|
EC SD | I think of it like this: Farming is one business of mine, and investing is another. When you have multiple businesses, you need to keep each separate from the other, as in separate accounting books. I have had many other businesses in my lifetime. I may start more businesses, like owning apartment buildings, or trucking, or snow removal, seed sales, etc. Each one needs to stand on its own two feet, and not require subsidies from the others, without a conscious investment decision to do so.
Over time, you will have some accounting history for each, and will be able to see which business activities have higher ROI. Invest more in those! Invest less in the others! If the best ones needs more capital, then borrow to increase your capability, and grow that activity.
Even if you are 100% farming, you can separate out the costs of different activities, like planting, spraying, harvesting, hauling, etc. in your accounting system. Or separate out by area, like county by county, or field by field. Accounting is a tool for management decisions, so use it to whatever extent you need.
The ROI from investing is quite high, so give it some capital... Make your max Roth IRA contribution every year you can! I have over 20% average returns for the last decade in my IRA with barely any trading at all. My taxable brokerage account is up over 50% this year alone. Lesson being: diversify, diversify, diversify... | |
|
Anyone investing in silver mining corporations?
