A successful entrepreneur explains why boredom drives him to chase high-risk investments like crypto and startups, even when his business already generates plenty of cash. His solution: allocate a small "fun budget" for speculative bets while keeping most capital in boring, safe assets.
Are you taking on too much risk because you're bored? This is something I see constantly with entrepreneurs, is that things are going really well in the business. We're generating income above our expenses. And then because things get boring, we constantly have this need for excitement. We go start investing in crazy risky assets like startups, like crypto. Like we find these harebrained schemes because we're actually looking for that dopamine rush. We're looking for that hedonic cycle of high risk, high reward. And it feels so good when those things pay off. But the reality is we need to understand our nature. And so what I recommend is that we actually set aside just a small budget for investments that don't make any sense or that, that might be just for fun or to scratch that high-risk, high-reward itch. But we take the bulk of our money and we actually put it in things that are long-term oriented, much safer and lower risk. And we just spend a portion of our money investing in those things that are the high-risk, high-reward and yield that dopamine rush.
