The Money for Nothing Club

No the purpose of insurance is mitigate a potential risk.

 

I really like your post.

Hobbies do cost money. But there was someone whom I really respect and admire, a person whom everything he did, he became the very best at. And I mean the best as in no.1 including on an international level. He did all of these things as his hobby. Here's what he said...

"Hobbies are your life", he's Japanese btw. He was a very good earner and highly educated.

I love the way that you reflect on things that were once important and now are not yet still have meaning to you and memories. You did enjoy and get thrills alone the way. These hobbies are how we spend our time enjoying ourselves.

Perhaps my words fail me, but it was a profound perspective this wonderful and generous man who performed many selfless acts gave me.

There's a lot "loss in translation" but there's a point.

EDIT
After he was satisfied that he had mastered one hobby, he moved to the next. Even though his "investment" in his previous hobbies just gathered dust. There were lots of awards and trophies too, just insane that dedication, patience and talent like that exists in one human.

 

That line of argument would work for me if potential risk was mitigated in both directions.
That is not the case with stacking - you are fully exposed to risk on the downside, with the intention of only hedging yourself on the upside.... I call BS - this is not insurance.
Given the risk exposure of stackers holding a naked long position in phys, likening any losses to an "insurance premium", then any profits to an "insurance payout", they really should question what they are telling themselves.

 

I like that. One could say, what we do, makes us who we are.

 

In my experience, I have seen a lot of clever and dedicated people wholly immersed in a hobby, and after retirement take that hobby (AND the retirement cheque) into a business venture.

The business fails and the retirement cheque is gone.


OC

 

I think you have totally misunderstood the risk in this case.
The risk OC is talking about is some sort of financial collapse - not the risk of making a loss on metals.

In the event of a SHTF event then having metals may help avoid losing everything.
As in Cypriots with sovereigns were better off than those that had lots of cash in the bank.

 

Money for nothing & your chicks for free ...Dire Straits

 

Is that so bad? Where would we be if no one ever took a risk on a bold business venture or a dream. Sure, failure happens far more often than success, but you have to at least try and try again, or what's the point of living?

 

Maybe, but I read somewhere years ago that 3 out of 5 new ventures fail in the first 5 years.

Not good, especially for the bankrupt!


OC

 

It's probably even higher than that. At least that's what my wife says. She's an accountant and has seen every detail of many small business failures.

You know the old saying "You can make a small fortune starting a business in Australia - provided you start with a large one".

 

Just ask a Telstra CEO.

 

Fair enough.
Then, maybe a more appropriate term to use would be a "punt on financial collapse"?

 

From memory, it's about 75% aren't trading beyond 12 months and, of the ones remaining, about 80% of them aren't trading beyond 36 months.

That's basically just 1 in 20 left after three years.

Note though that "not trading" isn't the same as "failed". Plenty of people have a go and end up figuring out that they're not cut out for running a business, or the market wasn't there or they got a better offer for a regular, salaried job. There are still plenty of outright business failures, but there are also lots of businesses that are simply closed down.

 

I heard that most businesses which went broke were restraunts.

 

Wife says mostly coffee shops.

 

I agree.

The worst thing is about cafes not being run by chefs is that business people know nothing about food and don't mind serving rubbish. They deserve to go broke.

Business people should stay away from food. I've seen them over order and try to get away with serving spoiled meat, massive health hazard. They treat their staff badly and pay their staff as little as possible. It's a customer based food industry, service and good food and a nice experience is what's wanted. Business people don't get it.

Equipment should be commercial, it's not a home kitchen, it's production.

Another pet peeve is that because everyone can cook a little they think they know what chefing is about. Wrong! Chef's study for 4 years before becoming qualified like an electrician or plumber, a highly trained chef takes his career seriously. Most chefs smoke because of the stress and anti-social hours. Constantly working in a hazardous environment of knives, hot oil, stoves, ovens, metal trays, pot, pans, meat, blood, often slippery floors and the pressure to get all the jobs done.

The biggest thing Chefing is about is the OPPOSITE of the staged TV shows, they're just shows. How do I know this... I'm 4 generation chef and a food science/health & sports science graduate.

When will people who haven't done the minimum of 4 years of professional cooking STOP getting the idea to run a cafe? FFS, there's enough crap cafes around.

 

I guess you could also call house insurance a punt on your house burning down.

 

What a crock of cow patties . Most of the best food ive eaten has been made by someones mum , nana or wife with no formal training

 

Trolling again?