Jason Fried is a software entrepreneur, author, and co-founder of Basecamp, a popular project management and team collaboration tool. Readers can learn about remote work, productivity, and business management. With articles, talks, and books, Jason Fried shares  insights and best practices for building successful remote teams and fostering a healthy work culture.

Jason Fried

A successful entrepreneur advises a young founder who recently sold his business for $2M to prioritize capital preservation over aggressive investment or reinvestment. The key recommendation is to keep the money safe in low-risk accounts rather than pursuing high-return opportunities, emphasizing that maintaining wealth is more important than growing it aggressively at a young age.

What to do with $2M?

depends on how young we’re talking, if he’s in his 20’s he’ll never have more time to start otehr businesses and make money. If you’re young, you have time, something you’ll not have when you grow older, so go ahead and do whatever yo ucan to make money, i didn’t had this advice when i was in my 20’s now i’m having to make for lost time in my 30’s and i’m getting tired

Not a bad piece of advice, but I’d say save half. As Iago says here, 20s and 30s are the time for risk. As for where to put it, investing in growth, not a savings account, is best. $1M in growth 20 years later is lifetime retirement funds.

People with wealth usually say the opposite! He should invest in something like the S&amp;P 500, buy land, or put it somewhere that actually grows. Letting money just sit there is bad for both the owner and the world.
I’ve never had a million dollars piled in front of me, but I’ve had it in other currencies — and trust me, keeping it idle is a mistake. It loses value every single day.
Later, I started investing in the S&amp;P 500 and some crypto. When I went through hard times and almost went bankrupt, those investments were still there — and they’d actually grown in value.
Also, from an Islamic point of view, earning interest (riba) isn’t allowed, so it’s better to invest in land or long-term assets like index funds. That way, you avoid direct riba and still grow your wealth over time.

so underrated comment! you simply win by trying not to lose :)

I like the advice, not for the part about keeping money safe and not losing it, but more for putting it away so he can focus on the next big thing without the pressure of doing it for money or distraction of how to manage the money.
Focus and planning in your 20s, without the pressure of making money, is a great gift that he cannot take for granted.