Direct Investment
Investment in Tangible Assets
Direct investment are very wide issue to study, but it‘s not so close to traditional investing. Direct investments are more related with business development and would depend on business sector and market characteristics.
For example, a company which main business is construction may rise up the question of is it worthwhile to invest in new cranes or if possible just rent it. If a company has excess of funds, it could make such investment, but only if it really worth it. Or maybe it will be just more profitable to invest in bonds or other financial investments.
Such direct investment may be possible not only for business, but also for individuals. A simple example would be: you have a dwelling house and calculate that the annual electricity spending makes three thousand dollars. If you could build a local wind power plant for the thirty thousand dollars and it would satisfy all your electricity needs, perhaps it would be quite good investment? However, the precise answer to this question would require more detailed investment return calculations compared with other alternatives including possible risks assessing.
Direct investment also may be perform as direct investment in stocks (when large stakes of shares are bought direrctly from company or its representatives.)
