Ro Ro Farm Investment Partnership Co.
To the partners of Ro Ro Farm Investment Partnership Co.:
I hope all is well with you and your family members. Happy New Year! Sending blessings your way.
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FAITH – MERRY CHRISTMAS – THE BIRTH OF JESUS CHRIST
Humans may have influenced many factors on Earth, especially, over the last 5,000 years. However, one thing is for sure, humans didn't create the universe. Someone or something else did. That is a fact.
The universe is fascinating. The law of physics says that matter cannot be created or destroyed, however, it can be converted into energy (and vice-versa). Once there was nothing and then there was something. Where did all the 'something' (all matter and energy in the universe) come from?
Young Sheldon once said, “Did you know that if gravity were slightly more powerful the universe would collapse into a ball? Also, if gravity were slightly less powerful the universe would fly apart and there would be no stars or planets. It is just that gravity is precisely as strong as it needs to be."
Plus, if the ratio of the electromagnetic force to the strong force wasn't 1% then life wouldn't exist.
Given the facts above, what are the odds that would happen all by itself? I can't convince you to believe in god. However, the precision of the universe at least makes it logical to conclude, there's a creator.
EVERY PENNY IS THE BEGINNING OF THE NEXT BILLION
Ro Ro Farm treats every penny like a seed that one day grows into a tree, which provides fruits and shades for the partner's family. Every penny is the beginning of the next billion. Did you know that a single gram of uranium-235 can produce as much energy as burning about three tons (3 million grams approximately) of coal? We treat every penny like it is a gram of uranium-235.
DISCLOSURE OF INVESTMENT
One of the main reasons we don’t disclose our investment is “because it’s really hard to become a better investor by getting ideas from others. Worse, once you share ideas of your own, hopping off as the story turns south will stifle even the most open-minded, egoless people out there” (Big Mistakes: The Best Investors And Their Worst Mistakes, Michael Batnick).
Further, multiple psychological biases affect investors when investments are disclosed. Particularly, psychological bias from what Charlie Munger refers to as bias from commitment and consistency. Dr. Robert Cialdini’s book Influence greatly elaborates on psychological flaws in humans.
Lastly, we regard investment ideas as proprietary information, and they belong to Ro Ro Farm’s partners. We are not an investment advisory organization. It is counter to the interest of Ro Ro Farm’s partners (including me) to talk about securities we own.
ANOTHER REASON WE AVOID CRYPTO
Some of the reasons we avoid crypto currencies are: 1) Crypto currencies are not an income-producing asset. 2) We believe no one can value cryptocurrencies. 3) We believe cryptocurrencies are unethical because it's used in the black market for kidnapping, human trafficking, drugs, etc. 4) Its most likely a bubble. 5) We listen to SEC Chair Gary Gensler, when he said, “too many times in the crypto markets, we’ve seen significant investor losses due to fraud.”
RISKS
We believe when the price of a stock goes down the risks have decreased ‘only if’ the intrinsic value of the stock has not decreased. Note, that if you invest $1,000 in a stock trading at $50 and a stock trading at $3, then the risk that you will lose all your money in both stocks is the same if both stocks go to $0.
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RO RO FARM Co. GOING FORWARD
We believe the economy and markets are strong. However, that can change fast and unexpectedly.
Our portfolio is undervalued relative to the S&P 500. We believe our portfolio will perform very well in the future. However, given the risks of the portfolio, I will be returning the money of many partners. Thus, I will focus on managing more of my family’s and close friends' money.
RO RO FARM CO.’S PERFORMANCE
Below is our return profile compared to the market since inception (2018). For the year 2024, we deserve the tomatoes. We underperform our benchmark index S&P 500 index by 12.94%. This is not good. Our return for the year 2024 was +12.08% (+10.56% for Limited Partners). However, we are not worried. If the trend continues for the next five years, we will return all partners' capital.
Compounded Annual Returns Since Inception (2018):
December 31st, 2024 Rojan K. Shrestha
General Managing Partner
