Codie SanchezFounder @ Contrarian Thinking

NOW Is The Time To Look For Recession Proof Businesses #shorts

13 Sept 2022 · 1 min

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Codie Sanchez buys boring, long-standing businesses like plumbing and trucking that survive recessions. She uses the Lindy effect: if a business has lasted 5-15+ years, it's likely to keep surviving. Essential services like fixing a toilet don't disappear in downturns.

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If you want to know how to make billions buying boring businesses, I can tell you what I did. The truth of the matter is, everybody's into the hot new thing. The best tech startup, the hottest stock. But how did that turn out for me? I'm always nervous about the young hot thing in the business world. I operate on something called the Lindy effect. Essentially, it means that the longer something has been around, the more likely it is to continue to survive. Most of the businesses I buy have 5, 10, 15 year history in the industry that they're in. They're boring trucking companies, real estate investments, plumbing companies. Because no matter what happens to the economy, if your toilet gets busted, I think you're going to fix it, and you're going to have to pay my companies to do it. And that's how I know how to find businesses to buy.