Imagine you invested $100 into my company. Let's say my company specialized in doing absolutely nothing, as in, the company had a bank account and produced/sold nothing. In our little toy world where you always make money on investments, two weeks in I returned $150 to you (you've made $50).
This brings up questions like "where did that extra $50 come from", but maybe you get the point of the original comment now.
If that money is consumed as capital to further the goals of the business there has to be the possibility that nothing is available that can be returned.
This is the underlying principle of investment, that the money is being utilized by someone for potential economic gain.
If that money is just parked such that its always available for a return then it isn't really an investment.
marginalia_nu|3 years ago
reeboo|3 years ago
This brings up questions like "where did that extra $50 come from", but maybe you get the point of the original comment now.
locustous|3 years ago
This is the underlying principle of investment, that the money is being utilized by someone for potential economic gain.
If that money is just parked such that its always available for a return then it isn't really an investment.