Should one buy the weird hen that produces only 10 male chicks per month or invest all his money in shares? entrepreneur how earn by blogging blog

This is the data (some are hypothetical, some are real values):

You have $1000. You don't eat so you have no cost for yourself.

You can only either buy shares or buy the hen that bears only male chicks. In this weird world, the hen can only produce male chicks. Where the hen come from, is a mystery.

People will buy the male chicks for their own reasons so there is demand.

The hen costs $1000.

You can buy the hen via down payment but

If you use the credit card to buy the hen, the interest you'd have to pay to the bank is a straight line 1% per month and the loan period is 10 months. So, your monthly cost will be $110, for 10 months.

Fortunately, you can sell the little male chicks just in your building ie at your own house but you have to work because your hen only bears children if you give it care. You have to talk to the hen in a weird way for 8 hours a day and sell the chicks by yourself, so this isn't a passive income but you like talking to the hen. The estimate profit from doing this is $30 a month. (No other cost because you hen eats worms in your yard by herself. So, all you have to do is just sit down and talk to the hen to make her produce baby chicks. Your only cost here is time. And the hen never gets illnesses and stuff. So, absolutely no cost - nothing else apart from your energy and time.)

But if you talk to the hen and produce chicks, you will gain experience and one day probably you'd become a famous chick maker and start charging premiums but this is still a long way to go - it will be like 10 years till you become a famous chick maker who can sell his chicks and make $300 per month. (Imagine a world where there's a certain group of people who pay premium for the chicks made by some famous chick maker. And in this world, you cannot turn the chick-making into a business either. You'll always have to talk to the hen to produce your version of chicks.) The number of little chicks the hen produce is also only limited 10 chicks per month. Right now, as you're inexperienced, you need to put in 8 hours a day to get the maximum 10 chicks. But as you get more experience, you can produce 10 chicks a month with as low as 3 hours a day.

If you use the credit card to buy the hen, you will have your full $1000 in your hands in the beginning of the month and you can invest in shares, and though the investment the return will be reduced overtime because you still need to pay for the $11 monthly.

So, lets say the shares rise in value by 2% every month and below is your return on investment on shares for 10 months.

1. Month1 --- 2% return on the $100 investment in shares = $2. You pay $11 to the bank. Now you have $81 left.

2. Month2 ---- 2% returbn on the $81 investment in shares = $1.8. You pay $11 to the bank. Now you have $69 left

3. You repeat this till month 10.

Now by the end of month 10, because of depreciation, the value of the hen is now $800 (20% depreciation). After 5 years, the value of the hen of course becomes 0.

Would it be a good idea to just invest all the money in shares, or get a hen using a credit card while buying and selling shares month by month?

submitted by /u/BigBlueBawls
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