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[source](https://www.financialexpress.com/money/investment-opportunities-in-2021-and-key-watchouts-for-investors/2173786/)


Today many people are clear that you have to invest, saving is fine but only the investment multiplies the capital, but something happens that draws the attention of many and that is that investors are choosing to invest in companies that do not generate profitability, companies that are in growth and generate losses are receiving support from investors, we are going to analyze the reason for this.





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Decades ago it was normal for a company to be profitable before going public and for anyone to have the opportunity to buy its shares, it was unthinkable that a company would not be profitable if it wanted to attract investors because dividends are the great attraction When it comes to investing, but that changed today, the reality is that investors invest in companies that are not generating profits, on the contrary, they are companies that generate losses.

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The best examples of this are Amazon and Tesla companies that for years did not generate profitability, only generated losses, but investors put their money there because they believed in the project, understood it and saw that it had a future, usually for this situation to happen businesses should look interesting and successful in the long run.

So the business is investing, if you invest in a company and other investors arrive, the shares will rise, you do not need the company to be profitable, to generate any own profit, all you have to do is sell the shares you bought and you will earn money, For that other investors have to come after you, although this seems like a ponzi pyramid scheme in theory, in practice it is not, since the new money that comes in is used to develop the company and not to give it to investors.



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[source](https://researchleap.com/increasing-effectiveness-investment-management-introducing-corporate-governance-joint-stock-companies/)

So investors understand that today's losses will seem small in relation to the possible gains of tomorrow, not only investors because large investment funds usually allocate a percentage to invest in growing companies, this is called angel investors, that finance you while you consolidate as a company so the image of exponential growth that promises to achieve a powerful company and capable of generating surprising profits at some point in the future is something that attracts investors of all kinds.


<h1>Thank's for read</h1>

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