How to Invest as a Business Owner

Nov 7, 2022

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Christopher Shea is the Chief Investment Officer at WealthSource Partners, a financial advisory firm dedicated to helping financial advisors thrive with business resources, innovative solutions, and ongoing support. Chris’s diverse career in the investment management industry includes security research, portfolio construction consulting, investment product development, and portfolio management. Before joining WealthSource, he was the Co-founder of CataMetrics Management, a firm focused on providing investment advisors with an integrated investment solution. He also served as the CIO of US Wealth Management and Vice President of Goldman Sachs. Chris holds a Bachelor of Arts degree in Economics from the University of Massachusetts Amherst in addition to a Chartered Financial Analyst designation.

Chris joins me today to offer advice on how business owners can invest. He shares his background in investment management and describes how he became the Chief Investment Officer of WealthSource. He discusses asset classes and why business owners need to invest differently from other kinds of investors. He also outlines his ideas on building a diverse portfolio tailored to a business owner’s unique needs and highlights why investing is all about patience.

“Good investing is about how you think about yourself, how you confront the world, and patience.” - Chris Shea

This week on the Financially Simple Experience:

Understanding company-specific risks and why business owners need to decentralize
Why publicly traded companies have lower company-specific risk
The Chartered Financial Analyst designation and how to earn it
Chris’s role and responsibilities as Chief Investment Officer at WealthSource
Why small business owners have high-risk businesses
Concentration risk and the value of setting aside cash reserves
Why business owners need to invest differently
Other asset classes to which business owners can diversify their holdings
Building a custom, diversified portfolio that will help small business owners de-risk and decentralize their businesses

Resources Mentioned:

Book: Gems from Warren Buffett: Wit and Wisdom from 34 Years of Letters to Shareholders by Mark Gavagan and Warren Buffet
Book: Think and Grow Rich by Napoleon Hill

Our Favorite Quotes:

“The lower the risk of a company, the higher the value.” - Justin Goodbread
“You need to have enough dry powder—cash reserves in your business and personal finance—to weather something like a COVID-19 pandemic.” - Justin Goodbread
“Everybody is different, but business owners possess a unique set of characteristics that, from an investment perspective, they would want to be mindful of.” - Chris Shea
“As we de-risk and decentralize ourselves through investing in various asset classes, we have to accept the notion that we’ll get boring returns; not all assets have to return at the highest possible number.” - Justin Goodbread

Connect with Chris Shea:

About The Financially Simple Podcast If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.

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Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”).

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