Redefining Stock and Business Investment in a New Era

Mar 8, 2010
Sarah Briggs

For the last few decades, business investment has been perceived as a long-term commitment by some, a “get rich quick” exchange through buying and selling for others. Investment gradually morphed into an impersonal commitment, with blue chip stocks for security and investment portfolios spread across the spectrum of corporations and global enterprise.

For some investors, but, economic climate change may be heralding a new attitude towards investment, one defined by smaller goals and personal connection to the project involved. A new philosophy for personal investment may encourage local growth and entrepreneurial spirit while preserving the hallmarks of long-term investment portfolios.

Investing in Entrepreneurs

While established companies and brands are often the priority in stock investments, some investors may find personal satisfaction in seeking out new investment opportunities. While the risk of loss is greater, new companies and new concepts have the potential to grow into established, profitable choices.

A personal belief or interest in the investment project inspires others to place their capital in new companies whose products or business message appeals to them. With the rise of “stockholder’s rights”, including a push for stockholder votes on executives and salaries, feeling personally involved in the stock investment appeals to individuals seeking a connection between their investments and industry outcome.

Investing in Local Opportunities

Bringing investments into local communities usual involves out-of-town negotiations. The shift in economic climate, but, may make home investments appeal to individuals or financial pools interested in seeing real results from investment dollars.

Investing in local businesses and entrepreneurs holds appeal for investors who seek personal involvement in their portfolios. Financial success, when woven into the success of the community and local enterprise, gives investors a sense of connection and boost community revenue.

Investment “Safe Zones”

Some financial investments will remain staples in financial portfolios, whether handled professionally or personally. Mutual funds, CDs, and other traditional investment choices will continue to be “safe” sources for investing capital.

For investors seeking long-term risk and personal involvement, entrepreneurism and local investment are among the many choices that will draw investors who seek a different, more personal strategy for investing their capital. In an ever-changing climate of business, feeling a sense of connection with their investment choices may become nearly as vital as financial success.

Resources:

Dreman, David. Contrarian Investment Strategies – The Next Generation. Simon & Schuster, 1998.

Brill, Jack and Alan Reder. Investing from the Heart: The Guide to Socially Responsible Investments and Money Management. Three Rivers Press, 1993.