An entrepreneur's primary business is where real wealth gets built, not in side investments they don't understand. Chasing high-return shortcuts with business earnings is a mistake. Keep external investments boring: they should protect capital and reduce risk, nothing more.
Why do entrepreneurs invest in things that they don't truly understand? This is one of the biggest mistakes I see people making is we take our hard-earned money from our business where we're an expert, where we have a competitive advantage, and then we redeploy our capital into risky bets that are either in industries that we don't have deep expertise in or are in complicated financial products that we don't truly understand. And I think this ties back to like everyone's ultimate desire for get-rich-quick magic bullet. We think if we just find this really complicated investment that'll somehow 10x in a very short amount of time. Reality is there are no shortcuts and your best investment is the thing where you have a deep knowledge, expertise, and competitive advantage. That's your primary business. So your primary business is your tool for wealth creation and your investment should only be to create safety and in order to hedge that risk to create ultimate freedom. So don't take money from your primary business and then risk it twice.
