investor

  

Definition

Neither a speculator (who takes on high risks for high rewards) nor a gambler (who takes on the risk of total loss for out of proportion rewards) but one whose primary objectives are preservation of the original investment (the principal), a steady income, and capital appreciation. See also investment.

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A Business Owner as an Investor

If you own your own business and also have a stock portfolio, think about the two holistically. Lessons learned in each will help with the other; Warren Buffett said that he's a better businessman because he's an investor and a better investor because he's a businessman. Consider capital allocation, investment opportunities, diversification, tax consequences, and similar considerations of each in relation to the other.

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