Bridger PenningtonFund Launch & Investment Expert

Best Market For Investors | Bridger Pennington

22 Jan 2024 · 0 min

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In this segment, Bridger Pennington argues that while public markets are largely efficient—leaving little room for excess returns—alternative markets such as small‑business acquisitions and residential house flips are typically inefficient. These inefficiencies create sizable arbitrage opportunities that even average or semi‑average investors can exploit by adding value (e.g., renovating a house or improving a small business) and then selling for a profit. Repeating this process can effectively become a repeatable business model, offering a path to solid returns outside traditional public equities.

Most public markets are almost near perfectly efficient. Other markets, though, like a small business acquisition or a house flip, are typically inefficient markets. In inefficient markets, there's a lot more delta for even average or semi-average investors to come and make good money. They can come in, they can buy a house, add value to it, and sell it for more. They come and repeat that process and do it over. It almost becomes a business because of how good that arbitrage play is.