Are you thinking on the best investments to buy this 2012? Do you want to know the best place to invest your money for big returns? Are you interested in knowing the best investments for 2012? Then read on. Right from the onset of investing, there has been an argument as to which investment opportunity yields the best returns. So in this article, I will be critically analyzing and making my opinion known on what I consider the best investments for 2012 and even beyond. Now there are so many investment products craving for attention. Some of the most popular are:
- Stocks
- High yield investments
- Bonds
- Mutual Funds
- Hedge Funds
- Real Estate
- Insurance
- Commodities
- Savings
- Collectibles
- Precious Metals
Now all the investment products listed above really yield good returns on investment. For instance, stocks can yield a return of about 25% – 1000%, depending on the time frame and risk involved; same can be achieved with real estate. But of all the investment products mentioned above, which do you think is the best investment. You are free to hold your own opinion but what if I reveal an investment product that outperforms all other investments? Will you be willing to invest in it? Well, whether you will invest or not, I am going to reveal it.
What is the Best Investment for 2011 with Big Returns?
Now in my own honest opinion; the best investment you can invest in is not stocks, neither is it real estate. The best investment opportunity with the highest returns is “BUSINESS.” Yes! Building a business is definitely the best investment opportunity ever; with the highest returns on investments.
“Wealth is only a benefit of the game of money. If you win, the money will be there.” – J. Paul Getty
Building a business is the exact way the ultra rich of this world made their money. People such as Bill Gates, Anita Roddick, Jacob Astor, John D. Rockefeller, The Rothschild, Steve Jobs, Warren Buffett, Larry Ellison and so many others became extremely rich simply by building a business. Building a Business was how Aliko Dangote and Oprah Winfrey became the richest black man and richest black woman in the world respectively.
“The richest people in the world build networks; everyone else is trained to look for work.” – Rich Dad
Do you know that playing the stock market did not make Warren Buffet and George Soros Rich? Building Berkshire Hathaway made Warren Buffett rich while building the Soros Quantum fund made George Soros rich. Do you know that building Facebook alone made Mark Zuckerberg the youngest self made billionaire in the world within a space of five years?
“There are fast ideas and slow ideas, just as there are fast trains and slow trains. When it comes to money, most people are on the slow train looking out the window watching the fast train pass them by. If you want to become rich quickly, your plan must include fast ideas.” – Rich Dad
Now what makes “BUSINESS” the best investment opportunity? The following are the reasons why I chose business building as the best investment opportunity with the highest returns on investment.
Why Building a Business is the best investment for 2011 and beyond
1. Low initial investment capital
The initial capital for starting a business can be quite low with respect to its profit potential. You can start a business with anything you’ve got. There is no imposed or minimum small business startup requirement.
“Start small and dream big.” – Rich Dad
As a matter of fact, Bill Gates and Michael Dell started their business in the dormitory of their school. Google and Yahoo were also started in the Dorm while Amazon and Apple were started in the garage. I started my first business right from home. So number one goodie about building a business is the low entry capital. With $100, $1,000, $10,000 or even nothing; you can start building your own multi-million dollar company from scratch.
“I started a business with nothing and my determination to make that business succeed made me drop out of college. Everybody thought I was crazy but the truth is; they can’t see what I see. I don’t need to convince them that I am on the right track, my bank account will.” – Ajaero Tony Martins
2. Moderate Risk involved
“Seek advice on risk from the wealthy who still take risks, not friends who dare nothing more than a football bet.” – J. Paul Getty
Risk is a part of every investment. In fact, there’s nothing like a risk free investment and business also has its own fair share of risk. But if you really know what you are doing, the risk involved with building a business will be very low.
“Risk comes from not knowing what you are doing.” – Warren Buffett
3. Impressive risk to reward ratio
Despite the fact that the risk is moderately low, the reward is very high. When compared to other investment products, the risk to reward ratio is quite impressive and that’s why I call building a business the best investment with the highest returns on investment. How about a risk to reward ratio of 1: infinity? Well, with business; that figure is a reality.
4. Absolute control of investment
Do you know why stocks and mutual funds aren’t my best investment? Well, the reason is because stocks and mutual funds give you little control over them. You can’t influence its performance; you can’t control the cash flow of the company you invested in, you can’t influence management decisions and you have no say in its business operations. All you can only do; is play by its rules.
“The more a person seeks security, the more that person gives up control over his life.” – Rich Dad
Now the downside to not having maximum control over your investments is that your investment can be manipulated and you can take a fall anytime. Smart investors know that with more control comes minimal risk; meaning the more control you have over your investments, the more you strengthen your financial fortress.
“In order to be a player on the fast track, you will need to have a plan on how to gain more and more control. On the fast track of business and investing, it’s control more than money that counts.” – Rich Dad
5. Building a business is challenging, exciting and involving
“A business has to be involving, it has to be fun and it has to exercise your creative instincts.” – Richard Branson
“The biggest challenge you have is to challenge your own self doubt and your laziness. It is your self doubt and your laziness that defines and limit who you are.” – Rich Dad
Building a business, though challenging is also exciting and involving. Most people invest their time and expertise building someone else’s business in return for a paycheck. They avoid investing in their own business because they are afraid of the business challenges involved.
“And obviously from our own personal point of view, the principal challenge is a personal challenge.” – Richard Branson
“Without the element of uncertainty, the bringing off of even, the greatest business triumph would be dull, routine and eminently unsatisfying.” – J. Paul Getty
One thing I love about business is that it keeps you on your toes; exercises your creative instincts and make you financially smarter and stronger.
“Once you have made it, you will understand that any business is limited in the challenges it offers. You will want and need other games to play, so you will look for other ventures to hold your interest.” – J. Paul Getty
6. Infinite returns on investments
“Being first is more important to me. I have so much money. Whatever money is, it’s just a method of keeping score now. I mean, I certainly don’t need more money.” – Larry Ellison
Lastly, the most important reason that makes building a business the best investment opportunity is the returns on investments. One day, at a gathering with friends, a friend of mine openly challenged me saying “Tony, you claim to be a smart entrepreneur and investor. Now tell me, what was your return on investment in the last six months? I replied telling him I don’t know.”
This friend of mine laughed loudly and told me that I was nothing but a dreamer. He carefully explained to everyone in that gathering how he made a 79% return on investments in the last six months by playing the stock market. I was hurt inside but I kept my cool. But why didn’t I reveal my returns on investments? Well, below are three reasons why I couldn’t tell this friend of mine my returns on investments.
a. I started my first business with nothing and that business has grown to a fairly large extent. Now how do I calculate my return on investment when you there was no initial investment capital on my part? All I started with was just a smart idea.
b. From the returns from my first business, I have started and invested in several other businesses and they are all doing quite well. Now how do I calculate my returns? I am simply living off the infinite returns of my investment.
c. My businesses have been providing me constant positive cash flow over the last couple of years and I haven’t exited any. Instead, I keep expanding and starting new businesses with the incoming cash flow. My friend must have probably taken an exit from his stocks and that’s why he was able to brag about his 79% return; but I am still in the game. Maybe when I exit my businesses and retire, I will be able to calculate my returns on investments.
In conclusion, I want to state categorically that this is purely my opinion. I have done fairly well building and investing in businesses; so I consider business as my very best investment. I don’t know what yours will be. But if you concur with my point of view; then take the bull by the horn and start investing in your own business. After all:
“It does not take money to make money. All it takes is just a smart idea.” – Robert Kiyosaki
Written by Ajaero Tony Martins
