Restauranteur A and B both have profitable restaurants and $1 million in savings. A invested his profits in stocks. B invested his profits in the building that houses his restaurant. A's resto is bankrupt. B's is on sabbatical. Vertical integration as a de-risker.
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So A’s restaurant folded up, and he gets to walk away with ~$600k. B personally owns a building with a tenant who doesn’t pay rent. I’m not sure I’d call that a de-risker?
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