RO RO FARM Co.
Investment Partnership
 

OUR MAIN GOAL IS TO - AVOID THE BIG MISTAKES!

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Once upon a time, a young man applied for a job as a farmhand. The Farmer asked for qualification, the young man replied, “I sleep through a storm.” This puzzled the farmer but he liked the young man and hired him anyway.  

 

One week later, the farmer and his wife were woken by a violent storm ripping through the valley. He leaped out of bed and called his new helping hand but he was sleeping soundly.  

 

They quickly began to check things if all things were secure. They found that the shutters of the farmhouse were securely fastened. A good supply of logs had been set next to the fireplace. The farmer and his wife then inspected the property. They found that the farm tools had been placed in the shed, safe from the elements. The bales of wheat had been bound and wrapped in tarpaulins. The tractor had been moved into its garage. The barn was properly locked tight. Even the animals were calm and had plenty of feed. All was well.  

 

The farmer then understood the young man’s words, “I can sleep through a storm.” The farmhand did his work loyally and faithfully when the skies were clear. He was prepared for any storm. The moral of the story, preparation, and diligence during calm times lead to peace and security during difficult times. This is how we operate. Tough times will come; it’s guaranteed and instructive art. My wife, in-laws, parents, professor, cousins, and best friend’s money is invested along with my money. I’m not interested in risking my partners’ hard-earned money. We are not interested in putting something important to us at risk, for something that is not important to us.  

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In Genesis 41, the Bible talks about how the world goes through seven years of great prosperity, followed by seven years of great famine and agony worldwide. Only Egypt is prepared because Joseph advises the Pharaoh by interpreting his dream. Thus, preparing Egypt for the famine seven years. Likewise, the markets will go through tough times. "Anything can happen in this world, it's instructive art" (Warren E. Buffett). During the good times, even an idiot looks like a genius. "After all, you only find out who is swimming naked when the tide goes out" (Warren E. Buffett).

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Further, the important thing to note about market bubbles is that it can go on for many years before it burst.  

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​It’s not that I’m so smart it’s just people (smart people) do dumb things, and they make me look better.

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FUTURE OF RO RO FARM CO. 

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A butterfly goes through four stages: 1. egg, 2. larva, 3. pupa and 4. butterfly. Currently, Ro Ro Farm is in the larva stage.  

1. Egg – Ro Ro Farm gathers capital from partners.   

2. Larva – Ro Ro Farm grows through investment in undervalued income-producing securities.  

3. Pupa – Ro Ro Farm takes control of a public company, which provides non-peculiar leverage. Thus, becoming a public and holding company.  

4. Butterfly – Ro Ro Farm grows through investment in income-producing undervalued securities and acquisitions of business with management (preferably owners) already in place.  

 

Now, it is very difficult to reach the butterfly stage. It will highly depend on me, and current and future partners' support. In fact, it cannot be done without partners' long-term support and patience. If we can reach the butterfly stage, then every partner will accumulate enough wealth, where he or she will be one of the richest person in the world.  

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We don’t know if we will ever reach the butterfly stage. However, it’s very important to note that it doesn’t matter. We were very happy when we managed $4,000. That is even before the inception of Ro Ro Farm. Our utility - happiness - has not changed with the increase in the size of the fund. We just enjoy the process. We were having fun when we were managing small amounts of capital, and we having fun now. 

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SPECULATION VS INVESTING 

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We are not in the game of speculation. We don’t invest in anything that doesn’t produce income. For example, bitcoin and gold’s price is purely based on what the next person will pay you. It is purely psychological. If the market closes for 5 years, bitcoin and gold will not produce anything. We are unable to value anything that doesn’t produce income.  

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We are in the game of investing. We invest in income-producing assets that we can value. If the market closes for five years, we will do fine five years later as long as the asset does well. This is the way.  

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Our opinions are generally consistent. 1) We don’t predict the markets or the economy. 2) We will consistently be a net buyer of undervalued income-producing securities. 3) We will always have cash or short-term treasury bills during the boom and the bust. 4) If there is a market decline, we will most likely find more securities with a greater margin of safety, thus, we will invest more aggressively (vice versa). 5) We stay within our circle of competence. 

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COMPOUNDING

 

"Compound interest is the eighth wonder of the world. He who understands it, earns it...he who doesn't...pays it" (Albert Einstein). Essentially, we are in the game of long-term compounding.

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LIFETIME OF SACRIFICE FOR HONOR & THE GREATER GOOD OF THE WORLD

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I am very inspired by Anuradha Koirala (Hero Of The Year 2010, Founder Of Maiti Nepal, dedicated to helping victims of sex trafficking), and Warren E. Buffett (who donated over 100 Billion Dollars, 99% of his wealth). We want to build a mini Berkshire Hathaway. Take the winnings from our career and donate to people like Anuradha Koirala to support their vision and accelerate the process of changing the world for the better. Note, I, Rojan Shrestha, rather than buying a fancy house or a Rolex watch, will donate 99%+ of 'my' (not my partner's) wealth to society. My partners can do whatever they please with their winnings. Here are two of my favorite non-profits that do the work of god: 1) Lady Freethinker & 2) Vegan FTA.

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PEACE TO THE FALLEN 

 

Ro Ro Farm’s blueprint is indirectly designed by Charlie Munger, who passed away last year. He is a legend in our book. Peace to the fallen.

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