Reasons Why Clever Business People Invest In Other Companies for Their Future
Why should business people and professionals look at investing in other people’s companies, not just in their own? I will give you lots of valuable, insightful things, making it more interesting.
I’m a hedge fund manager, so I’m a specialist in investing, but I’m not giving individual investment advice, obviously. I have to say this and let you know because I don’t know your individual circumstances.
So this is more generic advice on why, as I said, you should be investing yourself, whether you are a young professional or a business owner. And I’m not representing a brokerage or a fund management house or anything like that. So this is, there’s no conflict of interest with you whatsoever.
I’m going to break this into two parts. First of all, why aren’t people making the most out of investing in the kind of returns that they can get from other companies?
And secondly, well, what are some of the things that funds like mine, like Goldman Sachs, like that Warren Buffet likes, those things whether you are. As I said, whether you are somebody in their 30s or 20s who’s looking at just starting out and has only got, say, £5,000. Or whether you are somebody who’s got their own business and has got millions sitting in the bank account.
There seems to be a lot of dormant cash already in your account, or you plan to have it because you plan to grow, which is why you’re here. So we need to plan ahead and work out what you should be doing.
Do connect with me if you wish. That’s just me showing off about my background, and that’s why I thought, so you don’t think I’m totally arrogant and unapproachable, I took a picture of my alter ego, Apu, just to make it a bit more realistic of what I’m really like.
As I said, I’m a hedge fund manager, I’ve also written about investing, and that’s the insights I’m going to share with you, both as a practitioner and as somebody who’s written about it.
I’ve written about it, including in the FT, for about the last 20-odd years. So there’s a lot of experience to share with you. Also, from my programs, I want to share with you.
As I said, I’ve got no conflict with you because we don’t deal with retail clients, so that’s simple. But I want retail clients to know what we know about investing because a lot more regular people, whether they’re professionals or business owners, leave it too often and pay fat fees to fund managers, or at least don’t even know what questions to ask them. Or, you spend their lives working incredibly hard in your businesses professions and don’t have your money working hard for you.
So you bust a gut making 100K a year or 50K a year, or I don’t know, maybe even bust a gut making a million a year, but the money just sits there, whereas that money could be earning more than you’re doing in your salary, and that’s the point of it, okay?
So let’s focus on what I’m going to be talking about in particular, which is, well, how do I get my money working harder for me if I don’t know where to invest, and how to invest? And I’m going to focus on the public markets.
Why? Well, because at the click of a keyboard button, you can exit, but we need to know, “Well, how do I pick stocks?” That’s just the last six months.
Some people have been banging their heads because they’ve picked the wrong thing when the market is at an all-time high. Others have banged their heads because they didn’t do anything about it at all at any point. Those are the problems we’re going to try and resolve.
How do you know what to do? Where to put that capital and be independent about it and say, “Well, actually, you don’t have to go to a particular fund manager or a particular broker or particular IFA. You should at least have some knowledge of that because it’s like I said, you’ve spent your life earning that money, that passive income should be earning a dual income. You’re basically cloning yourself. That’s the point of it. And the way I want you to look at it is this.
Whether, as I said, it’s 5,000 you’ve got or five million, when you invest in a public company, so we’re not talking private companies, we’re not talking about the risk of your money being locked up. We’re talking about public companies, the names you’ve heard of.
I want you to think of it like this. It’s like hiring somebody in your business. If you’re hiring somebody in your business, you want to look at about 10,000 CVs; I would have thought. You want to look at as many CVs as possible because when you invest in a company, a listed company, a public company, you’re asking them to manage your money.
To make your return, either because you’re in your 30s or 20s, you want to get rich when you’re older, or you’re retired, and you want that money to give you a comfortable retirement. They are essentially managing your capital. If they’re managing your capital, they better be the best of the best in the world.
How do you make sure they’re the best of the best? Well, you look at many CVs; in other words, you look at a lot of companies. That sounds like you’re going to spend the rest of your life doing that. But that sounds complicated.
So we need to find a more straightforward way of doing it. Thankfully, there are so many free tools on the internet to be able to do that, but first of all, you need to know, “Well, how do I do that? Where do I begin?” And like I said, it might not be that you’ve got the capital today. It’s the fact that you will have the capital.