Be hard to kill:
Be hard to kill.
Hard to extinguish.
Hard to destroy.
It’s the same for companies just as it is for people.
When money is cheap and free, anyone can thrive.
Anyone can survive.
Anyone can figure it out.
When market conditions change, and money is tight, then you find out who the real winners are.
Anyone can take out debt at 0% interest rates and look like they’re doing well.
What happens when rates change and you’re not producing cash?
If your costs, including debt, are higher than your revenue, you’re screwed.
Royally screwed.
You could survive in that environment for the last 15 years when money was cheap and easy.
Most people did.
A monkey could make money the last 15 years.
A lot of people won’t in the next cycle.
Bankruptcies are already as high as 08.
People can’t afford their debt.
Wait till you see it in real estate.
Specifically commercial.
If you think the bank crisis in March 2023 was bad, we haven’t seen anything yet.
But, companies that produce cash will survive.
Especially those with no debt.
Combine that with a community that never stops buying, a cause that feels existential to the future of our planet and a company led by a fantastic CEO who’s built multi-billion dollar businesses, and that sounds like a good investment.
Gamestop is that company.
They released their Q3 earnings and have cut their costs by 96% year over year, while keeping the same revenue.
No debt.
War chest of cash.
Increasing support from a global group of shareholders who have directly registered their shares.
They will survive the coming financial apocalypse.
Not many companies will.
Look for those that do, wait for them to get cheap, buy and wait.
The coming decade will be brutal.
But it will also be filled with opportunity.
Specifically investment opportunities.
I know where I’m allocating my money.
Gold, commodities and companies that can’t die like Gamestop ;).
Be hard to kill.
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