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The main cause for the loss of money in investments is because investors exit their positions when their positions are at a loss. If they had just held on to their positions until the stock prices turn around, then they would never have any realized losses, unless the company goes bankrupt. Let's say you are playing with infinite capital. You can invest in any of the stocks in the market and hold them for as long as you want to. What's the chance of you losing money?

2007-09-28 06:31:55 · 9 answers · asked by lucstudent 3 in Business & Finance Investing

9 answers

If you had infinite money, there would be no reason to invest.

2007-09-28 06:35:23 · answer #1 · answered by Steve C 7 · 2 0

If you have infinite money, you have already lost it all. It is guaranteed.

Because, if you collected an infinite amount of money, then money would be an unlimited resource and valueless.

Money's value is predicated upon it's existence as a finite resource. Many governments have tried to print their way out of debt - with catastrophic consequences for the value of their money.

Now, if your premise is that if you never sell your investments, will you ever lose money in the long term? The answer is yes. Losing all your money is guaranteed, eventually.

Mankind's time on earth is also finite. Our financial institutions, even less so. Eventually, climate change, act of god, or the sun going nova, or something else will destroy our society. Your stock investments won't survive that.

Invest for 20 years, you will probably make money. Invest for 1,000,000 years, and you're broke, along with any record you ever owned something called 'stock'.

-->Adam

2007-09-28 07:02:29 · answer #2 · answered by great_and_mighty_adam_levine 4 · 0 0

In direct disagreement from what I have seen from some of the previous answers, my answer is simple.
Q) With infinite money to invest, can you possibly lose money? A) No matter the amount of money one person possesses, any time you walk with less than you had... You lost money. Period.
Long term investments (providing that they stay liquid) are a relatively safe bet. BUT... The real question here would be how long an investment would take to gain. 1 year? 10 years? 20 years? 50 years? There are several scenarios to consider after a colapse.

2007-09-28 07:01:28 · answer #3 · answered by pappysgotitgoinon 5 · 0 0

Assuming you stop investing at a certain point, Say, 2 million.

Even if you hang on to that for YEARS eventually you will want to sell, And if you don't thats just like losing that money anyways. If it's not in the bank, you haven't got it.

But yes, Stocks should be held onto for many years, not just a little while.

2007-09-28 06:36:20 · answer #4 · answered by Anonymous · 0 0

If i had infinite money and invested 10g's in every company. then a year latter withdrew all my cash i would make a net profit IF the market was on a rise, if the market is on a decline on the other hand i would lose money.

You should be able to easily find out if the market has made a profit or not check this site out -

http://money.cnn.com/data/us_markets/

Does this help to answer your question?

2007-09-29 01:02:51 · answer #5 · answered by npsf3000 1 · 0 0

Well, infinity is not actually a number. Money can always be measured in real numbers, therefore infinite capital is impossible. If it were possible, of course you could still lose money. Stocks don't always turn around.

2007-09-28 06:36:43 · answer #6 · answered by Jim C 3 · 1 0

If you have infinite money to invest why invest at all? Gaining purchasing power which is what money is, is not an objective. Find another hobby. You can afford it!

2007-09-28 06:47:10 · answer #7 · answered by Richard Jackel 3 · 0 0

The question makes no sense.

If you have an infinite amount of money, how can you tell if you're winning or losing? No matter what you do, you can't tell how much you have.

2007-09-28 06:35:39 · answer #8 · answered by Ralfcoder 7 · 0 0

CAN YOU SUBTRACT FORM INFINITE? NOPE

2007-09-28 06:35:08 · answer #9 · answered by SUPER WOMAN! 2 · 0 0

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