To invest correctly is to give resources to ideas/projects that are impactful and that will create huge value.
To invest time, money and effort in projects that will create value is the responsibility of owners of these resources. This is the lesson I've learn from the Introduction to Finance course.
As a business owner, allocate resources (capital) to ideas/projects that will create value. Do not allocate resources to ideas that destroy value.
As an investor, invest (i.e. allocate capital) in businesses (ideas/projects) that create lasting value. Do not allocate resources to businesses that destroy value
Finance is a mindset that allows us to value ideas/projects.
I'm beginning to have some inkling of what Warren Buffett might be weighing when making capital allocation decisions.
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