Investment Advice for Entrepreneurs
By: David Walker
Entrepreneurs are the trendsetters. They are the bold few who venture out alone with a dream and audacious goals. They are natural-born risk-takers.
Their grit, determination, and business acumen make natural investors. They know how to seize an opportunity at the right time, deal with uncertainty, and ride the wave to greater profits.
While most people shy away from new ventures, entrepreneurs thrive on them. They love to get their feet wet and learn to play the game. Mistakes don’t threaten them. They see all experience as a chance to learn and grow.
If you’re looking for a way to multiply your profits, stick around. Here are five types of investment strategies that are tailor-made for entrepreneurs.
Growth Stocks
Most people are sheepish to test out high priced to earnings growth stocks, but not entrepreneurs. They know the value of a company isn’t its price today, but a year or more from now. Picking up growth stocks can turn into lucrative investments if you have patience and you can stomach the volatility.
From small to established companies, growth stocks are a great way to learn investing. While growth stocks can be volatile, you’ll be learning as you go, which is an entrepreneur’s style anyway.
Invest in Your Passions
Entrepreneurs know the value of a good brand. Not only that, they are passionate about them, fanatical even. Given your interest in watching brands blossom, you’re sure to have a couple you’d like to invest in.
You may know a startup that’s destined to IPO and disrupt the market. Additionally, you may have a brand you’ve followed since you were a kid that you’d love to own stock in. Entrepreneurs can spot a good brand. Buy stock in some that fuel your passions.
Diversify, Diversify, Diversify
While you may have a handful of brands you believe in, it’s also a good idea to diversify your portfolio. An excellent way to diversify your portfolio is by buying a mix of stocks across a spectrum of sectors and market caps.
For the beginner investor, perhaps just buy some index funds. You can find index funds for the S&P 500, Russels 1,000 and 2,000. Want something more flashy? Invest in sector focused indexes, such as QQQ, which tracks the Nasdaq 100 Index. There are loads of options for you to choose from.
Compounded Wealth
If you’re young and hungry, time is on your side. Buying and holding a mixed portfolio of stocks can compound your wealth over time to help you retire in style.
Invest in Your Future
As an entrepreneur, you understand the importance of investing in your future. Start investing in yourself today. Written by David Walker, COO of Growthline Capital.
