A few days ago, I was speaking with a good friend, the owner of a family business. He told me about the numerous challenges affecting his company: a recent cybersecurity attack, difficulty finding qualified employees (he must hire foreign workers to meet his needs), high client demands, and succession planning. After several minutes of listening attentively, I asked him, “Despite all these issues, how is your business doing? What are its financial results?” His response: “Last year, we had the best year in our history.”
At COTE 100, a company that has been growing for several years, we also face our share of challenges. During our weekly meetings, we review a series of issues to address and areas to improve in managing the business. However, I must admit, having experienced both scenarios during my long career, that while it poses many challenges, it is far more stimulating to manage a growing business than to deal with a declining one.
Moreover, I believe it is much harder to be a business owner than an employee. When you are an owner, all the problematic issues land on your desk. And the problems follow you home in the evening, on weekends, and even during vacations! For most employees, the difficulties stay at the office.
A business owner must have a strong resolve. They also need to maintain perspective: just because there are numerous problems to solve doesn’t mean the company is not doing well! And it must be said, being a business owner also comes with significant advantages, starting with greater scheduling flexibility and independence—not to mention the financial rewards when the business is successful.
I often say that corrections, bear markets, and periods of high uncertainty are the price investors pay for the long-term high returns the stock market offers. In this sense, the situation of a stock market investor resembles that of a business owner. They will always have problematic cases to manage in their portfolio: underperforming companies or those experiencing difficulties. They must constantly ask themselves whether these issues are temporary or permanent. As we know, stress is high for every stock market investor and ever-present.
If one wants to avoid setbacks—or at least minimize them—the goal is not to become a business owner but rather to seek honest, comfortable work with limited responsibilities. In investment terms, this equates to investing in bonds.
Being an entrepreneur or investor means embracing uncertainty, facing constant challenges, and accepting that results are not guaranteed. Yet, it is also an opportunity to build something greater and leave a lasting mark. Being a business owner makes me a better investor; at the same time, being an investor makes me a better business leader.
Despite all the inconveniences and relentless stress, I wouldn’t trade my life as an entrepreneur and stock market investor for anything in the world.
Philippe Le Blanc, CFA, MBA
Chief Investment Officer at COTE 100
_______
Philippe Le Blanc’s Blog is published in
