Opportunities In Chaos

The world is coming to an end. This is the impression that we are given by the media. Each day, the market drops another astronomical number. At the same time, the government commits another $100 Billion to alleviate the recession. It seems that there is bad news on every front.

Recently, I was discussing the business climate with a friend of mine. He was telling me that his company is in position to grow next year. This was an astounding statement to me considering that the company is over 40 years old in an industry that most consider to be mature. For anyone to have growth in this environment, let alone double digit which my friend claims, astounded me. Of course, I asked him to explain how.

To begin with, this company is debt free. It owes money to nobody. The banking crisis is entirely a situation that revolves around debt. Nobody was upset with Lehman Brothers sales or revenues. It was their debt that caused the panic. Being debt free is a ticket to success in this environment.

The debt issue is affecting a number of his competitors. Many of them are starting to fold. This is a situation that is also starting to play out in the automobile industry. The largest Chevrolet dealership in the United States closed their doors. My friend mentioned how his industry became too saturated the last 5 years. Now, there is a thinning of the competition.

Finally, there is consolidation occurring within his industry. A number of the national companies were bought out by manufacturers. This is reducing the number of companies in each market. Recently, the largest dealer was purchased by a manufacturer, a move that will eliminate one in each area. This is the second time this year, and the third in the last two, that this occurred. My friend mentioned how three big competitors were eliminated through this process.

How does this apply to you? I write this to show you there are opportunities regardless of what is occurring. In fact, the more upheaval, the greater the potential for one who is looking. Warren Buffet bought into GE for a song because they were desperate. The financial chaos presented him with a buying opportunity. Therefore, stop fretting about how bad things are and getting creative. There is a silver lining in all that is going on if you are willing to seek it out. Those who do stand to profit substantially.
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