Grant Sabatier’s Evolution in Investing: From Index Funds to Buying Businesses

Millennial Money founder Grant Sabatier’s investing style has evolved over the years, from starting with an “index-first strategy” to diversifying his portfolio to include real estate, start-ups, websites, and collectibles like watches. While index funds played a crucial role in catapulting him to financial independence, Sabatier now believes that investing in pre-existing businesses or building one yourself is the way to go in today’s environment.

Sabatier sees an opportunity for young investors in acquiring businesses from the baby boomer generation, who hold a significant portion of the nation’s household wealth in the form of private businesses. He recommends using platforms like BizBuySell to explore businesses for sale in your local community, focusing on recession-resistant industries like home services and climate change-resistant businesses.

When it comes to financing the acquisition of a business, Sabatier suggests options like seller financing, SBA loans, bank loans, or private lenders. Building a relationship with the business owner and forming a partnership to buy a portion of the business is also a viable option for those who may not have enough savings or access to traditional financing.

Sabatier’s advice highlights the shift in investment strategies towards entrepreneurship and business ownership as a path to financial independence, emphasizing the importance of adapting to the changing economic landscape.