strategic-investment

Vocabulary Word

Definition

'Strategic Investment' refers to making a financial commitment, like buying shares or properties, that supports a long-term goal or plan. It's like using your savings to buy a house rather than a car because it will increase in value more.

Examples in Different Contexts

In corporate finance, strategic investment refers to allocating capital in a way that aligns with the company's long-term growth objectives, such as investing in new technology or markets. A CFO might say, 'Our strategic investment in renewable energy technologies underscores our commitment to sustainable growth.'

Practice Scenarios

Academics

Scenario:

As part of our new strategic plan, we're considering improving our research facilities and engaging highly reputable faculty members.

Response:

I agree. Strategic investment in our faculty and research facilities will greatly benefit the university.

Public-Policy

Scenario:

Enhancing the quality of our healthcare system has been identified as a key priority in the new budget plan.

Response:

That's a good plan. Making strategic investments in healthcare will surely ensure a higher quality of life for our citizens.