I think investing should be like any other form of business. If you think about it, any one of you that makes an investment is no different to an entrepreneur making the most of their money by investing for growth.
What business owners know is that the best (only?) way to make money is to increase your income and to keep your costs down.
That is inevitably going to help you make profits. In the world of personal investments it’s really no different.
Investing for income has long been a growth strategy because when the income is reinvested is helps to produce enhanced gains over time. So searching for reliable investments that can deliver income that is reinvested can be seen as a sound strategy for increasing returns.
At the other end you also want to keep an eye on costs. Money coming in is no good to anyone if it’s simply waiting to be sent (spent) back out. So making sure you reduce your costs to an absolute minimum, and in all honesty being a bit ruthless with them will also help you to maximise returns.
You can then take the entrepreneur’s mentality one step further by investing in ideas that may well provide exceptional growth on their own. These may not provide that income stream to begin with but are worth the investment for their growth potential (for this you can think of small company funds or emerging markets funds), then you have a business or a portfolio that is well balanced and primed for success.
Of course what every entrepreneur knows is that they are best at bringing people together to make it happen. Nobody can be successful on their own. The very best business owners and investors take advice from people they trust to help them make the right decisions.