Long-Term Investments: Investing for the Long Game

Описание: Short & Simple Definition: Money or other assets a company holds for over a year to earn a return, rather than using them for daily business.

Your support helps me keep creating free videos. Please like, share, and subscribe to help this accounting knowledge reach more people.

Free Resources Here: https://tinyurl.com/AccountingWithIndy

Real-World Example: An airline company has extra cash. Instead of buying more planes, it buys a significant number of shares in a hotel chain, hoping their value will increase over the next several years. This is a long-term investment, separate from its main business of flying planes.

Deeper Dive: Long-term investments are a category of non-current assets that are acquired with the intent of holding them for more than one year. These are distinct from investments made for short-term gains. Examples include investments in the stock or bonds of other companies, real estate held for long-term appreciation, or even a company's own special funds. They reflect a company's strategy for generating future wealth and can be a significant part of its overall value.

Other terms:
Non-operating investments
Strategic investments

#longterminvestments
#investing
#accounting
#balance_sheet
#assets
#financialstatements
#financialanalysis
#stockmarket
#bonds
#investing101
#businessfinance