Short dialogue (YouTube short) advising where to invest during an economic downturn. Speaker A recommends investing in high-cash-flow Internet businesses with low capital expenditures (e-learning and other online businesses) because they have no inventory, rent, or supply-chain risk and their costs are largely variable and adjustable; also echoes Buffett’s advice to increase earning power. Speaker B lists assets perceived as risky (bitcoin, NFTs, stocks, real estate).
Chapters
Where do you put your money? Bitcoin on fire? NFTs dying. Stock market crashing. Real estate probably next. Interest rates nightmare.
Under your bed. I'm telling you, fiat currency burning, you know. Yeah, well, Warren Buffett talked about the two things that you can do in an inflationary period is you can increase your earning power and you can invest in businesses that have low capital expenses. Our businesses that we invest in are Internet businesses and so a lot of e learning but Internet businesses in general, so they have no inventory, they have no rent, they have no supply chain issues. Like the only costs that we have are mostly variable costs with media and even the fixed costs of like employees. As terrible as it sounds like if revenue drops below a certain point and the ratio of clients to staff is not right, like you can adjust it. Whereas like a lease or a big machine that you bought that you have a ten year thing on, it's a lot less flexible. So for us we invest in high cash flow Internet businesses that are low capex and so that's kind of the investment thesis and it's also what we're good at.
