The following is a guest post by author and investment manager Mariusz Skonieczny. Enjoy!

Creating art is different from selling art, and the same goes for investing – the business of investing is different than actual investing. Not knowing the difference may cost you the opportunity to retire with enough money to enjoy the rest of your life.

Any kind of business is ruled by the following equation:

Revenues – Expenses = Profits

It doesn’t matter whether the business is a hair salon, cable company, or investment company. Unless revenues exceed expenses, the business entity will eventually fail. There will not be enough money to pay for employees, rent, and other expenditures necessary to operate the business.

A wise businessperson knows that if the company’s product or service does not satisfy its customers, the customers will eventually leave and the business will suffer. For example, it [...]

Read on and enjoy … Do You Understand the Difference Between Investing and the Business of Investing?