Small Trades Journal

[updated on 7/30/2014 with a different opinion.]

Inflation is the “general increase in prices and fall in the purchasing power of money” (1).  The basic reward of investing, as opposed to hoarding cash in a safe, is to earn returns that exceed the rate of inflation.

Another opinion

“The purpose of investing is not to simply optimise returns and make yourself rich.  The purpose is not to die poor” (2).

References

1.  Google search engine, 3/2/2013

2.  William Bernstein, Rational Expectations: Asset Allocation for Investing Adults.   2014.

This entry was posted on Saturday, March 2nd, 2013 at 10:09 am and is filed under do-it-yourself investing, Personal finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.