The BOOM money market I'm jumping into
Here's why I'm building a $250m factory
A few weeks ago, I took my son Asher to a prestigious international hockey tournament in Esbjerg, Denmark.
He won best player of the camp! Not because he was the most “talented” player.
He didn’t skate the fastest, hit the hardest, or score the most points.
The Best Player Award exists because of one powerful idea…
I even started writing it on his stick for games:
In other words, “play on my team and we’ll win together”…
This is NOT “you play on my team … and I WIN no matter what.”
What does this have to do with the dealmaking business? Everything!
Whether you’re the entrepreneur or the investor, it takes a team effort to win the biggest prizes. Everyone knows: TEAMS WIN
And you need a “team” you’re planning on raising and deploying any capital in today’s horrible environment where even the best entrepreneurs are having a tough time:
Friends of mine with 15-year track records in commercial real estate development are paying 10% for debt and providing 20-30 million of personal guarantees (PG’s) from their own balance sheet …
TODAY - everyone wants ALPHA, which is not “How do YOU win”, …
…. but how do WE WIN?
WHERE IS THE “ALPHA”-level “We all win” RETURN?
In my investments “Alpha” shows me how well I’m doing relative
to a broad benchmark index.
In otherwords, Alpha answers: “are we crushing it, and getting a big return for all the time, energy, money we’re putting in???”
A large positive Alpha is what I’m
shooting for every time.
And high-Alpha used to be EVERYWHERE:
A few years ago …
It was The Era of Easy Money (2019-2021)…
The ALPHA-return (the juciest profits) usually came from some other sucker in the deal. There was capital everywhere, so it wasn’t too hard to find newbies for any deal eg. NFT, Bitcoin, Crypto, Synthetics, Space Tourism, Vertical Farming … whatever.
Roll the clock forward to September 21, 2023 …
How do you make money in the new Era of:
High Interest rates?
High cost of labor?
High inflation and political uncertainty?
You’ve got to do it the hard way… Increasing productivity and making better goods and services – not crypto garbage nonsense.
Well, unless you’ve been living under a rock, you already know that America is looking to rapidly re-shore manufacturing and re-industrialize our economy.
FOR ME, this is an area where my money can step into Alpha. Sure, I have to work hard, this is not easy or free government subsidies. But there’s one thing in US Manfacturing that I love more than anything else:
HUGE DEMAND / LIMITED DOMESTIC SUPPLY
Construction spending related to manufacturing reached $108 billion in 2022, the highest annual total on record – more than was spent to build schools, healthcare centers or office buildings.
New factories are rising in urban cores … with much of the growth coming in the high-tech fields backed by billions in private equity and government incentives.
And if you’ve ever thought you yourself – “Hey, I wonder how I could make money on all these factories that are being built,” chances are, you’ve heard all about semiconductor factories, electric vehicle factories, and battery factories.
But here’s the “Made in America” story you haven’t heard:
If you’re looking for the best way to play the American Manufacturing Boom, the single biggest untapped investment opportunity I’ve ever discovered is hidden inside this little known, $5 billion sub-market that has almost ZERO competition!
Want to know more about it? If so, you should come to this private presentation I’m hosting this Friday @ noon pacific, where I’ll be talking about where I’m investing my own personal money…
And how you can invest alongside me in one of my portfolio companies I couldn’t be more excited about.
I’ve already put more than $1m of my own personal capital into working with this 1,000-person manufacturing powerhouse I discovered ~3 years ago on an unplanned vacation to Italy.
I won’t tell you exactly what they do, but they sell high-tech, precision manufacturing tools to factories around the world that make a very specific type of home good - one that you and your family probably use more than anything else in your home.
This company that I’m investing alongside generates an estimated $400m in revenue per year, and commands – not joking – a 95% market share.
When I met with the management team the first time, I asked them how they were able to so completely dominate the market from a small village in Italy no one has ever heard of?
It’s because Italy just has a different culture than America does when it comes to skilled labor and manufacturing.
It’s not like a Silicon Valley company that will try to hire the most elite engineers from all the name brands places…
Their talent is all homegrown.
And because they didn’t try to outsource their manufacturing, they’ve maintained their uniquely Italian culture of excellence in precision manufacturing.
I spent 2-full days in their 1,000,000 sqft facility learning everything I could about the company.
And when they told me they wanted to build a new factory in the US – a factory that would be the first and only factory to deploy their latest technology, a technology that would completely shatter the limitations of the Iron Triangle (pick two: good, fast, or cheap).
If this technology worked the way they said it would, I saw a way to make American made goods that are higher quality, faster to deliver, and cheaper than foreign products.
It was like I’d stumbled upon that sword of Excalibur, stuck in a rock, just waiting for someone to pull it out and become king of this $5 billion market.
At first it seemed too large for me to get into. But once I dug in, I realized, “I can do this.”
I had almost passed on what could be the deal of a lifetime.
When I told people I was thinking about doing a deal with an Italian manufacturing company in 2020/21, to build a factory … in the US, they thought I was insane.
Why would you build a factory in the United States?
Nobody does that any more … right?
Because after three years of working with this Italian company, I am 100% committed to attacking and owning this little known $5b manufacturing market with the full force of the Pitch Anything Playbook…
Want to find out about this deal, and what else I’m investing in and how you can participate?
This Friday, Sept 22nd @ noon Pacific time, I’m hosting a private presentation where I’ll share the details (go here to save your spot).
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