[[Actuarial Notes Wiki|Wiki]] / [[Actuarial Techniques]] / ==Investment== > **Investment** is the growth of [[Capital|capital]]. The goal of investment is to maximize returns (growth of capital) while minimizing risk over a period of time. Accurate [[valuation]] of assets is central to this goal. ## Determining Value ==Valuation== is the process of determining the value, or price of an asset. There are two broad approaches to valuation, which assess value over different time scales. | Approach | Description | | ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | [[Fundamental Analysis]] | Value assets over a long time period based on the future value the assets will create by delivering goods and services, usually by [[Discounted Cash Flow (DCF)]] analysis. | | [[Technical Analysis]] | Value assets over a short time period, like weeks, days or seconds, based on changes in price from new information. | ## Further Reading 1. The Theory of Investment Value - Williams 2. [[A Random Walk Down Wall Street (Malkiel - 1973)]]