Avoid Losing Money on Slow Investments

One investment that dragged us down was the rice trading. I cited in my previous article about lumber trading, this time we dropped off our business in rice trading like a hot potato.

Like wood, rice also take so much space, time, money and effort. Aside from being the number one favorite of rats and ants, the quality of rice easily deteriorates if it is exposed, more so when it gets wet.

For every pound of rice, we get only like 15 to 20 cents, but like wood, it does not bring your money's worth. You also get to meet problems in the shipment because it would take a number of laborers to bring the hundreds of sacks from the boat to the cargo truck. Like what I've shared on the lumber business, you can't also compete with big businessmen as they buy in volumes for their warehouses. And some outlets that you have already contacted would negotiate for terms which would slow down your next shipment if you only have just enough capital for the business. You may ask when we get into it? I believe on the saying that strike while the iron is hot but before the iron gets hotter, you better quit before your capital goes down the drain.

We also went into networking of rice, we made some few thousands because we had recruits who contributed to the growth of the team, but eventually, the company folded up because the supply was low and demand was high, the quality of rice was also not maintained properly during the first few months of operations as it was harvest time. It was summer when the company opened but come rainy season, the supply dwindled so the quality of rice also deteriorated. To be fair also to the company and to the forex master levels, but as they saying goes, some good things never last.