What Interest Me This Week

The business of durian

Assuming it's not a scam, I just invested in three pieces of durian trees. I'm regretting it already.

We're talking about five years of no-yield, followed by 15 years of questionable revenue. Who knows what's the market rate for Musang King will be like after that.

I don't recommend investing in something without knowing the business, if not on the economic basis then at least on the operational level. In this case I know next to nothing on the operational side of the durian business. Being a consumer counts for nothing.

The only thing I fall back on was my deduction on the economic level. The thesis is pretty simple: people want Musang King, there's not enough of them. Put in one dollar to a farm, make 20 cents back year by year.

Top of the line product, scarce production facilities (very finite land), tiny market share (room for growth). These things do add up.

It sure as hell doesn't yield like a farm in Binance Smart Chain, but at least durian has no correlation to Bitcoin. That's important in my portfolio.

I previously put some thought into wine and art investing. Durian-investing just doesn't have the same ring. "Girl check out my five trees" like parading an NFT is anti chick magnet.

Putting capital in a durian farm is more analogous to a gold mine than alts like wine and art. Those things are store of value; whereas trees and mines are revenue generators.

The down side though is liquidation, there's no easy way to turn the tree back into cash quickly if I have to.