There are several phases through which investment decision making could be proceeded, which are based on scientific bases. As it traditionally commences with the accurate identification of the matter or the problem the subject of the decision, then the identification of the available or the possible alternatives for handling the problem. In addition, it goes through the identification of shortcomings associated with every alterative that has been identified, in addition to the comparison between the shortcomings and the presented alternatives. Consequently, the investment decision could be made. We will tackle in this article the phases of investment decision making in details.
What's the Concept of Long-Term Investment?
General speaking, the term of investment is associated with three economic concepts, which are limited to impairment, sacrifice, and waiting. In this sense, the investment means to sacrifice by an immediate specific monetary expenditure in exchange for an expected return in the future. Consequently, this expected return becomes a representative of the price of impairment, sacrifice, and waiting for the invested amounts during the investment period. On this basis, if the investment period is one year or less, then the investment will be short-term, and if the investment period is over a year, then the investment will be long-term. From the above mentioned, we can argue that the long-term financial investment is a financial association with substantial amounts immediately, with the aim of achieving profits in the long term. Thus, the long-term investment could be associated with several specifications, which are: