The best way to make money is to create something that adds value. Investing $1 million in an oil company that drills a well producing $2 million worth of crude. Loaning $500 million to build a copper mine that throws off $100 million in yearly cash flow for the next twenty years.
At its root, investing is this basic. (At least in principal. The tricky part is identifying which oil wells and copper mines are likely to make money.) Anything that goes beyond such simple parameters pushes capital to the margins of productivity.
Source: http://oilprice.com/Finance/Economy/Exotic-investment-Vehicles-An-Unproductive-Abuse-of-Capital.html
By. Dave Forest
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