is an investment in a company, expecting its value to grow. You can also invest in relationships, dedicating your time and energy to nurture them. A good investment pays off down the line!
The word "investment" most commonly refers to the act of allocating money with the expectation of generating income or profit. This can take many forms: buying stocks, bonds, real estate, or starting a business are all examples of financial investments. You invest in these things hoping they will increase in value over time, providing you with a return on your initial outlay. For example, "She made a wise investment in renewable energy."
However, "investment" extends beyond just finances. It can also describe the dedication of time, effort, or emotional energy into something considered valuable. You might invest heavily in your education, spending years and resources to gain knowledge and skills. Or you could invest in a friendship, nurturing it with loyalty and support. A parent invests countless hours caring for their child.
The key element of an investment is the expectation of a future benefit—not necessarily a monetary one. It implies a deliberate commitment to something with the anticipation of positive outcomes, whether those are financial gains, personal growth, stronger relationships, or simply a sense of fulfillment. A failed investment isn't always about losing money; it can also mean wasted time or effort.
So, while you might hear about investments in the stock market on the news, remember that investing is a broader concept. It's about strategically allocating resources to build something better for the future, in any area of life.
Examples
- 1
First investment
She made her first investment in a small technology company.
- 2
Beginner advice
The bank offers advice on safe investments for beginners.
- 3
Property purchase
They bought the apartment as an investment, not as a place to live.
- 4
Education
A good education is an investment in your future.
- 5
Public transport
The city needs more investment in public transport.
- 6
Regional jobs
Foreign investment has helped the region create new jobs.
- 7
Staff training
Training new staff requires a big investment of time.
Pattern
investment of time/effort
time or effort spent now for a possible future benefit
- 8
Business calculation
Before buying the new software, we calculated the return on investment.
Phrase
return on investment
the benefit or profit you get compared with what you spent
Forms and spellings
2 forms open this card.
Main spelling
- investmentnoun
Forms
- investmentspluralnoun