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re: Searching for yield

Posted on 1/23/12 at 11:27 pm to
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 1/23/12 at 11:27 pm to
quote:

investing in a small business isn't exactly something I'd call focusing on preservation of capital. Unless you're talking really small sums like $5-10k


I should have been more clear, but I actually was referring to a small investment in that size range since that is appropriate to many posters here. Most who have more to swing than that aren't looking for free advice on a board, right?

Given the above, I don't see how investing in a 5 year CD given current rates can be better than investing 10-20K for a few years with the brother-in-law who has a little something going. Again, larger concerns may not have as much trouble securing regular bank loans but smaller ones that aren't very risky are begging for cash.

None of the above applies to multimillion dollar enterprises with existing bank credit facilities, of course.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 1/23/12 at 11:46 pm to
I don't see it that way but to each his own. Pretty sure OP used to work for a fund, if I recall his previous posts. Also find it odd considering the usual mantra for "should I invest in so-and-so's business?" is usually "don't go into business with your family or friends." I guess that no longer holds, but that's definitely still how I feel. eta: Regardless of the risk profile you want to assign to a small business.
This post was edited on 1/23/12 at 11:49 pm
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 1/30/12 at 8:50 pm to
quote:

Again, larger concerns may not have as much trouble securing regular bank loans but smaller ones that aren't very risky are begging for cash.


FWIW:



[LINK]

So I stand by my initial point that they are not, and in fact are even more debt averse than they are traditionally, which they are.
This post was edited on 1/30/12 at 8:52 pm
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