Invest Like a Business Owner
Business ownership has been and continues to be a great source of wealth. Real estate has certainly had its successes, but businesses have generated dramatically greater wealth. If we think about the most wealthy people in history, they have all been business owners.
The stock market continues to be a great medium for ordinary people to become owners of highly profitable businesses. However, the financial media has caused many to fixate on the changes in the daily valuation of those businesses, rather than the long-term profits available to us as owners.
Predictions Are Unreliable – Use Trends to Make Adjustments
One of the most popular activities in the financial world is prediction. However, prediction fails us in one of two ways. Many predictions are simply flat-out wrong. Other predictions are fairly accurate but fail to account for how the market will react to those future conditions.
Trends are a much more effective way to make adjustments. Trends are simply patterns of strength in global markets. Rather than trying to guess where things are going, we are early adopters. This allows us to put money where effective investors are placing resources.
Short-Term Money (1-3 Years) Belongs in Bonds or Cash
The money you will be using in the next 1-3 years should be in bonds or cash. Markets do go through periods of volatility with big selloffs. As a business owner, you want to be sure that you have the cash and resources to get through those times without selling your businesses. If you have a profitable business and the value drops due to the overall economic environment, does it really make sense to sell? Of course, you need to have the resources to get you through those rough times without having to liquidate your ownership.
We want to help you find success as a business owner!