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Old July 30, 2003, 04:46 PM
Thomas Rice
 
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Default Re: The stock market - an addictive roller-coaster ride...

> Yes, the stock market can be exciting, but
> overall, I think it is a bit of a slower way
> to make money. If having your own business
> is like having a financial "car,"
> then investing is like taking a financial
> "bus."

I agree. I'd say running a business and investing in stocks are not really in the same category.

For the most part, running a business is an active pursuit, much like a job, that takes up much of your time. Investing in stocks, on the other hand, is more passive (unless you happen to be a day trader or do it for your job, of course).

So with that in mind I think you'd expect to earn more from running a business.

If you're a "value investor" or use "fundamental analysis" then running a business and investing in stocks are linked, because these people value stocks by trying to value the underlying business, rather than predicting where stock prices will be tomorrow.

And if you develop skills in valuing listed businesses, then these skills transfer well to running your business in terms of assessing the value of new projects and opportunities you can take on or leave.

Ok, I too will stop rambling now. :)

- Thomas.
 


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