In this episode, Nathaniel discussed 4 hot industries that he won’t invest in, and what his exceptions are:
1. No commodities like oil, gold, and silver, etc., but yes to commodity royalties.
2. No Bitcoin, but yes to blockchain technology or other related industries.
3. No real estate as a landlord, but yes to professional real estate investment groups.
4. No cash-heavy and cyclical industries like shipping, but yes to utilities and railroads in the US.
Overall, you can find a pattern: Nathaniel doesn’t like asset-heavy and high-risk industries, and he doesn’t like investments that require a lot of upfront capital-intensive work either. But overall, that’s not what ultimately stops him. What Nathaniel truly cares about when he invests, is his circle of competence. Kobe Bryant, LeBron James, Warren Buffett, Dr. Dre, what makes them successful? They all stick with what they are good at: their own business, their strength, their core values. When it comes to investing, most of the time “safe and boring” is good! It’s not worth it to chase the next “sexy new thing”.