Typically there is a lot that can go wrong with plantation type businesses:
- prices at the end can fluctuate
- substitutes for use of product
- problems with crop (weather, disease, pests, etc)
I don't know sandalwood well enough. But I would say as a guide based on kind risks in plantation businesses, even if you love the business, limit it to max 10% of your equity portfolio because some of these kinds of risks can uncontrollable.
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Typically there is a lot that can go wrong with plantation type...
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