Business Success
Growing Profits = Business Success
Most business owners and investors aren't geniuses but rather average people who have achieved above-average success in one area of life - wealth.
Profits provide business people and investors with a feeling of success and accomplishment. This is because they realize that the primary reason they have amassed such wealth is that they rendered useful products and/or services to individuals or have picked up bargains overlooked by market participants and, in return, society has rewarded them with money. Therefore, acquisition of money is often linked with the definition of success. Money is not success in itself, however, but rather a form of success.
The primary difference between business owners and investors lies in the fact that investors do not directly provide something of value to society. Instead of providing the end product, investors usually provide the means by which the end product is derived - cash. According to "Rich Dad, Poor Dad" co-author, Robert Kiyosaki, another difference between investors and business owners is that investors primarily have their money (or that beloning to other people) work for them, while business owners have systems work for them.
The two fields are obviously interrelated and similar as well. For example, both business owners and investors benefit society directly through the payment of taxes. And the world's most famous investor and second-richest man alive, Warren Buffett, has been known to say, “I am a better investor because I am a businessman, and a better businessman because I am an investor.” Buffett's mentor and friend of thirty-years, Benjamin Graham, also said something along the same lines, “investing is most professional when it is most businesslike.”
When an investor buys or sells a stock, for example, nothing of (direct) value gets created in society. This is because the only person directly gaining benefit from the purchase/sale of the stock is the one who obtains a capital gain on it.
Investors in the stock and real estate markets are said to be suspected of playing a "zero-sum game" by some. This is because the stock market does not (in most cases) offer a “win-win” solution. One person's gain is usually someone else's loss.
The two fields are obviously interrelated and similar as well. For example, both business owners and investors benefit society directly through the payment of taxes. And the world's most famous investor and second-richest man alive, Warren Buffett, has been known to say, “I am a better investor because I am a businessman, and a better businessman because I am an investor.” Buffett's mentor and friend of thirty-years, Benjamin Graham, also said something along the same lines, “investing is most professional when it is most businesslike.”
When an investor buys or sells a stock, for example, nothing of (direct) value gets created in society. This is because the only person directly gaining benefit from the purchase/sale of the stock is the one who obtains a capital gain on it.
Investors in the stock and real estate markets are said to be suspected of playing a "zero-sum game" by some. This is because the stock market does not (in most cases) offer a “win-win” solution. One person's gain is usually someone else's loss.
posted by Raphael Blogger at
3:38 AM
