Showing posts with label i'm in the empire business. Show all posts
Showing posts with label i'm in the empire business. Show all posts

Thursday, October 17, 2013



Walter White aka Heisenberg
Breaking Bad

If you want to Invest Like A Farmer, it is important to know when to plant and when to harvest. So when is a good time to deploy seed capital? As a general rule of the green thumb, it is a good time to deploy seed capital when monopolies "go on sale" (what Wall Street typically refers to as a sell-off, correction, or adjustment.) Having a grocery list of stocks you'd like to buy handy is helpful; it helps identify in advance these empires that can be had for a discount. 

A great example was found today in a major transportation company that controls significant land routes west of the Mississippi. Remembering one of the fundamental guidelines, mainly that boring is underrated, this proved to be a nice time to buy. By definition, a monopoly is an empire with branding, scale, scope, moats, pricing, and a variety of other advantages over its competitors.

As financial famers, we always want to have reserve seed money and a shopping list available of potential buys at our disposal; a significant return can often be made on a purchase of a distressed monopoly that is then held and has its dividends reinvested. Boring, and potentially very sexy with our goal of securing a compounding rate of return that ultimately goes exponential. The opportunity of a lifetime usually crosses a financial farmer's plow twice a month, be prepared to sow those seeds.