--- title: "Meaning & Key Takeaway of: I have never been able to understand on…" description: "\"“I have never been able to understand on what theory the original investment of money can be charged against a business. Those men in business who call..." image: "https://sms4smile.com/quotes/i/e4b/henry-ford-492_business_i-have-never-been-able-to-understand-on_3072476.jpg" --- # I have never been able to understand on what theory the… ![“I have never been able to understand on what theory the original investment of money can be charged against a business. Those men in business who call themselves financiers say that money is "worth" 6 per cent, or 5 per cent, or some other per cent, and that if a business has one hundred thousand…” quote by Henry Ford](https://sms4smile.com/quotes/i/e4b/henry-ford-492_business_i-have-never-been-able-to-understand-on_3072476.jpg) [Download](https://sms4smile.com/quotes/i/e4b/henry-ford-492_business_i-have-never-been-able-to-understand-on_3072476.jpg) [Open image](https://sms4smile.com/quotes/i/e4b/henry-ford-492_business_i-have-never-been-able-to-understand-on_3072476.jpg) > ““I have never been able to understand on what theory the original investment of money can be charged against a business. Those men in business who call themselves financiers say that money is "worth" 6 per cent, or 5 per cent, or some other per cent, and that if a business has one hundred thousand dollars invested in it, the man who made the investment is entitled to charge an interest payment on the money, because, if instead of putting that money into the business he had put it into a savings bank or into certain securities, he could have a certain fixed return. Therefore they say that a proper charge against the operating expenses of a business is the interest on this money. This idea is at the root of many business failures and most service failures. Money is not worth a particular amount. As money it is not worth anything, for it will do nothing of itself. The only use of money is to buy tools to work with or the product of tools. Therefore money is worth what it will help you to produce or buy and no more. If a man thinks that his money will earn 5 per cent, or 6 per cent, he ought to place it where he can get that return, but money placed in a business is not a charge on the business—or, rather, should not be. It ceases to be money and becomes, or should become, an engine of production, and it is therefore worth what it produces—and not a fixed sum according to some scale that has no bearing upon the particular business in which the money has been placed. Any return should come after it has produced, not before.”” [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Money’s value lies in its productive use, not in a fixed interest rate; treating it as a charge leads to failure. **In simple terms:** Money is valuable only when it creates goods or services. Key Takeaway Invest money where it generates production. Themes economics value investment Mood pragmatic analytical Type business financial When to use this quote - business planning - personal finance - entrepreneurial ventures Key Concepts capital theory productivity interest rates Questions to Reflect On - What productive outcomes can your capital achieve? - How do you measure the true return on investment? A Different Perspective Assuming a fixed return ignores market and business specifics. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Customer](https://sms4smile.com/quotes/about/customer/) [Investing](https://sms4smile.com/quotes/about/investing/) [Money](https://sms4smile.com/quotes/about/money/) ## Related quotes > [There are two fools in this world. One is the millionaire who thinks that by hoarding money he can somehow accumulate real power, and…](https://sms4smile.com/quotes/henry-ford/there-are-two-fools-in-this-world-one-is-the-millionaire-who-thinks/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [You can tell me anything you want to about investment, but you can't move no money of mine, so I know where all of…](https://sms4smile.com/quotes/steve-harvey/you-can-tell-me-anything-you-want-to-about-investment-but-you-can-t/) [Steve Harvey](https://sms4smile.com/quotes/author/steve-harvey/) > [“The investment of money is a banker's business.”](https://sms4smile.com/quotes/george-garr-henry/the-investment-of-money-is-a-banker-s-business/) George Garr Henry > [My dream investment would be one where I put the least amount of money in but make the most amount of profit.](https://sms4smile.com/quotes/touker-suleyman/my-dream-investment-would-be-one-where-i-put-the-least-amount-of/) [Touker Suleyman](https://sms4smile.com/quotes/author/touker-suleyman/) > [A savvy entrepreneur will not always look for investment money, first.](https://sms4smile.com/quotes/daymond-john/a-savvy-entrepreneur-will-not-always-look-for-investment-money-first/) [Daymond John](https://sms4smile.com/quotes/author/daymond-john/) > [We know that from the GI Bill after the Second World War, where Congress found that for every dollar we put in as taxpayers…](https://sms4smile.com/quotes/jill-stein/we-know-that-from-the-gi-bill-after-the-second-world-war-where/) [Jill Stein](https://sms4smile.com/quotes/author/jill-stein/) > [If your company matches your 401(k) contribution, then no matter what, contribute to your 401(k) first. You put in a dollar, they put in…](https://sms4smile.com/quotes/suze-orman/if-your-company-matches-your-401-k-contribution-then-no-matter-what/) [Suze Orman](https://sms4smile.com/quotes/author/suze-orman/) > [When your money is taken by a thief, you get nothing in return. When your money is taken through taxes to support needless bureaucrats,…](https://sms4smile.com/quotes/henry-hazlitt/when-your-money-is-taken-by-a-thief-you-get-nothing-in-return-when/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [For the best return on your money, pour your purse into your head.](https://sms4smile.com/quotes/benjamin-franklin/for-the-best-return-on-your-money-pour-your-purse-into-your-head/) [Benjamin Franklin](https://sms4smile.com/quotes/author/benjamin-franklin/) > [I don't have much but I take all I got and that's what I give, what I get in return is the money I…](https://sms4smile.com/quotes/wiz-khalifa/i-don-t-have-much-but-i-take-all-i-got-and-that-s-what-i-give-what-i/) [Wiz Khalifa](https://sms4smile.com/quotes/author/wiz-khalifa/) > [“(Other investors were in even more of a hurry. A South Korean firm wired us $5 million without first negotiating a deal or signing…](https://sms4smile.com/quotes/blake-masters/other-investors-were-in-even-more-of-a-hurry-a-south-korean-firm/) [Blake Masters](https://sms4smile.com/quotes/author/blake-masters/) > [I'm not so much interested in the return ON my money as I am in the return OF my money.](https://sms4smile.com/quotes/will-rogers/i-m-not-so-much-interested-in-the-return-on-my-money-as-i-am-in-the/) [Will Rogers](https://sms4smile.com/quotes/author/will-rogers/) > [In 2008, people who invested in hedge funds needed capital badly, but many of the funds would not return their money. However, I gave…](https://sms4smile.com/quotes/carl-icahn/in-2008-people-who-invested-in-hedge-funds-needed-capital-badly-but/) [Carl Icahn](https://sms4smile.com/quotes/author/carl-icahn/) > [I went into the business for the money, and the art grew out of it. If people are disillusioned by that remark, I can't…](https://sms4smile.com/quotes/charlie-chaplin/i-went-into-the-business-for-the-money-and-the-art-grew-out-of-it-if/) [Charlie Chaplin](https://sms4smile.com/quotes/author/charlie-chaplin/) > [A lot of people want to start a business, and they're like, 'I wanna start a business, give me some money to invest.' Where…](https://sms4smile.com/quotes/angela-yee/a-lot-of-people-want-to-start-a-business-and-they-re-like-i-wanna/) [Angela Yee](https://sms4smile.com/quotes/author/angela-yee/) ## More by Henry Ford > [Enthusiasm is the yeast that makes your hopes shine to the stars. Enthusiasm is the sparkle in your eyes, the swing in your gait.…](https://sms4smile.com/quotes/henry-ford/enthusiasm-is-the-yeast-that-makes-your-hopes-shine-to-the-stars/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [These men of many nations must be taught American ways, the English language, and the right way to live.](https://sms4smile.com/quotes/henry-ford/these-men-of-many-nations-must-be-taught-american-ways-the-english/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [People are as happy as they choose to be.](https://sms4smile.com/quotes/henry-ford/people-are-as-happy-as-they-choose-to-be/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [Those who stop marketing to save money are like those who stop a clock to save time.](https://sms4smile.com/quotes/henry-ford/those-who-stop-marketing-to-save-money-are-like-those-who-stop-a/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [Quality means doing it right when no one is looking.](https://sms4smile.com/quotes/henry-ford/quality-means-doing-it-right-when-no-one-is-looking/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [A man's college and university degrees mean nothing to me until I see what he is able to do with them.](https://sms4smile.com/quotes/henry-ford/a-man-s-college-and-university-degrees-mean-nothing-to-me-until-i-see/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [Don't find the fault, find the remedy](https://sms4smile.com/quotes/henry-ford/don-t-find-the-fault-find-the-remedy/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [A customer votes everyday with his dollar. Our job is make sure he votes for us.](https://sms4smile.com/quotes/henry-ford/a-customer-votes-everyday-with-his-dollar-our-job-is-make-sure-he/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [Our clothing, our food, our household furnishings - all could be much simpler than they now are and at the same time be better…](https://sms4smile.com/quotes/henry-ford/our-clothing-our-food-our-household-furnishings-all-could-be-much/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [The time is coming when man will be able to determine the length of his lifespan by controlling his diet.](https://sms4smile.com/quotes/henry-ford/the-time-is-coming-when-man-will-be-able-to-determine-the-length-of/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [You can't build a reputation on what you're going to do. It's simple, fantasize, rehearse, then go out into the world and DO IT!](https://sms4smile.com/quotes/henry-ford/you-can-t-build-a-reputation-on-what-you-re-going-to-do-it-s-simple/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [There is no man living that can not do more than he thinks he can.](https://sms4smile.com/quotes/henry-ford/there-is-no-man-living-that-can-not-do-more-than-he-thinks-he-can/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [Without doubt, Thomas Edison is my greatest contemporary.](https://sms4smile.com/quotes/henry-ford/without-doubt-thomas-edison-is-my-greatest-contemporary/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [As long as we look to legislation to cure poverty or to abolish special privilege we are going to see poverty and special privilege…](https://sms4smile.com/quotes/henry-ford/as-long-as-we-look-to-legislation-to-cure-poverty-or-to-abolish/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) > [The time will come when man will know even what is going on in the other planets and perhaps be able to visit them.](https://sms4smile.com/quotes/henry-ford/the-time-will-come-when-man-will-know-even-what-is-going-on-in-the/) [Henry Ford](https://sms4smile.com/quotes/author/henry-ford/) [Explore all 517 Henry Ford quotes ](https://sms4smile.com/quotes/author/henry-ford/) ## More Business quotes > [Companies with cultures that celebrate diverse opinions and encourage the exchange of ideas have an advantage when solving difficult problems. A company that doesn't…](https://sms4smile.com/quotes/doug-mcmillon/companies-with-cultures-that-celebrate-diverse-opinions-and-encourage/) [Doug McMillon](https://sms4smile.com/quotes/author/doug-mcmillon/) > [You can laugh at me, but I understand show business.](https://sms4smile.com/quotes/ksenia-sobchak/you-can-laugh-at-me-but-i-understand-show-business/) [Ksenia Sobchak](https://sms4smile.com/quotes/author/ksenia-sobchak/) > [“Start a business, not a startup”](https://sms4smile.com/quotes/anonymous/start-a-business-not-a-startup/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [“Take some books and read; that’s an immense help; and books are always good company if you have the right sort.”](https://sms4smile.com/quotes/louisa-may-alcott/take-some-books-and-read-that-s-an-immense-help-and-books-are-always/) [Louisa May Alcott](https://sms4smile.com/quotes/author/louisa-may-alcott/) > [I'm a business first and foremost so whatever my business is, it's separate from my personal. It's like whatever I do business wise, it's…](https://sms4smile.com/quotes/snoop-dogg/i-m-a-business-first-and-foremost-so-whatever-my-business-is-it-s/) [Snoop Dogg](https://sms4smile.com/quotes/author/snoop-dogg/) > [Many early-stage entrepreneurs make one simple mistake: Describing this 'big picture' in vague concepts and words.](https://sms4smile.com/quotes/sunil-nagaraj/many-early-stage-entrepreneurs-make-one-simple-mistake-describing/) [Sunil Nagaraj](https://sms4smile.com/quotes/author/sunil-nagaraj/) > [Nobody has a crystal ball, and part of evolving a business plan is to say, 'I might have said we're going left, but I…](https://sms4smile.com/quotes/ryan-kavanaugh/nobody-has-a-crystal-ball-and-part-of-evolving-a-business-plan-is-to/) [Ryan Kavanaugh](https://sms4smile.com/quotes/author/ryan-kavanaugh/) > [I think a business guy is different from an artist. They walk different paths. Artists create the best outputs when they're having fun. And…](https://sms4smile.com/quotes/g-dragon/i-think-a-business-guy-is-different-from-an-artist-they-walk/) [G-Dragon](https://sms4smile.com/quotes/author/g-dragon/) > [ “\[S\]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once,… ](https://sms4smile.com/quotes/nora-ephron/s-ometimes-when-you-are-a-food-person-the-possible-irrelevance-of/) [Nora Ephron](https://sms4smile.com/quotes/author/nora-ephron/) > [If you have a different mindset, you will have a different outcome: if you make different choices from your peers, your life will then…](https://sms4smile.com/quotes/jack-ma/if-you-have-a-different-mindset-you-will-have-a-different-outcome-if/) [Jack Ma](https://sms4smile.com/quotes/author/jack-ma/) > [“Some say the Earth is angry Because he wants no company; I say the Earth is angry Because he lives alone.”](https://sms4smile.com/quotes/n-k-jemisin/some-say-the-earth-is-angry-because-he-wants-no-company-i-say-the/) [N.K. Jemisin](https://sms4smile.com/quotes/author/n-k-jemisin/) > [ If the State does not acquire supremacy over \[vast private\] enterprises, it becomes their puppet, and they become the real State. ](https://sms4smile.com/quotes/bertrand-russell/if-the-state-does-not-acquire-supremacy-over-vast-private-enterprises/) [Bertrand Russell](https://sms4smile.com/quotes/author/bertrand-russell/) > [It's not just that families can't buy a home or start a business without some savings tucked away.](https://sms4smile.com/quotes/jim-cooper/it-s-not-just-that-families-can-t-buy-a-home-or-start-a-business/) [Jim Cooper](https://sms4smile.com/quotes/author/jim-cooper/) > [I'm not into business at all.](https://sms4smile.com/quotes/freddie-mercury/i-m-not-into-business-at-all/) [Freddie Mercury](https://sms4smile.com/quotes/author/freddie-mercury/) > [I've long believed one of the mainsprings of our own liberty has been the widespread ownership of property among our people and the expectation…](https://sms4smile.com/quotes/ronald-reagan/i-ve-long-believed-one-of-the-mainsprings-of-our-own-liberty-has-been/) [Ronald Reagan](https://sms4smile.com/quotes/author/ronald-reagan/) [Browse all 39,016 Business quotes ](https://sms4smile.com/quotes/about/business/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“I have never been able to understand on what theory the original investment of money can be charged against a business. Those men in business who call themselves financiers say that money is \"worth\" 6 per cent, or 5 per cent, or some other per cent, and that if a business has one hundred thousand dollars invested in it, the man who made the investment is entitled to charge an interest payment on the money, because, if instead of putting that money into the business he had put it into a savings bank or into certain securities, he could have a certain fixed return. Therefore they say that a proper charge against the operating expenses of a business is the interest on this money. This idea is at the root of many business failures and most service failures. Money is not worth a particular amount. As money it is not worth anything, for it will do nothing of itself. The only use of money is to buy tools to work with or the product of tools. Therefore money is worth what it will help you to produce or buy and no more. If a man thinks that his money will earn 5 per cent, or 6 per cent, he ought to place it where he can get that return, but money placed in a business is not a charge on the business—or, rather, should not be. It ceases to be money and becomes, or should become, an engine of production, and it is therefore worth what it produces—and not a fixed sum according to some scale that has no bearing upon the particular business in which the money has been placed. Any return should come after it has produced, not before.”", "creator": { "@type": "Person", "name": "Henry Ford" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/henry-ford/i-have-never-been-able-to-understand-on-what-theory-the-original/", "about": { "@type": "Thing", "name": "Business" }, "@id": "https://sms4smile.com/quotes/henry-ford/i-have-never-been-able-to-understand-on-what-theory-the-original/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/e4b/henry-ford-492_business_i-have-never-been-able-to-understand-on_3072476.jpg", "contentUrl": "https://sms4smile.com/quotes/i/e4b/henry-ford-492_business_i-have-never-been-able-to-understand-on_3072476.jpg", "url": "https://sms4smile.com/quotes/i/e4b/henry-ford-492_business_i-have-never-been-able-to-understand-on_3072476.jpg", "width": 1080, "height": 1080, "caption": "“I have never been able to understand on what theory the original investment of money can be charged against…” — Henry Ford", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Henry Ford", "item": "https://sms4smile.com/quotes/author/henry-ford/" }, { "@type": "ListItem", "position": 4, "name": "“I have never been able to...", "item": "https://sms4smile.com/quotes/henry-ford/i-have-never-been-able-to-understand-on-what-theory-the-original/" } ], "@id": "https://sms4smile.com/quotes/henry-ford/i-have-never-been-able-to-understand-on-what-theory-the-original/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```