Who is an ultimate investor?

As investors in the stock market, one is conditioned to think and act like a 'normal' investor. One thinks of buying and owning shares of a public listed company. By doing one's due diligence and through buying and selling shares of companies over the market, an investor seeks to maximise his returns from his invested capital. However, no matter what, he can never be as profitable as the founders of a public listed company who have built up and owned the business and got it public listed at a premium price significantly much higher than their initial invested capital in the start-up of the business.

We often heard of P/E ratio (price/ earnings ratio) of 10 and above for the shares of a company during it's IPO (initial public offering). At the onset of being public listed, the premium that retail investors would be paying is already 10 to above 10 times of the earnings per share of a company that goes into public listing. So, it is usually the founders and owners of the company who benefit the most to getting their company to be public listed since the net worth of their business has tremendously mulitplied by 10 times or more. This is the reward the founders and owners can receive for spending so much effort to start up and build up a business for public listing.

Thus, who is the ultimate investor over here? It is the ones who have started and built up a successful business that goes into public listing. For such founders and owners of the business, they invest from the inside of their business and sell shares of their business to other investors at premium pricing. So, as much as one is conditioned to think that being a successful retail investor is already a wonderfully side to investing, it is as much a reality to know that it is the ulimate investors who are the really more successful investors since they invest from the inside of their business rather than invest from the outside which retail investors do.

In conclusion, the ultimate investor is one who adopts the risk and learns to start a business and invest from the inside of their business directly to grow their business generating revenue and income for themselves. On the other hand retail investors no matter how successful they are can only be at most average investors since they can only invest from the outside of a business and have no controlling interest in a business. No matter how good retail investors are, it is ultimately the ultimate investors (as business founders and owners) who receives the most from their business since they have the controlling interest and sell shares of their businesses to other retail investors who often pay a much higher premium and have 'almost no say' in the business. So, should one be an ultimate investor who learns to start and grow businesses selling shares of his businesses to other investors at higher premium or be the outside investor who buys shares offered by ultimate investors of businesses at high P/E ratio without any controlling interest and relies entirely on the fate of the business run by ultimate investors?..................