Re:If You Want to Go Broke, Listen to a Billionaire
by WillPontificate on Tuesday October 01, 2019 @06:51PM
(#21131724)
Yes and no.
I agree with everything except #5. My marriage & kids are irreplaceable.
So if you have everything else, which is a more rational bet:
- Investing in a low probability, massive payoff
- Investing in a lower (yet still high) payoff with less variation in expected outcome.
There are huge segments of the economy where you can buy a small business for at a 3 - 6 multiple of annual earnings. Many companies in this space are unsophisticated, so there is massive potential for operational improvement as well (introducing basic process, tech, and marketing strategies).
I agree with everything except #5. My marriage & kids are irreplaceable.
So if you have everything else, which is a more rational bet:
- Investing in a low probability, massive payoff
- Investing in a lower (yet still high) payoff with less variation in expected outcome.
There are huge segments of the economy where you can buy a small business for at a 3 - 6 multiple of annual earnings. Many companies in this space are unsophisticated, so there is massive potential for operational improvement as well (introducing basic process, tech, and marketing strategies).