If you had 50 million euros, where would you invest it?
- In a Haussmann-style building in Paris: a bucolic setting, friendly neighbors, a 100% remote activity, a return guaranteed by your tenants’ monthly transfers;
- In a production plant: machines, noise, smoke, pollution, staff to manage, minimum presence required 24/7, uncertain returns and crying every month to the banker to guarantee payment of salaries ;
- Cryptomoney ?
To be able to answer you must confront yourself with the three cardinal principles of corporate finance :
- The only indicator that guides an investor is called Return on Investment and is measured in €€€ (or $$$) ;
- There is no gain without risk. No bread, no gain. Whether it’s a vacant rental property or a business that can’t sell what it produces, no option guarantees not only the return but also the preservation of the capital invested. Your answer will depend primarily on your risk tolerance. In short, are you more of a skydiver or a golfer?
- No investor cares about what happened yesterday, only what will happen tomorrow. The finger points to the moon and investors look at the moon.
Now guess what engineers are watching 😀 ?