Investor
Also called: long-term investor
Someone who buys part-ownership of businesses, or other assets, intending to hold them for years and benefit from their growth and income.
An investor focuses on the underlying business: how it makes money, how it is likely to grow, and whether the price paid is sensible. Returns come from the growing value of the business and any dividends it pays.
Investing still carries risk. A long holding period helps ride out market swings, but it cannot save an investment in a business that declines.
Learn more in these lessons
- Investing compared with tradingWhat is the difference between investing and trading?
- Investing compared with speculationWhat is the difference between investing and speculating?
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