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Investment basics for businesses

  Small business owners often spend all of their time trying to provide value to customers and overlook the importance of looking after the product of their business’s success; their personal wealth. But spending a little more time and effort managing personal investments can make a business and its owner's personal journey far less painful in the future. Here are some basics to assist business owners on their investment journey: Risk and return Similar to business, the limits governing investment decisions are risk and return. Low investment risk usually results in low investment returns. As an investment's risk increases, a greater return is required to compensate for the additional risk. Diversification Diversification can be summed up by the adage 'don’t put all your eggs in one basket'. Spreading your capital over several investments lessens the possibility of losses that can arise if your investments perform poorly. Asset classes Asset classes are investment group