The function of Investing

On and off, there are fuzzy argument about the function of investing. How can investing contribute to life improvement except greedy people accumulating money? We know building cars can make life easier so that the makers deserve to prosperity. But investing is just buy and sell, what has been generated? Nothing! Even money is not generated because someone's gain is some others' loss.

This argument seems trivial in investors' mind as the goal of making something and selling it and making money can be simply shortened to buy something's stock and sell the stock and make money. No physical material is involved in the food chain. Isn't it better than building plant, hiring a number of employees, and managing them? We have to agree to it that capitalism is maximizing capacity. No surprise that investors are "greedy".

Is it really sound surfacially? Probably not. Investing is catalyst to physical manufacturing. Capital accumulation is a derived product. And many businesses in our daily life don't create metarialized products, for example, the sporting business, there is nothing built when you are watching players scoring on the field and nothing is really changing whether you miss one game or two. But the entertainment business is very important in our daily life. Likewise, investing or not doesn't gaurantee that the business to be invested is on the right track. But it acts as a check for all in the business to be aware of how they are doing. Good businesses are deserved to be financially sound. Good investing is deserved to be financially rewarding too.

Are investors greedy? Yes and no, because the goal of investing is accumulating capital. This is the no part. On the other hand, there are always permutations on normal business model. Players would out compete other by drugs. These criminal acts are certainly greedy. Same applied to investing world. Crossline investing is out of greedy.

Happy investing!