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investment

in-VEST-ment /ɪnˈvɛstmənt/

nounB2GRESAT

neutral

The action or process of investing money for profit or material result; a thing that is worth buying because it may be profitable or useful in the future.

Implies putting resources (money, time, effort) into something with the expectation of future benefit or return.

The story behind the word. The word 'investment' comes from the Latin 'investire,' meaning 'to clothe in' or 'to surround.' This might seem odd for money, but think of it as 'clothing' your money in something (like stocks or property) with the hope that it will grow and yield more. The idea is to put your resources 'into' something to cover it, allowing it to develop.

Word relationships

asset: An 'asset' is something owned that has value; an 'investment' is the act of acquiring such an asset or the asset itself when acquired for future gain.
venture: A risky undertaking, often business-related, with a potential for profit.

divestment: The action or process of selling off subsidiary business interests or investments.
consumption: The act of using up resources, often without future return.

Commonly confused with

speculation: 'Investment' is typically based on fundamental analysis and long-term growth; 'speculation' involves higher risk and shorter-term bets on price movements.

Word family

invest (verb): To put money into financial schemes, shares, property, etc. with the expectation of achieving a profit.
investor (noun): A person or organization that invests money in order to make a profit.

Collocations

financial investment
long-term investment
sound investment
return on investment (ROI)
make an investment
portfolio investment

Example sentences

"His diverse investment portfolio included stocks, bonds, and real estate." Financial markets.
"Education is often considered the best investment one can make in themselves." Personal development.
"The company made a significant investment in new technology to improve efficiency." Business strategy.

Memory hook

You 'invest' money to 'vest' (clothe) it in something that will grow. Clothe for growth

When not to use

Do not use 'investment' for a simple purchase that provides no future financial return or significant long-term benefit.

Fun facts

The concept of 'socially responsible investment' (SRI) has grown significantly, where investors choose companies based on ethical and environmental criteria.