Your Best Investment is Your Business
Your best investment is your business.
It’s very hard to replicate the returns you can generate by reinvesting in something you already understand and control.
Simple math: Let’s say you can grow your profit (or EBITDA) by $100k in a given year.
Apply a 10x multiple (can vary widely by industry, company, etc. but let’s keep the math clean).
That’s $1M in incremental value and personal wealth.
From one year of focused execution.
Do that consistently over time, and the compounding effect is massive.
You’re not getting that in a brokerage or retirement account.
That doesn’t mean you ignore everything else.
It means you understand the role of everything else.
Your investment portfolio isn’t there to compete with your business.
It’s there to:
• Provide liquidity
• Create flexibility
• Reduce overall risk
• Improve tax efficiency
• Protect what you’ve built
When I see people get into trouble is when they take their eye off the one thing that’s working.
New ventures.
Side deals.
Random opportunities that “sound interesting.”
Instead of doubling down on the asset that is actually building the wealth.
Focus builds wealth.
Diversification protects it.