When you own a business, you typically have three good options for what to do with the profits: Invest for growth. Invest for margins. Build up your cash reserves.
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Money holdings should be diversified and growing in relatively safe investments with at least 20% in cash or cash equivalents for liquidity.
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I don't have any general advice for investing cash in market speculation because I'm flat out bad at it.
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Speculation is one thing, investing in managed funds(i.e. index matching funds) or bonds is another.
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Those are less risky options if you have a bunch of money burning a hole in your pocket. You're still speculating, just now speculating on the market instead of against the market. Still "picking up pennies in front of a steamroller" behaviour, IMO.
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Taleb's term for making big bets, with small returns, against an unlikely catastrophe.
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As a long term investment strategy, anything of that nature tends to have crummy performance.
End of conversation
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I would also say being a "single crop" farmer is also a massive risk. I know all my farmer family have at least 2 major crop streams, some have 3
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There's a reason crop rotation was a common medieval farming practice. It's very antifragile.
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Well it was done so as to not exhaust the ground of nitrogen and goodness, that was just a byproduct.
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In modern farming, having 100% of your land for a single crop, will bite your in the arse. Lots of crops share the same logistic needs in terms of fertiliser and pesticides
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That's why I'm invoking Taleb. He's big on the notion that overspecialisation breeds in weakness.
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It's slow death...
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You would really like Taleb. Let me know if you ever have space in your reading queue.
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yeah I suspect I'll be grinding through a few books in my travels two and from the US.
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