We just discussed how many of the wealthiest people in the world have become so by owning businesses.
And that two of the wealthiest people in the world are Bill Gates and Warren Buffett. They both own businesses. And this is no coincidence.
Stock investing is really much the same as owning a business.
We also said that stock investing is the easiest way to own a business. So consider for a moment what it would take to start and run a business. We’ll contrast that to an investment in a business.
In order to own a business, you may need to have a store. This will involve a real estate purchase or lease and the complications and obligations that go along with it. You’ll need to make sure the store is opened on time and closed at the end of the day. The store will need to be kept clean and maintained.
But when you buy stock to invest in a business other people take care of all of that for you.
You will certainly need to attract customers. This is actually the most important aspect of owning a successful business. Otherwise, you will be going out of business.
But when you invest in a business, marketing and sales people take care of that for you.
And you will need to purchase a lot of inventory to start your business. Otherwise, you have nothing to sell to your customers – that is to say, if you can attract them in the first place.
But when you buy stock to invest in a business, that’s taken care of already.
I’m getting a headache just thinking about all of this – and there are many more things I haven’t even mentioned.
For instance, four out of five new businesses fail. That’s not very good odds if you ask me.
What if that happens to you and your business? How do you get out of all these obligations, liquidate all that inventory, and everything else you need to do to shut it down? How long is that going to take?
When you own a business this can take weeks, months, even years. To illustrate this point, it’s like the difference between trying to sell your house or selling a real estate stock that you own.
Selling your house can take weeks, months or years (how’s that working out for you these days?). Selling a real estate stock can be done in seconds. Some difference, yes?
Okay, so enough said about owning a business for now. We’re here to take the easier route – to buy stocks to invest in a business.
But I want you to remember one thing. You are now going into business when you invest. It’s easier than actually starting your business.
But you need the same mindset as a business owner.