What is an Investment View
An investment view is an act of analyzing an underlying decision or decision-making process in the context of resources spent and potential gain. The investment view examines a project or business, taking into account the factors which make the investment attractive.
The investment view is the method in which the investor looks at an asset.
BREAKING DOWN Investment View
An investment view is the best way to ensure you make the best decisions for your household or business. Some investors may look for "value," which they determine by looking at a company's price-earnings ratio (P/E) compared to the industry norm, while others may seek a reliable, dividend-yielding stock like General Electric. Of course, as people age or experience other material changes in life, their investment view often changes.
Having a firm and clear investment view can help investors maximize profits by focusing their efforts on investments that they know and understand. At its core, a solid investment view will encompass general ideas, such as profit potential and risk tolerance, as well as more specific items like preferred industries and economic sectors.
The investment view differs from situation to situation but always keeps the investment objective as the basis of its analysis. The investment objective is the primary goal of the investment, and this goal will depend on many factors. The most common financial investment objectives are safety, income, and growth. These goals are often mutually exclusive, so the investor must choose one goal to use in forming their investment view.
Business decisions may have several different reasons for their building a brand or reducing potential entrants to the industry. However, when an investment view is taken, there will be a structured look at the cost-return relationship.
Conservative Investment Views
If safety is the underlying factor in your investment view, you may wish to make conservative investments. Such conservative investments include government-issued securities in stable economic systems, corporate bonds issued by large, stable companies, government Treasury bills (T-Bills), certificates of deposit (CD), or the fixed-income municipal and government bonds. The safest investments usually have the lowest rate of income return or yield.