Thanks for the input and you are absolutely right. I didn’t really mean to suggest that someone should put all of their eggs in one basket in the ball python business. More than anything I wanted to say that you have to take some risks in order to see rewards. As you said I think that basing your entire reptile enterprise on a tiny handful of really expensive animals is a great way to lose a lot. It could be a winner but because most of us can’t afford to lose on the bet it’s not a practical approach. The same is also true for a sea of low dollar animals. The overhead will nickel and dime you to death. The same calculated risk that a professional poker player is taking is as appropriate a metaphor as I can think of; take a measured risk in a game of calculated chance while attempting to remain emotionless …until you win. The guy who plays the nickel slots and never steps away after getting on the up side is just slowly losing it all with no realistic chance to make big gains. People shouldn’t bet their business on being the exception to the rule. Nobody hears about the tons of people who lose $100 playing nickel slots. You only hear about the guy who won $10,000 on his first nickel. When all you hear about is the winners your perception gets clouded and you think success is waiting for everybody.

Thanks again. Your comment is excellent. I hope everybody reads it as they read what I originally wrote.

Colin

I am a professional poker player, and I basically manage risk for a living-essentially the same way your trading friend does. But my emphasis is not on getting rich, its on making a living first and foremost. Capital is key in everything you do, especially business. I play in games I can afford to play in and no matter what happens today, or really even this month, I have a bank to account for these times. Because no matter how big your skill its-it means very little if you can’t use them. I have the money to play in much higher games, some of which could pay my bills for a year or even more, but if I take this approach and I don’t win right away I will be screwed.

I don’t think its about putting all your eggs in one basket, its being able to put your eggs in future baskets as well. I guess my point is really that no one has patience and a real understanding of risk/reward. You see the 2 extremes: guys buying tons of low value animals to ensure that don’t go busto, or guys betting it all on 2-3 animals-either of these strategies are long term losing propositions. I have 4 animals-3 of which are high end, of course my goal is to make a profit, but I’m not betting it all on them. I could realistically afford to buy 8-10 high end animals, but if I do so, I won’t be able to properly work my craft because of liquidity issues-snake rich and cash poor-as you have said in many other articles. I see this get rich attitude in my business lots and seldom do any of these guys ever get rich. Wealth is hardly ever achieved without first being financially independent. I think in categories when it comes to money; financially solvent, financially secure/independent, and wealthy. You can realistically skip a step maybe 2, but I have seldom seen anyone go from broke to wealthy-that just doesn’t happen. I don’t mean to rant on. I just want to add that there is usually somewhat of a middle ground with all investments.

Keep the good info. coming. thanks