Thinking out loud.

It doesn’t seem the daily economic news can get any worse at this point… though it seems we’ve all been saying that for a couple months now. As I observe the the actions companies are taking as of late however, I really see a lot of opportunity out there. Am I crazy?

Every company I interact with is cutting costs, and dramatically. Capital spending and investment spending is not happening anywhere as far as I can tell. For this reasoon, I think it is an amazing time to be, as the Oracle of Omaha says, “greedy while others are fearful”. With no investment spending and no capital projects, most competitors are essentially standing still. When would there ever be a better opportunity to gain on or pull away from the competition?

This should be a lesson in the importance of strong capitalization. Any business that has the resources to invest and build right now is realing huge leverage on those investments. So I wonder, why is no one doing so?