When you’re in business, you’re always looking at ways to improve it, by developing new products and services, providing excellent delivery for customers, and building trust with both suppliers and your consumers.
That’s your day-to-day work – building the business and making profits that not only pay a dedicated workforce but also give you money to invest – so where should you look when you want to invest and make good returns? Can a holding company investment firm help your business?
Holding companies explained
If you’re thinking of investing in a holding company, then you need to understand exactly what they do and how they could make your investment work profitably.
Holding companies don’t have any operations or activities and don’t have any other active business. They own assets and thus can have shares in a wide range of other businesses. For example, a holding company could have investments in publicly traded stocks, in song rights or brand names, could be involved with limited liability companies or hedge funds. Any business that has value could be something a holding company might invest in.
What can your business get out of an investment like this?
Research your options
As a business owner, you’ll know that investments can be risky as well as extremely lucrative when they work well. You could invest in your own portfolio of stocks and shares and pay an advisor to manage that, but you’re always at the mercy of the markets.
When you’re considering investing in a holding company, you need to find out exactly where they invest and what the returns from those investments are – and what you will get back from your investment.
A holding company gets its money from interest, rents and dividends, so you need to check how it has performed over a number of years. If you decide to invest in a holding company, you should be looking to the long term rather than the short term. These are businesses that are locked into the way they perceive the future of the companies they invest in and, although they will take some risks, they know that they need to convince other businesses to invest in them.
A case study
There are many holding companies that have major investors, and M1 Group is one that has developed a wide range of successful businesses through hard work and developing investments in areas such as construction and, in particular, telecommunications. The company has attracted many millions of subscribers to Investcom, and has interests in aviation, real estate, retail and fashion as well as the energy business and industry.
The company’s business model in diversifying and attracting new investors has helped it move towards building an increasingly attractive organisation for businesses to invest in. You can find out more about them at M1 Group on LinkedIn.
Investing with care
Investing always has risks; you take them and then live with them. Holding companies have such diverse holdings, carefully sourced and managed, that if you want to invest with one, then with the proper research, you could be on to a winner.