The threat to the Coronavirus is a deadly threat. It’s sweeping the world at an alarming rate. The death of millions is guaranteed. We are all trying to protect ourselves by simply being watchful of what we do, but the fact is you can’t stop the flu virus any more than you can stop the wind.
The stock market has dropped so hard and 100s of millions of dollars have been lost in the downturn of the virus and the panic that has occurred since it has hit U.S. soil. The ones that are in the best seat right now, are those who are self-employed in a business that can weather the storm due to its product or service.
Small Business, a Safer Bet
When talking about risk, and being careful of what you invest in, the stock market is the most volatile place to put your money. As for small businesses, it’s a safer bet. Several of Peterson Acquisitions clients are right now able to keep their money and stay in business, rather than watching their money fall out of the market without any control.
We have a trucking company that is for sale right now. I asked the seller of the company if this would hurt his business and he was adamant that it would only increase the business, because trucking will never die, and will always be in demand. The buyer just lost 150K in the market drop, and now stands to buy this trucking company for only 180K down and will be making 250K a year doing so. The business is growing, and he has control. The stock market is so volatile, and limits control of the investor down to two things; to hold or to sell. That isn’t too many options to take advantage of.
Weather the Storm
It doesn’t matter if you are a Kansas City deck builder or a CPA in St Louis, small businesses of all types can weather these storms by slowing down, minimizing loss, or changing direction on marketing or who their clientele is. The stock market is a one-way ticket to slow gains and powerful overnight losses with little or no control of what happens.
When it comes to building wealth, stick to small business, it’s a safer bet.
Contact Chad Peterson with any questions.