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investment

/ɪnˈvɛstmənt/
noun★Intermediate— act of allocating resources
📈Investment
formal

the action or process of investing money for profit or material result

The company announced a $500 million investment in renewable energy.

The company committed $500 million to fund projects in clean energy.

Real estate is often considered a safe investment.

Buying property is typically viewed as a low-risk way to grow wealth.

💡

In finance, investment refers to purchasing assets (stocks, bonds, property) with the expectation of generating income or appreciation.

💼Business
formal

a thing that is worth buying because it may be profitable or useful in the future

The new software is a smart investment for our team.

The new software will likely save time and improve productivity.

💡

Commonly used in business contexts to describe purchases expected to yield long-term benefits.

formal

the process of devoting time, effort, or energy to a particular undertaking with the expectation of a worthwhile result

His investment in learning French paid off when he moved to Paris.

His dedication to studying French led to a successful relocation.

💡

Used metaphorically to describe non-financial commitments.

Collocations

long-term investmentan investment held for several yearsshort-term investmentan investment held for less than a yearhigh-risk investmentan investment with potential for large gains or losseslow-risk investmentan investment with minimal chance of lossreturn on investment (ROI)profit generated relative to the investment cost

Synonyms

allocationexpenditurecommitmentventure

Antonyms

divestmentwithdrawaldisinvestment

Related Phrases

return on investmentphrase
profit generated by an investment
capital investmentphrase
funds used to purchase long-term assets
investment portfoliophrase
collection of investments held by an individual or organization

💡Pro Tip

Distinguish investment from expense

An expense (e.g., buying groceries) provides immediate value, while an investment (e.g., education) aims to provide future benefits. Ask: 'Will this create value over time?'

⚡Gold Rule

Diversify investments

Spread investments across different asset classes (stocks, bonds, real estate) to reduce risk. Never put all resources into one venture.

Consider liquidity

Some investments (e.g., stocks) can be sold quickly, while others (e.g., real estate) take time. Match investment type to your timeline.

📖Word Origin

From Latin 'investire' (to clothe), from 'in-' (into) + 'vestire' (to dress). Originally referred to the act of surrounding a place with troops (16th century). Financial sense emerged in the 17th century, referring to putting capital into a venture.

📝Usage Notes

Commonly used in financial contexts but can describe any commitment of resources (time, money, energy) for future benefit. Always implies an expectation of return or benefit, though the return may not always be financial.

Word Breakdown

in-
into
prefix
+
vest
clothe (metaphorically: surround/engage)
root
+
-ment
result of an action
suffix
English Dictionary

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