boring businesses will OUT-PERFORM tech companies this decade

Bitcoin is the future, man. Oh my goodness. No, we don't like the oil companies. That is so insulting. You say. Well, I'm insulted you called my business boring. Oh, 5,000% annual growth rate. Those pure profits boring businesses I'm all on board for.

Everyone's always looking for the next Tesla, the next Google, the next Facebook. But I'm here to tell you today that the boring businesses are going to outperform these high tech companies or over the next decade. Yes, the person who cleans your pool, washes your truck and mows your lawn are going to outperform in terms of business success and monetarily gain over the next decade. And today I'm going to talk about that. Now, obviously I am very biased because I own Augusta Lawn Care and you mow lawn. So of course you're going to say everything is good. Okay, well, I've also gone on record saying that the next few years are going to be the hardest for small businesses that we have seen for a very, very long time. So I've been on record saying that, but with a big asterisk next to that. I want to explain the fact that over the next decade, not the next year or two, when I think it's going to be very, very difficult, but in the next decade, small businesses that do boring things are going to be the ones that outperform The S&P 500, these massive tech companies that we've looked up to. And here's why. Over the past 10, 15 years, the likes of Google and Facebook and all these other companies, their valuations have taken off and they're making tons of money and everyone wants to be the next Facebook. And so what do they do? They pile money into companies like Uber, these unicorns of Silicon Valley. Unicorn is a billion dollar company, usually means they just lose a bunch of money. They're diluting shareholders, issuing stock, they lose money hand over fist and you literally have no value in the company. And yet they are worth billions of dollars. Uber literally loses billions of dollars every single year and is worth tens of billions of dollars and is looked up and revered as like a success story. And they've never made any money, they've never made any profit. So in the environment of low interest rates, very speculative environment, in a bull run when everything is going up, that is when those type of companies do well. The type of companies that can just inflate and just create money like the government does by just issuing more stock to their shareholders. This is dilution. This is a company that is Ultimately losing money. Unprofitable. And yet the person mowing the grass, the person cleaning out the gutters, the person cleaning the floors can get a respectable 10, 15, 20% profit on every single dollar that they earn. And so the next 10 years, in my opinion, is not going to be the next opportunity of getting electric vehicles or solar or we're going to get some high tech thing. It's going to be the boring, boring companies. And I've said before, doing business should be boring. Because guess what? Having a business that runs on systems creates a predictable profit margin becomes boring. I was talking to one of our franchisees at Augusta Lawn Care the other day and he's like, man, I'm kind of bored. Like, you know, you get everything on systems. You got, you got, you got people running your business. Everything's kind of working for you. Like it gets boring. Like, what do you do next? That is a good thing because when you're always chasing the next high tech thing, you're losing money hand over fist. Those are not the companies that in this frugal decade, this decade where now investors like, hey, you know what? Profits actually mean something. Oh, interest rates are going up. Guess what that means. You need to have profits you can no longer run off of. Just a good story and we're going to raise billions of dollars on this great idea that's not going to fly. But the companies that are willing to roll up their sleeves do blue collar work that no one else wants to do. In my opinion, the best job security is doing things that people don't want to do. And people don't want to clean out their cars, people don't want to mow their lawns, people don't want to trim their bushes. People don't want to clean their houses. And that is where the job security and the profits are going to be. If you look at a company like Berkshire Hathaway that for over the past 10, 15 years has been the laughing stock of this high tech environment where the founder, Warren Buffett, it was like, oh, he's lost his touch, you know, he can't invest anymore. He's investing in all these railways and natural gas and petroleum companies and mining. Like we don't, that's just so old fashioned. Like he just, he hasn't been, he's been outperformed by the s and P500 since 2010 and all this other garbage. But guess what happens when everything hits the fan and everyone's screaming and running for the exit? Guess who's winning? The boring companies. The Ones that have demand for decades that you can look at and have a track record of. There's people that need the service. Guess what? The grass will still grow even in a recession. Oh, people's houses will still need clean in a recession. Oh, my goodness. Even if the interest rates go up, people are going to still need to clean their cars and wash their laundry. Oh, these are the boring businesses. Ones that have tried and true demand. We don't have to look at the past five years and see growth projections of people on the Internet. No, we can go back 10, 15, 20, 50, 100 years and realize that this industry has been here for a very long time. And people are like, oh, well, that just means it's boring and it's stale and there's no opportunity and it's a crowded market and there's all sorts of competition. I am thrilled out of my mind getting into a business that has a lot of competition. What does that mean? It means that demand is absolute. It means demand we can depend on. We know there's plenty of customers that need that service and it's not going to be the next shiny thing and then gone the next moment. Like Nikola, they create this weird car truck thing, roll it down a hill and Somehow they're worth $80 billion. That's crazy. Guess what? Mowing a lawn, you're not going to have a massive keynote and you're not going to have a massive news press and be on the front of magazines. You're not going to get that. But you're going to make consistent profit margins and you're going to invest in things like trucks and dirty equipment. And hiring is not fun. You're not hiring tech engineers. You're hiring people that know how to work hard and in the heat and actually get dirty. It's not as fun and flashy and sexy, but guess what? That's where profits are made. In the unsexy work, in the unsexy business. That's where success, success is built. You say, well, I'm insulted you called my business boring. That is so insulting. Here's the four things that make a business boring. And in my opinion, these boring businesses will be the ones that outperform the stock market and these high growth tech companies like Tesla and all these other great businesses, but they're going to be outperformed by these small, dirty, boring businesses. First one, I've already talked about it. Consistent demand. That we know for generations, for decades, these industries have been around. Number two is they're simple, they're not complicated. It doesn't take a rocket scientist to explain it to somebody. And they're easy to sell because everyone understands that the grass needs cut. Everyone understands that their truck needs clean. Everyone understands that their gutters need to be cleaned out. These are all simple things that you can easily express to someone who has a consistent and proven demand for the service. Number three, if you have a boring business, you typically have consistent profit margins and very boring growth trajectories. You don't go 10x year over year. Oh well, the first year we did 1 million and then the next year we did 3,55 million. Then the next year after that we're going to do 3 billion and then the year after that we're going to have $500 billion. That is not sustainable. That is not a company that's boring. It's flashy, it's tech. I understand that's what everyone wants and we've kind of idolized all these companies that lose money, are massive growth, suck all the cash out of the investors pockets, never return capital to the shareholder. And somehow that is like the epitome of entrepreneurship. And guess what? It's not. Generating a profit is the epitome of entrepreneurship. Creating jobs for your community that are sustainable and are not laying people off like Coinbase is now this. Oh, Bitcoin is the future man. Okay, well Coinbase just laid off a whole bunch of people. Voyager Digital just went bankrupt. So for all these big flashy tech companies that worth billions of dollars, they're not going anywhere. It's the boring businesses that will be here in 10, 20, 30 years. The ones that pump oil. No, we don't like the oil companies. Okay, but what about the companies that make tires? Guess what? Tires aren't going anywhere. These are the boring businesses that will absolutely be here in decades to come. And consider produce those profits and do not have the 5,000% annual growth rate. It's not happening in a boring business. So that's the third thing. The fourth thing is the boring companies, they don't have a monopoly, they don't have the first mover advantage because their industries have been around for a very long time. So boring businesses, it's not new. You're not the first one. You're like, I'm such an innovator, very hard to innovate to a massive extent in a boring business. You might be able to tech, enable the business and add automations and technology to it, but you're not going to make a new category in cleaning windows. You might be creating new gadget enable some technology, make it more efficient. But you're never going to revolutionize how you wash a window. And the way that a window is created, it's not going to happen. You're going to clean windows, you're going to make a good margin, you're going to hire people for an honest wage and they're going to be able to grow and be a starting point of their career and they're going to move on. So that fourth thing is what? Lots of competition. And I was like, oh no, you're going to get into a market where there's not much competition and you can have 95% profit margins. Okay, look, the software as a service and everyone having these valuations with these massive profit margins, look where that has gone. Even in the past six months in the stock market. Valuations being cut by 80, 90%. Why? Oh, because we started to remember not, not everything always goes up. That no, innovation doesn't pay the bills, profit does. Cash flow pays the bills. Real assets like a truck and equipment that produce revenue for the business and real jobs, they actually create value for the shareholders and for the employees and for the community. So my question to you is, are you starting a bit boring business or are you getting wrapped up in all the hoopla around technology and the next shiny thing and you got to grow by 5x a year because guess what? The businesses and the industries that will stay tried and true to solid profit margins, serving the customer better and incrementally becoming better every single year, those will be the businesses that stay around for decades to come, consistently have those profits, those pure profits. The cash flow is what I'm looking at. And people are just starting to wake up to that right now. And that's why you're seeing what's happened. The stock market, real estate bubbles being popped in, crypto and NFTs, and everything we've talked about is what goes up, up, must come down. And that's what we're seeing right now. And so I'd rather just have a nice little going up instead of this because guess what happens when you go up that fast? You go crashing down. And that's what we're seeing right now. So the boring businesses I'm all on board for this decade, we're going to crush it. Next couple of years are going to be some of the worst though, so buckle up.