This is the episode 5 of ‘What is Investing?’ of ‘Economics with Dad [EconoDad].’
EconoDad is an exciting and intriguing economics education in storytelling style!
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Oil Well and Chocolate Factory; Examples of Investment
There are many kinds of investments in the world.
Not only buying stocks but also extracting oil and making chocolates are investing.
David’s dad takes two examples to explain investment.
Buying land and building a factory to sell more chocolates in the future is also investing.
In that case, “the land and factory” are the targets to buy, and “money” is what they need. And they will eventually make “more money” if the chocolates sell well.
In the case of extracting oil, “oil wells and machinery to extract oil” are the investment target, “Money” is what you need now to buy them. And you can earn “more money” in the future when you sell the oil in the market.
Next time, David’s dad will explain about what we can invest besides money. He said we have many resources to invest.
oil well, resources, oil market