Invest in successful businesses if you can't start one for yourself

Everyone think of starting so and so company or business in a particular sector, but because of capital or time constraint many can't fulfill that dream.

In a survey conducted by me on social media, people said that they would start biz in oil and gas sector, hotels, restaurant, hospitality, property, FMCG, NBFC, recruitment agency, logistics, agriculture and many more. People chose this sector because they had knowledge about those sectors, and they understand this business.

For example, starting a company like Amazon, Facebook, Google, ITC, Asian Paints, Reliance, etc and establishing the brand will take time and efforts. It's not that you can't start, you can start but few people lose hopes of starting one. For those people who have their own businesses or are working professional can simply take part in growth of the emerging companies by buying shares of the listed company.

Instead of opening new company or business which require resources, we can invest in this company stock that are already in that business and that are doing well. You can pick best stock of the company in that business and stay invested as long as you are interested in that business. By investing in shares we would be the proportionate shareholder of the profit or loss that company make in the long run and the company's CEO, CFO, MD and other employees are working for your business to grow.

Another point to look is the management. As we won't be able to run that business, so whatever profit or loss that business generates depends on management decision. Picking companies with good management is the key.

Now as you don't evaluate your business daily, so it's better to avoid looking at share price daily as its speculative move throughout the day. At the end price of the stock will reflect its earnings in the long run. Drawdown is part of all business, so here also one should exit from a business at drawdown in the initial stage and at the end one can exit from the investment with your pre-defined rules.