Smart investment strategy in shipping industry

Investing in older ships for a fraction of the cost and not using them immediately was a smart strategy, as they could be sold for scrap at a profit. By buying ships for pennies on the dollar and waiting for the economy to improve, the investor had nothing to lose. The downside was limited, as selling the ship for scrap would fetch twice the amount paid. The investor recognized the risk in operating the ship, as it could result in a significant loss, but by carefully studying the industry, he identified a smart and low-risk investment opportunity.