Investing vs. Building from Scratch

For some the urge to create and build something from scratch is great. I fall into this camp. Because the urge in some is great it’s also good to consider that when it comes to capturing value, investing ends up being a much less risky endeavor because of the option for diversification.

Scenario 1: Invest

Make a list of 5-7 things you are really passionate about and believe will grow in importance in the future. Try to make these 5-7 things unique or occurring in different, uncorrelated sectors. Now make a list of people already building stuff to grow and improve on these things you’ve listed. Make a financial investment in the most promising groups active in these areas.

Scenario 1: Build yourself from scratch

Commit 7-10 years+ of your life on something you believe in with deferred compensation and high likelihood of failure on the idea that value will be “captured in the end” and possibly offset the deferred compensation.

This is not very complicated but it can be something that only resonates after you have been in the trenches trying to get something off the ground via “Scenario 1.”

Keith Kelley has said he loves it when he has an idea, Googles it and finds some other people are already working on it because it means he doesn’t have to step in and do it and that the only things he does take action on are things that continue to needle at him and that he can’t find in existence or can’t convince someone else to make come into existence.