Long-Term Investments on a Company’s Balance Sheet
A long-term investment is an account on the asset side of a company’s balance sheet for the company’s stocks, bonds, real estate, and other assets that the company intends to hold for more than a year.
The long-term investment account is distinct from short-term investments, which are likely to be sold in the near-to-medium term. Long-term investments are held for years and, in some cases, may never be sold.
Being a long-term investor means that you are willing to accept a certain amount of risk in pursuit of potentially higher rewards and can be patient for an extended period. It also suggests that you have enough capital to put away in financial assets for a long period until you need it.
Key Takeaways
- A long-term investment…
