Why does your breeder need you? Why if he likes looking at the birds didn't he get his own. Right now the answer might be money but long term that will not be an issue.
Because he can simply not get these birds from anyone but me. Even if he had the money. Plus he could never sell the offspring without me. I am also the contact to the customers. A two person falcon farm can easily produce 150 falcons. The market for the right bred of falcons is totally under served. It is also not in Europe but the Arabian gulf. I could sell 1000 of them and would still get asked for more.
But also why do I need to go so big? I want to diversify my investments. So even 10 falcons are enough for me. He can keep doing it while working his day job and make his annual salary in 3 month work.
Some people believe a diversity of investments is the key.
Both Mark Twain and Andrew Carnegie believed you should put all your eggs into one basket, and then watch that basket.
It's funny you should say that, I learned never put all your eggs in one basket. With literal eggs and incubators. I will not invest more than 20000 $US in falcons. Its just to stop me from getting bored. At least I have something to think about. Investing with just ETFs seams so boring. I like some active management.
I own a small share of a professionally managed forest investment. The land is bought, planted, looked after, and the trees grow. Grow cycle is about 28 years or so. No matter what happens on wall st., it all comes down to the price of timber at harvest.
At current log prices I think compounded annual return is well over 10%. The growth is literal.
That sounds like a great investment. I have some forestry experience from back in the day. I think I might do that in the future as well. There is always a need for wood. And with people becoming more aware of the need for loacally FSC wood I think it is a also a morally right investment. I presume it is in the USA?
What we're talking about here is a private equity investment. You're really investing in a business, not falcons (at least not any more than a bar owner is investing in beer).
These investments are usually less about the idea itself than your belief in management's ability to execute and honestly disburse profits to stakeholders. As such, it's best to limit this type of investment to people with whom you have a personal history. I've invested in the start-ups of a former business associates (including one who started a distillery). This type of investment is usually risky and, even if successful, may take years to come to fruition.
Barring the presence of a manager in whom you have personal confidence, your best bet is almost certainly investing in public, regulated companies.
I agree that this is best done with someone you know well. I have seen too many of these things go bad because people cheat each other. Luckily I am also in charge of sales and all the money goes through my hands first.
He means that in general, if you can make $5k on one falcon, it doesn't mean you can breed 100 falcons in a year and make $500k. I don't know the industry so perhaps it's a possibility, but at some point there's a limit as to how many you can breed and how people will actually buy them from you. So you might be able to make excellent returns with a little bit of money, but you can't expect to build it into a million dollar business.
However, like I said I don't know the falcon business. We're just talking in general. If you can make it work and make a bunch of money from it, by all means do it. Don't waste your time trying to get a few anonymous internet users to validate your dreams :)
you are right. I was just curios as to what others have done in the past. 500k for 100 falcons is only for the cheapest whole sale birds that nobody wants.
