How much money to risk M&A / VC?
Lets say you come into some money - how much do you keep and how much do you spend on finance ventures that could also potentially lose money?
Lets say you come into some money - how much do you keep and how much do you spend on finance ventures that could also potentially lose money?
Career Resources
Let's say you had $100 million cash - do you completely retire or do you risk some on the capital markets?
What is a minimum cost VC diversified portfolio?
$100MM? I'd retire before you could blink. I could spend $50,000,000 on crazy real estate, boats, cars, ect and still make $3MM - $5MM in interest per year on the remaining $50MM.
Yeah $100 million is a lot in toys and houses. I guess the question comes to how much you want control.
Without ever had any sort of money near that sum, I’d think I’d get bored of retiring and sink some money into my own venture. Why not?
I reinvest almost all of my capital and did so after my first exit. Lifestyle inflation is for idiots.
Fwiw. My rent is probably lower than most of my employees and my business partner drives an old car from the mid 00s. He has one of the worst cars in the parking lot at our manufacturing company.
I think this good for a few reasons:
You can go without cash for a long long time and it's not a huge deal if you have to do so. Other people have to take out garbage loans when covid hits them but I don't really have to worry about anything. It's very stress free and easy living.
Employees won't resent you. We primarily do turnarounds now at smaller companies. This means being very strict about cash and cutting expenses. I don't think employees would be very happy if we showed up in a Ferrari and told them to cut expenses. Most people don't understand that we pull $0 out of a company and just reinvest aggressively until exit.
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