{"id":346,"date":"2021-08-03T23:55:00","date_gmt":"2021-08-03T15:55:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=346"},"modified":"2024-07-12T19:09:48","modified_gmt":"2024-07-12T11:09:48","slug":"business-owners","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/03\/business-owners\/","title":{"rendered":"Differences between business owners and stock Investors"},"content":{"rendered":"\n<p>What I want to emphasize is business owners is totally different from an investors.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/03\/business-owners\/#It_doesnt_surprise_me_that_most_people_disagree_with_me\" >It doesn\u2019t surprise me that most people disagree with me<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/03\/business-owners\/#Business_owners_focus_on_running_companies\" >Business owners focus on running companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/03\/business-owners\/#Business_owners_and_stock_investors_are_different\" >Business owners and stock investors are different<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/03\/business-owners\/#Different_benchmarks\" >Different benchmarks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/03\/business-owners\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-medium-font-size wp-block-heading\"><span class=\"ez-toc-section\" id=\"It_doesnt_surprise_me_that_most_people_disagree_with_me\"><\/span><strong>It doesn\u2019t surprise me that most people disagree with me<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>I wrote a blog post a few days ago, which sparked different opinions from many people. But the result was not beyond my expectation. Most people&#8217;s opinions were at odds with me. It can be seen that my decision to write this article was right, and I am more convinced that my article&#8217;s views and years of observation are correct. correct.  Readers can refer to my article &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/02\/why-the-successful-skills-needed-for-stock-investment-is-opposite-of-successful-workplace-skills\/\">Workplace skills doesn&#8217;t help much in investment?<\/a>&#8221; Here, I will reorganize my original reply and my opinion as follow.<\/p>\n\n\n\n<h2 class=\"has-medium-font-size wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_owners_focus_on_running_companies\"><\/span><strong>Business owners focus on running companies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If it is the owner or major shareholder of a large-scale company or a listed company (hereinafter referred to as the business owner, we do not mean a salaried manager), the accumulation of wealth of such people will be very successful. why?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>I always think that running a business is more difficult than investing in stocks, because running a business has to face too many challenges; the advantage is that you can control your own destiny. This is the biggest difference from simply investing in stocks, and of course the achievements are also great, much more.<\/li>\n\n\n\n<li>For the business owners of enterprises above a certain scale, the company is all they have, and all their wealth and mental energy investment; and as long as they don\u2019t go bankrupt, they must be long-term investment\u2500\u2500\u2500once they survive or succeed in listing, the return rate will be very high.<\/li>\n\n\n\n<li>Under normal circumstances, most of the wealth of business owners who operate enterprises above a certain scale will only bet on their own enterprises. In addition to the fact that it is not easy to raise funds when the company is first established, it is also an expression of determination because there is only in this way can it succeed. In addition to business operations, from another perspective, they are of course also investing, and only invest in their own companies, or even long-term investments. These characteristics (concentration, long-term, ability circle) add up, resulting in a normal investment rate will be very high.<\/li>\n\n\n\n<li>I have a blog article called &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/06\/zero-to-one\/\">Zero to One<\/a>&#8220;, <a href=\"https:\/\/www.amazon.com\/Zero-One-Notes-Startups-Future\/dp\/0804139296\" target=\"_blank\" rel=\"noreferrer noopener\">this book<\/a> mentioned that the investment rate of venture capital is a power series. This is the reason.<\/li>\n\n\n\n<li>According to a survey of American wealthy people published by Forbes magazine in April 2021, among their sources of wealth, about 3\/4 of them set up companies, while investment accounts for about 1\/4. None of the 100 richest people is a fund manager.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"has-medium-font-size wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_owners_and_stock_investors_are_different\"><\/span><strong>Business owners and stock investors are different<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>However, there are still many differences between the owners of large-scale companies or listed companies (business owners) and stock market investors who seek to get rich in the stock market:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><\/li>\n\n\n\n<li><\/li>\n\n\n\n<li><\/li>\n\n\n\n<li>The footing is different: a business owner will definitely not use most of his wealth to invest in others, which is impossible.<\/li>\n\n\n\n<li>The entry threshold for investing in the stock market is very low: basically, most people are qualified and have the ability to enter (of course, it does not mean that they will succeed. Everyone has the opportunity to make a small profit, and it is not easy to be successful). However, operating a company is different. There are very few successful business owners, as evidenced by the fact that there are not many successful listed business owners in our society.<\/li>\n\n\n\n<li>The initial mentality is different: most stock market investors invest in their spare time at the beginning, and not many will invest full-time at the beginning. However, business owners generally put all their energy into running a company, and there is no such thing as a part-time job.<\/li>\n\n\n\n<li>The chances of operating a business to survive and make money are very low. According to official statistics from Taiwan\u2019s Ministry of Economic Affairs, only 10% of newly established companies can survive a year, and only 1% of companies can survive 5 years. In other words, the death rate is as high as 99%. The statistical results of the United States are also very close to this rate. Please note that this is not a bankruptcy, and it is a statistical value for all companies, large and small. It&#8217;s conceivable how low the chances of being listed in the market will be many years later. But if investing in the stock market can survive, the chances of making money are of course much higher (how much money you make is another matter). In short, business is good or bad, unless you can go public (the probability is very low), otherwise you can&#8217;t make a lot of money. Business owners who can successfully go public, of course, make far more money than ordinary stock market investors.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"192\" height=\"146\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/09\/mohamed_hassan-1600x1200-1.jpg\" alt=\"business owner\" class=\"wp-image-14067\"\/><figcaption class=\"wp-element-caption\">credit: mohamed hassan<\/figcaption><\/figure>\n\n\n\n<h2 class=\"has-medium-font-size wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_benchmarks\"><\/span><strong>Different benchmarks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In short, the investments of business operators and non-business operators cannot be compared on the same benchmark. This is not necessary, because these are two things.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-363b243e-6c12-4245-ac6f-6ad6e4c5766b\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/02\/why-the-successful-skills-needed-for-stock-investment-is-opposite-of-successful-workplace-skills\/\">Workplace skills doesn&#8217;t help much in investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/07\/why-successful-manager-usually-not-a-good-investor\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why successful manager usually not a good investor?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/18\/companies-they-serve\/\" target=\"_blank\" rel=\"noreferrer noopener\">Should investors buy stocks in the companies they serve?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/03\/insider-institution\/\" target=\"_blank\" rel=\"noreferrer noopener\">Changes in company insider and institution shareholding ratio<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/03\/business-owners\/\" target=\"_blank\" rel=\"noreferrer noopener\">Differences between business Owners and stock Investors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/25\/why-people-with-high-iq-prone-invest-failed\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why people with high IQ prone invest failed<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/14\/too-high-iq-is-not-useful-in-investment-but-will-hinder\/\" target=\"_blank\" rel=\"noreferrer noopener\">Too high IQ is not useful in investment, but will hinder<\/a>&#8220;<\/li>\n\n\n\n<li> &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/03\/insider-institution\/\" target=\"_blank\" rel=\"noreferrer noopener\">Changes in company insider and institution shareholding ratio<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Differences between business owners and stock Investors, I wrote a blog post a few days ago, which sparked different opinions from many people. But the result was not beyond my expectation. Most people&#8217;s opinions were at odds with me. <\/p>\n","protected":false},"author":1,"featured_media":14067,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[91,392,89,84,83,85],"tags":[],"class_list":["post-346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entrepreneur","category-circle-of-competence","category-enterprise-venture","category-private-equity","category-startup","category-venture-capital"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=346"}],"version-history":[{"count":28,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/346\/revisions"}],"predecessor-version":[{"id":20932,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/346\/revisions\/20932"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/14067"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}