What does investing really mean?

"Is it still worth investing at my age?

It's already far too late! I don't have enough money to think about it ..."

We encounter such statements and questions every day. They make us realize that the terms “investment” and “investing” are misunderstood in our society. So let's clear up the misconception once and for all and illustrate the true meaning. Let's start with the origin of the term.

The origin of the word “investment” lies in Latin: investire means “to clothe” or “to wrap”. This already implies that something is embedded, incorporated and charged with meaning.

The English term investment was later coined in the economic context of the 17th century. Initially in connection with overseas trade and the first large trading companies. Capital was not simply spent, but used in a targeted manner to create value and hedge risks.

Adam Smith, the forefather of modern economics, still spoke of “capital employment” in The Wealth of Nations in 1776, not explicitly of “investment”. It was not until the 19th century that the term also became established as specialist economic terminology. A true investor thinks long-term, often in decades, not quarters. This principle can be found, for example, in old family assets, in foundations or in the intelligent construction of real asset portfolios. For centuries, investment has meant carefully deploying capital where it protects, works and is preserved.

An investment is therefore not something you just do on the side with the sole aim of achieving high returns. It has to do with responsibility towards yourself, your family and often also future generations. History has shown this time and again: in times of monetary devaluation, such as in the Weimar Republic or during inflation-plagued phases, people fled into real assets such as gold, real estate, art or foreign tangible assets. They invested not to gain, but to avoid losing. Investment was a protective shield against the loss of purchasing power.

The accumulation of wealth also never followed the “get rich quick” principle. Anyone who invested in a company did so with a view to productivity, innovation and profits. Investing meant pooling time, knowledge and capital to create long-term value. And last but not least, an investment was always an act of safekeeping: monasteries, noble families and merchant families invested their assets in tangible assets to maintain influence, independence and stability.

Investing therefore means that we exchange something, usually our working time in the form of money, for a real, tangible asset.

But what is an asset in this context? A real asset is something that lasts, is sustainable and exists independently of third parties.

Not a promise, but substance.

Not a hope, but a ownership.

An asset is something you have.

Claims are something you hope to get.

An ETF, for example, is nothing more than a claim against a company or a financial construct. Even a property is not automatically an asset. If it is encumbered by debt or is constantly eating up money, it is primarily a liability and not a security.

What is real wealth?

Genuine assets:

• is tangible, stable and not dependent on third parties

• has an intrinsic, firmly anchored value

• protects against inflation, default and deception

Gold is a classic example. Aristotle already developed a theory of fair trade and recognized three basic functions in money: It acts as a measure of value, as a means of exchange and as a store of value. It is precisely the latter that distinguishes physical gold, for example, from fiat money today. Gold is limited, cannot be multiplied at will and is recognized worldwide, thus fulfilling exactly what Aristotle described as the “natural” function of money. This is precisely why it has been part of our product portfolio for years.

Investments follow three clear objectives

Anyone investing today should ask themselves whether they are really doing so or merely consuming, betting and speculating. The actual core of investments always lies in three clear objectives:

1. Protect assets from loss of purchasing power

2. Build up assets

3. Safeguard and protect assets

And one of these three goals applies to everyone without exception. Regardless of age, account balance or life situation. So let's get back to the questions and statements mentioned at the beginning about investing.

Am I not too old to invest?

This question is understandable, but not correct. After all, it becomes increasingly important to protect existing assets as we get older. Nobody knows how old they will be. This means that, in case of doubt, your own capital will have to last for decades. In this context, investing primarily means protecting what you have already earned. Against inflation. From state seizure. From the loss of control.

Do I have enough to invest?

This question also conceals a misunderstanding. Investing does not start at a certain amount. It's about making smart decisions with what you have. If you ask yourself whether you have enough to invest, you should ask yourself whether you can afford not to invest. Smaller assets are particularly at risk. They must be preserved and used efficiently. Even with manageable funds, assets can be built up and protected in a targeted manner.

Investing is not a privilege, but a necessity

Investments are not a luxury for the rich. They are an instrument for people who want to take responsibility. For their financial independence. For their quality of life. For their future.

And if it is not for their own future, then it can be a cornerstone for the future of their descendants. From an investment that finances your studies to a hedge against difficult economic times.

It is therefore worth rethinking the concept of investment. Not as a short-term pursuit of profit, but as a long-term protective shield for your own freedom.

Feel free to contact us by phone, WhatsApp or email and let's work out your concept together!

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