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There was one other interesting bit of advice I recall from that book, which is to invest in things that have fallback value (forgot the exact term) in case the
by SkyMarshal 9y ago
There was one other interesting bit of advice I recall from that book, which is to invest in things that have fallback value (forgot the exact term) in case the investment doesn't pan out. He gave the example that when the king of Babylon decreed that a new wall of iron (iirc) be built around the city, the "richest man" in Babylon recommended buying up lots of iron. If the wall got built, it would need iron, driving up the price. And if the king changed his mind and it didn't get built, other things would still need iron, so you wouldn't lose all the value in your investment. Basic hedging strategy.
- Al-Khwarizmi 9y agoI haven't read the book, but from your description it doesn't look like especially useful advice to me. If it's obvious that a given investment has good fallback value, then the market has probably factored that in already by the time you are investing. If it's not obvious, then the tip could be superseded by the more general one: "if you have information that most people don't and it makes you think that an investment will work, then go for it". But that is rather obvious, and the problem is to acquire that kind of information.