Monday, January 28, 2008

Applying Modern Risk Management to Organic Gardening

Managing a tiny garden is like managing your investment portfolio. You need initial capital, thorough planning, knowledge about the external environment, proper asset allocation, regular maintenance, great care, risk management skills as well as good timing for harvesting.

Like investing, gardening is all about regular maintenance. You not only need to do research to decide what plants (investment) to grow (invest), but should keep a close eye on weather condition (news) that could affect their growth (value). If growth (stock performance) does start to slip, you must be prepared to make changes to cut loss.

Similar to investments, different plants have different life cycles. Some plants are more susceptible to insects while some are more susceptible to adverse weather. Life is full of risks. Proper allocation helps diversifying the risks.

Even with a garden as tiny as mine, avoid putting all the eggs into one basket. Instead, try growing companion plants. Companion planting is based on the idea that certain plants can benefit others when planted next to, or close to one another. It may benefit certain plants by giving them pest control, naturally without the need to use chemicals, and in some cases they can give a higher crop yield. This website summarizes a list of natural companion plants.

That said, unlike investing, growing risky plants usually do not result in good return, especially for an amateur gardener like me. So, avoid growing high-risk plants which are susceptible to diseases, insects or adverse weather.

Gardening is a lot like portfolio management. Both require patience, discipline, and faith.

Wish all of you have a good harvest, be it investing or gardening! :p

1 comment:

Anonymous said...

i do enjoy the harvest.