Why manage just your portfolio as a business? Why not manage your entire "estate" as a business ... that includes, but is not limited to, your portfolio? Businesses have and manage real estate, financial capital, human capital, loans, equipment, taxes, insurance, budgets and other pieces that are similar to pieces of our lives. Businesses have ratios- why not leverage personal credit the same ways that businesses do (loans to capital)? Ditto: Opportunity Cost? However, doing that requires a different mindset: businesses are in business to make money and be profitable and execute accordingly. Households tend to run more on how things feel versus overall return. Try stepping back and looking at everything, including your portfolio, and see how it fits in a business-like "Balance Sheet". Are your decisions siloed in a vacuum or taken as part of the whole enchilada?
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Why manage just your portfolio as a business? Why not manage your entire "estate" as a business ... that includes, but is not limited to, your portfolio? Businesses have and manage real estate, financial capital, human capital, loans, equipment, taxes, insurance, budgets and other pieces that are similar to pieces of our lives. Businesses have ratios- why not leverage personal credit the same ways that businesses do (loans to capital)? Ditto: Opportunity Cost? However, doing that requires a different mindset: businesses are in business to make money and be profitable and execute accordingly. Households tend to run more on how things feel versus overall return. Try stepping back and looking at everything, including your portfolio, and see how it fits in a business-like "Balance Sheet". Are your decisions siloed in a vacuum or taken as part of the whole enchilada?
Post: Your Portfolio, Your Business
Link to comment from October 4, 2025