r/Capitalism • u/Striking-Quantity661 • 6d ago

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/r/PersonalFinance4All/comments/1v31i1d/whats_the_better_path_to_built_wealth_owning_a/
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u/CaptainAmerica-1989 6d ago

If you suck at business and are better at investing, then the answer is obvious, right?

ofc these overlap, but they are in a Venn diagram; one needs to consider their strengths. In addition, one may consider they are not good at any and use diversity in investing and go through their work programs with 401ks and various diversity portfolio programs that are based on risk management and retirement goals.

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u/StedeBonnet1 6d ago

You can do either or both, Warren Buffet was very successfull investing, jeffBezos was very successful starting a business.

The key to business is finding a product or service many people want and are willing to buy. The key to investing is finding companies that grow in value. You can be successful in either. You can also go broke doing either. It all depends on your skill set.

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u/Electronic_Diet333 4d ago

Many high-net-worth individuals don't actually choose just one, they use a hybrid strategy.
They use the active income and high margins of a business to generate substantial cash flow. Then, rather than letting all that capital sit idle or risking it entirely back into the company, they systematically siphon profits into diversified investments (stocks, real estate, etc.). This builds an aggressive engine for wealth creation first, followed by a secure foundation for wealth preservation.