Question
Is it better to build my own business or invest in the stock market?
Response
The transcripts lean toward building your own business, though a few guests also endorse investing. Several billionaires said owning a business is how real wealth gets made. One London guest said you don't get rich by working for someone else or by being paid a salary, and that you get rich by building a business and selling it. He also said investors take their chances, while a businessman depends on his own abilities and skills. A Palm Beach guest said that owning your own company, rather than being a salaried employee, is how you avoid working for the bank. Other guests pointed to the stock market: a Wall Street bond trader told young people to invest early and buy the S&P 500, and another guest said kids should be invested in the stock market and that the richest people put their money into equity in their own companies. A Boston guest said the richest people put money into index funds, and a billionaire woman said wealthy people keep most of their money in marketable securities, with some in real estate and alternative investments. So the consensus is that owning a business builds wealth most directly, while index-fund investing is the common recommendation for the money you keep and grow.
Sources & references
- 01Asking London Billionaires How They Got Rich!3:29(opens on YouTube in a new tab)
You don't get rich by working for someone else. You don't get rich by being paid a salary. You don't get rich by starting your own business. You slave your guts out night and day meeting cash flow crisis. You get rich by selling your business.
- 02Asking London Billionaires How They Got Rich!10:25(opens on YouTube in a new tab)
Is it better to be a business owner or an investor in today's world? >> Oh, it's better to be a businessman. Why? Investors, you take your chances. As a businessman, you're dependent on your own abilities, your own skills, your own expertise.
- 03Asking Logan Paul For His Best Business Advice!5:25(opens on YouTube in a new tab)
Invest early, invest confidently, don't speculate. Buy the S&P 500. For the last 100 years it's returned 10% a year on average.
- 04Asking Billionaires How They Got RICH! (Boston)11:32(opens on YouTube in a new tab)
I think the smartest people know what they know and know what they don't know. Put it in an index fund.
- 05Asking Billionaire Women How They Got RICH!13:26(opens on YouTube in a new tab)
80% of their money typically is in marketable securities. So stocks, bonds, mutual funds, ETF, things like that.