In some ways, the principles of a successful entrepreneur are poles apart from those of a successful investor. 


Entrepreneurs commonly pour everything into their business in order to start it, scale it and potentially sell it, including their time, talent, and treasure (capital). Business owners customarily concentrate their resources into the business. So, the idea of spreading risk into companies they don’t control would be a nightmare for many entrepreneurs. 

If entrepreneurs are to invest in other ventures, they are likely to only do so when the company is well established and generates sufficiently high profits to provide surplus capital beyond the business’s needs.

However, by contrast, the general maxim in investing is diversification – spreading capital across asset classes, sectors, and regions – is the only “free lunch.” – says UBS

The latest article written by our partner UBS explores how concentrated wealth affects financial goals. They discuss the role of a concentrated position in achieving financial goals, the constraints founders face with regard to their concentrated equity positions, and how holding a concentrated stock position can influence financial goals.