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You should count those $200 millions as a sunk cost ... Sure you could buy index funds, but then, what do you have, more then a piece of paper ? If you have lot
by z3t4 10y ago
You should count those $200 millions as a sunk cost ... Sure you could buy index funds, but then, what do you have, more then a piece of paper ? If you have lots of money, it's much safer to buy "hardware".
- LaurensBER 10y agoDoes it really works like that? If I invest 200 million in an Australian Index funds I''m exposed to all risks/rewards that the Australian economy faces. If I invest 200 million in a greenhouse then I'm less exposed to all risks and rewards in the Australian economy (assuming that there's a weak correlation between the state of the economy and amount of Tomato's consumed, which seems reasonable) + all the risks in the Tomato business. Now, it might be easier to insure against Tomato specific risks but I still don't think that the Tomato business (as awesome as this greenhouse sounds) is a clear winner here.
- oldmanjay 10y agoI imagine that the people funding this consider it a strategic investment with potential upsides beyond making as much money as possible over some arbitrary time period