Investment is an activity based on a thorough analysis, promising the safety of capital and delivering satisfactory profits. Activities that do not meet that requirement are only speculative activities.
In bussiness, a story that many people hear from each other like a heartfelt lesson. That’s business monkey story!
In the island have a well-off village, people take care of bussiness and trade. However, have many monkey around the village, sometime they destroy crops.
One day, the wealthy merchant visited the island and found that there were many monkeys here. He offered to set up a company to buy monkeys and build a big farm on the island. Therefore, he announced that he would buy monkeys for 20 USD/ a monkey..
That is amazing with people in the island. 20 USD 10 times the price of the television, 5 times the price of the motorbike. Therefore, people rushed to catch monkeys to sell them to the merchant. The monkey also became a topic of discussion throughout the village, although it was previously an animal that made people uncomfortable.
When the number of monkeys decreased, the finding was difficult, he decided to raise the purchase price to double, mean 40 USD/fish. Everyone in the village eagerly went to find monkeys.
The number of monkeys is exhausted, the monkeys increase their prices to 50 USD, then 60 USD, 70 USD/fish, but the quantity of monkeys bought is less and less.
At the same time the monkeys’ prices skyrocketed, the people on the island thought of a way to build a cage to keep the monkey, waiting for a higher price, not to sell immediately to the merchant. At this point, the merchant said he would go to the mainland to have important things to do and let the maid stay and continue to buy monkeys.
When he left, the maid brought all the monkeys that were resold to the villagers for 35 USD/fish and instigated people to wait for the boss to sell 70 USD/fish. The villagers happily competed to buy, locked up in the barn, waiting for a chance to pay 35 USD each. But the villagers kept waiting, waiting, no one saw him coming back.
Obviously, the merchant used a trick to deceive the whole village and eat a difference of 15 USD each. Both villages lose money and monkeys are still on the island, just like buying and selling land at virtual fever.
> Investment is an activity based on a thorough analysis, promising the safety of capital and delivering satisfactory profits. Activities that do not meet that requirement are only speculative activities.