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Daily FI discussion thread – Wednesday, December 24, 2025
byu/AutoModerator infinancialindependence
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Background: I’m a software engineer. My friend runs a small e-stamp business in India.
After 3 years of investing in stocks/funds (averaging 12% annually), I tested investing ₹2L ($2.4K) in his business.
He’s paying 6% per month (72% annualized if sustained). Two months in, consistent payments.
**What surprised me isn’t the return itself – it’s finally understanding something I never got:**
**Why do successful founders keep working 60-hour weeks even after they’re worth millions?**
I used to think: “Just invest in index funds and chill.”
But now I get it. Operating cashflow – actual money moving through a business you control – compounds faster than passive ownership.
**The difference:**
– **My stocks/funds:** I’m betting on someone else’s execution, zero control
– **His business:** He controls volume, margins, customer relationships, and timing
**His e-stamp business:**
– Government-licensed (legal requirement for property deals)
– Earns 1.5-2% per transaction
– Money rotates through 15-20 customers/month
– Small margins × velocity = significant returns
**For entrepreneurs reading this:**
How do you balance building your own business vs investing in others’?
I documented this realization in more detail: https://thewatcherlabs.ghost.io/my-childhood-friends-e-stamp-business-beats-my-stock-portfolio-6-1/
Curious to hear from founders – does this resonate?