Quote from James A.Hart on June 27, 2025, 6:31 am

There’s no one-size-fits-all answer.
It’s not binary.
It depends on your personal goals.

If your goal is to maximize enterprise value or get the highest ROI, then the answer is simple:
Reinvest as much as possible back into the business.

Why?

• Reinvested profit often avoids tax (or delays it)
• You’re likely able to turn $1 into $3 far faster than you’d earn 10% annually in the S&P
• Compounding within your business is often faster and more strategic

But there are trade-offs:

• Reinvesting isn’t passive
• It doesn’t diversify your wealth
• Eventually, you may struggle to find places to reinvest without distracting from your core strategy

That’s why it comes back to this question:
What are you actually building toward?

• A $50M exit?
• A $100M valuation?
• Or just $10K/month in cash flow and peace of mind?

Figure out your true financial objective, define your risk tolerance, and understand what reinvestment that goal requires.

If you’re unsure, ask someone who’s already achieved it.
That shortcut alone might save you years.