Sharp Daily
No Result
View All Result
Friday, July 25, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Investment Vs Business

Vincent Wangu by Vincent Wangu
June 7, 2023
in News
Reading Time: 3 mins read
Investments

Investments [Photo/Courtesy]

Investments and business are similar in that both need you to commit some money in anticipation of future profit or benefit. The key difference, however, is that in business, you are actively involved in management, while in investments, your role is more passive. An investment turns into business when you begin to control the operations; the opposite is also true.

Say, for instance, you had to choose between owning a business versus being a shareholder. If you chose to run a business, you would need to be actively involved in its day-to-day operations, manage it, and interact with customers; essentially, create value and then sell it to your target market for a profit. On the other hand, if you were interested in acquiring public equity, you would give your cash to a stockbroker who then acquires a number of stocks for you. Without too much interference from you, your shares would earn you money.

Read more: Exploring the World of Alternative Investments: Diversifying Your Portfolio Beyond Traditional Assets

Both operating a business as well as investing have their advantages and disadvantages. Starting a business offers you independence because, theoretically, you are your own boss and can pick your own hours. In reality, though, a business will require a lot of your time, especially if you are just starting out. Added to this, there is also the stress of dealing with your competition, handling employee issues, and stakeholder management.

RELATEDPOSTS

Why young professionals should care about pensions

July 23, 2025

Why the obsession with foreign investors is holding back local wealth

June 10, 2025

Starting and running a business is also capital intensive, requiring an entrepreneur to put in their personal savings, raise equity or take on debt, even though it could take several months or even years before the business breaks even.

In contrast, investing in equity may sound easier, but this is not necessarily true. With any investment, there is a risk that you will not get the anticipated returns due to volatility and market fluctuations. The greater the return, the higher the risk. This is because the performance of the firm you are investing in and the market are out of your control. Another challenge is that investors often expect a quick return; in reality, to get the best out of any investment, one needs to take a long-term view. After carefully doing your market research, you then proceed to select the firms whose long-term outlook is positive.

Read more: Advantages Of Investing In Money Market Funds Over Banks

This is where fund managers come in place. These are professional firms with expertise in the investment field. Fund managers collect money from many different individuals and organizations and invest on their behalf. They diversify and invest in many sectors, reducing the risk of your money as an investor suffering a loss. The fund manager monitors market, and economic trends and tracks securities in order to make informed investment decisions.

Fund managers are also affordable and enable you to access investments you would not have. A government bond in Kenya requires a minimum of Ksh. 100,000 with top-ups of at least Ksh. 50,000. One can invest in a money market fund with as low as Ksh. 5,000 with top-ups of a thousand shillings. The money market fund may then be invested in treasury bills, among other venues.

All said and done, having a blend of both will always come in handy. Quoting Warren Buffet, “Being a businessman makes you a better investor, and being an investor makes you a better businessman” This is because most businessmen limit themselves to their own field, and most investors don’t really think about businesses which is ideally the underlying asset of their investment.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

It’s A Double Portion for Africans With the Mega Dangote Oil Refinery Plant

Next Post

Indian Airline Company (Indigo) Eyes The Kenyan Market

Vincent Wangu

Vincent Wangu

Related Posts

commercial illustrator
News

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025

LATEST STORIES

Why young professionals should care about pensions

July 23, 2025

How Kenya can reinforce fiscal rules to prevent recurrent budget overruns

July 23, 2025
commercial illustrator

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025

Transferring Your Retirement Benefits Between Pension Schemes in Kenya

July 23, 2025

Invest in stability: introducing the Cytonn USD money market fund

July 18, 2025

The Importance of Asset Diversification on Kenyan Pension Funds

July 18, 2025

Park your money where it grows: Why more Kenyans are turning to Cytonn Money Market Fund

July 16, 2025

Strategies to boost alcohol and tobacco tax revenues

July 16, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024