How Unprofitable Companies Stay In Business

Рет қаралды 787,279

Күн бұрын

Some firms sustain their businesses by taking on more debt that they likely could never repay. Economists call them zombie companies. When compared to their peers, zombies are smaller in size and deliver lower returns to investors. These companies distort markets, keeping resources from their fundamentally sound competitors. Banks and governments keep zombie firms alive with bailout loans. As the Fed resets the economy with higher interest rates, many zombie firms are filing for bankruptcy.
Chapters:
00:00 - Introduction
01:46 - Zombies
03:35 - Bankruptcies
06:05 - The Lost Decade
07:15 - Debt and bailouts
Produced, shot and edited by: Carlos Walters
Animation: Alex Wood
Supervising Producer: Lindsey Jacobson
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How Unprofitable Companies Stay In Business

Пікірлер: 795

@lunchbox6576 6 ай бұрын

I worked for yellow for seven years. The CEO and other board members never failed to give themselves a performance bonus. They also spent money on side projects to avoid loan repayments. The company was horribly mismanaged for over 15 straight years.

@Tricia-Tricia 6 ай бұрын

Wow! 😲 I can't believe what you've witnessed during your time at yellow. 🙀 It's pretty disheartening to hear about the CEO and board members giving themselves performance bonuses consistently, while the company was clearly mismanaged for such a long period of time. 😞 It seems like they were more concerned about their personal gain than ensuring the success and growth of the company. 📉 Hopefully, things have improved since then. But nevertheless, your dedication and commitment for seven years is truly commendable! 💪👏

@jeffreyrudolph5061 6 ай бұрын

Predatory firm(s).

@Ratinevo 6 ай бұрын

That is the formula, sadly. The guys get paid well even when the companies die. It’s called value extraction.

@MrSupernova111 6 ай бұрын

Capitalism at work. Greedy executives laugh all the way to the bank while the rest of us are left bankrupt.

@frantzen5047 6 ай бұрын

AI Bots in KZbin comments? Never seen that before lol@@Tricia-Tricia

@foobarFR 6 ай бұрын

A famous french writer once said : "you don't die because of debts. you die when you can't get new ones". The founder of Altice said : "When I got my first 50k buisness loan, I couldn't sleep - if I failed, I would have lost everything. Now I owe more than 50 billions and I sleep very well - my bankers don't".

@scoops2 6 ай бұрын

"If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem."

@jakovcu 6 ай бұрын

@scoops2 in recent times it is government that will pick up bill

@omphilemangena3950 6 ай бұрын

@@scoops2😂😂😂😂😂

@andybaubau5961 6 ай бұрын

he got bery rich and don't care anymore......a common story of zombies companies.....and govrnment sleep

@andybaubau5961 6 ай бұрын

he got bery rich and don't care anymore......a common story of zombies companies.....and govrnment sleep

@tomaszcz_k 4 ай бұрын

In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

@WiolciaMrozowska531 4 ай бұрын

I suggest you offset your real estate and get into stocks, A recession as bad as it can be, provides good buying opportunities in the markets if you're careful and it can also create volatility giving great short-time buy and sell opportunities too. This is not financial advice but get buying, cash isn't king at all at this time!

@AnnaFed015 4 ай бұрын

Investors should be cautious about their exposure and be wary of new buys, especially during recession. Such high yields in this recession is only possible under the supervision of a certified financial counselor.

@stanleyzac1648 4 ай бұрын

Exactly! Which is why I appreciate giving a financial counselor the power of decision making. Giving their specialized expertise and education, as well as the fact that each and every one of their skills is being centered on harnessing risks for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it's practically impossible for them to underperform. I have made over $1million working with John Desmond Heppolette, for more than five years.

@AcaradaRiquezaHUB 4 ай бұрын

I've shuffled through a few financial counselors in the past, but settled with John Desmond Heppolette. The strategy he use is recession-proof, more specifically profit-oriented, and most likely, you'd find his basic info on the net, he's a renowned advisor.

@MatgorzataZielinska 4 ай бұрын

Thanks to Sir John Desmond Heppolette, my investments have flourished. However, the ultimate determinant is the amount of capital you invest. A significant starting budget increases the potential for higher gains.

@KillDeathRatioDJ 6 ай бұрын

The problem is they let small zombie businesses die but when large businesses go bankrupt the government swoops in and bails them out even if they are malicious or did wrong with the profits.

@tayjones8552 6 ай бұрын

Well said!

@DG-hw8it 6 ай бұрын

It's about choices...🍀

@QueerdoLoc 6 ай бұрын

The whole thing is a ponzi. Its working as intended.

@chandlerfreeman1633 6 ай бұрын

It's simple, the big firms, investment banks lobby and pay congress men campaign donetions, plus provide inside information for trading etc exa. Nancy Pelosi. that way politicians will always bail them with public money if they are going under, whilst small shop owners can only pay local politicians/goons for protection who don't have much say in loan weaver

@benzpinto 6 ай бұрын

big evil wins most of the time

@yung1448 Ай бұрын

CNBC is amazing. “How to build wealth”

@yung1448 Ай бұрын

The first step to building wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.

@yung1448 Ай бұрын

I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire soon. Give this a try and attain good-returns.

@yung1448 Ай бұрын

researvh the name, if you care.

@yung1448 Ай бұрын

REBECCA MARTIN WATSON

@sarahfletcher01 Ай бұрын

l’m amazed to partake on this, lt has rekindled the fire to my goals.

@vladimirofsvalbard9477 6 ай бұрын

Cheap debt and low corporate taxes ONLY give incentive for bad products. If I want to create an LLC. I would have gotten a low interest loan, sold a bunch of Chinese garbage in a market trend for 18 months, SHORTED by own company, and then allowed my company to dissolve into bankruptcy. I and my board members would have gotten rich on our profits, gotten additionally wealthy from our short positions, and then walked away unscathed after using the chapter laws and making the tax-payer fund our collapse. This model has been extremely lucrative since the 1980s.

@Burnenwhysee 6 ай бұрын

The bigger question is how many of these "zombie" companies are propping up the employment rate. Likely a good amount. If they go, employment will suffer. I've personally worked at at least 2 companies where the finances didn't make sense, and they should have gone out of business (one of them did)

@Neckername1 6 ай бұрын

I meancif they go, employment should suffer. The jobs were not necessary anymore. Otherwise they would be valued higher and therefore would still be making money.

@cv990a4 6 ай бұрын

Those zombie firms are providing *some* service or product that someone else is buying. It may not be a great service, it might not be a great product, but they are generating revenue somehow, reflecting they do have customers. When that firm blows up, those customers will go somewhere else to some other firm whose revenue will thereby increase. That other firm will thus hire. Point being that at least some of the unemployment created by dying zombie firms will be offset by increased employment at firms that benefit from zombie firm collapses. It won't be one for one, but it won't be zero either. In the case of Yellow Trucking, for instance, the offset might be quite high. More-or-less every truck delivery that Yellow did will have to be backfilled by other trucking firms. It might not be 100%, but it was probably pretty close to it - probably 90%+.

@freddyfriend5462 6 ай бұрын

In a socialist economy everyone is employed. 🤣

@ThinkBeFree99 6 ай бұрын

Thata cause the people in carharge just care about paying themselves and not necessarily making things work. However if this means nitmal people can stay employed than that is best

@Jeez001 6 ай бұрын

Most of zombie firms are high growth tech companies and most of jobs are white collar jobs.

@cjezinne 6 ай бұрын

Socialism for corporations and capitalism for the rest. We pay to keep them alive and they tell us to “lift yourself up by your bootstraps” to be like them…

@cesaravegah3787 6 ай бұрын

I am pro-freemarket and yet think the companies like Amazon and Uber using bussines models where they lose billions of dollars to destroy small companies on the hope of achieving monoply level control of the market shouldnt be alowed to do that

@singhmaster4 Ай бұрын

Exactly, that is how these companies become giants. They are pumped with so much money that they don't make profits for years. Even when the business is not making profits, the CEO'S are still making millions. It's a scam system. Look at Dennys restaurants, they haven't turned a profit in like 15 years I think but they have locations all over USA.

@noclicheplease 26 күн бұрын

Especially Amazon. They gather data about fast moving goods and have those same goods manufactured by some white labeling company and sell it under Amazon Basics label by undercutting sellers on its own platform.

@omgness1234 6 ай бұрын

I’m surprised it wasn’t mentioned how these companies just rolling their debt into more loans to the point that their loan payments exceed their profits. These companies are basically alive just to make loan payments on their debt. At that point, someone has to call it quits

@xiphoid2011 6 ай бұрын

You can't borrow if no one is willing to lend to you, especially when the lender sees that you don't have the means to pay the higher interest.

@HappyCamper870 6 ай бұрын

@@xiphoid2011that's why these issues build up in lower interest rate environments and expose themselves once interest rates are raised. As long as interest rates are low the zombie companies can continue to exist.

@blueoval250 6 ай бұрын

Sounds like the US government

@saucyrossy3698 6 ай бұрын

@@xiphoid2011 This. Investors (esp institutional investors) need to take the lion's share of responsibility for this. "Due diligence is hard and time consuming and expensive and we might miss a big opportunity if we move too slow" is a horrifically bad excuse, but easy to do with other people's money. COmpanies raise money...its what they do...esp when they are struggling. You could almost forgive them for it...but blindly investing money in a flim-flam machine is much less forgivable.

@cv990a4 6 ай бұрын

Extend and pretend.

@TommyDangs 6 ай бұрын

750,000,000 bailout and yet paying $234 back… and yet when I’m late on my mortgage my house is in danger 😂

@mattweiss7645 6 ай бұрын

The funniest part of this comment is not the hyperbole , but that you think you matter. That is unless you also facilitate millions of financial transactions across the broader economy.

@drscopeify 6 ай бұрын

Well Yellow went under just like a home owner that fails to pay

@decaprio7421 6 ай бұрын

Trump made a side deal with them obviously 🙄

@europana7 6 ай бұрын

Can I borrow $750M ???

@TommyDangs 6 ай бұрын

@@mattweiss7645 here you go bro 🥾enjoy licking it your entire life 😂

@redwolfexr 6 ай бұрын

Borrow a bunch of money, pay the CEO and executives well.. then walk away before the bankruptcy.

@willvandeusen7130 6 ай бұрын

It’s really just a question of “when are the banks ever going to take responsibility for their mistakes without asking for a bailout?”

@partydean17 6 ай бұрын

With the Fed around they dont have to

@ericromagna870 6 ай бұрын

Nailed it

@LukeMahan-xr4xx 6 ай бұрын

Moral Hazzard

@Legoman69469 5 ай бұрын

They will never. Because large companies and banks are ran by the same MBA poop and swoops. They go in convincing shareholders they know something about running a successful company, do their 5 year stint while making millions in bonuses and then get out of dodge when the business is about to fail.

@sufthegoat 5 ай бұрын

Exactly

@thelammas8283 6 ай бұрын

One of the purposes of tighter monetary policy is to weed out weaker business models and stop misallocation of capital. It is a good thing, not a reason to worry.

@sten260 6 ай бұрын

yes that includes big corporations, if they are unprofitable they have no reason to be still in business. That would also release a lot of workers so other companies that are actually productive have bigger pool to hire from

@kaovilai 6 ай бұрын

only if they're not taking assistance away from other companies.

@NicholasWHaley7 6 ай бұрын

It is a good thing but we are talking about 10% of public companies.

@MomopilotCool 6 ай бұрын

Easy to say when your livelihood isn't on the line.

@joelstanley3330 6 ай бұрын

TZA

@kurtphilly 6 ай бұрын

It’s not zombie firm that bothers me, it’s the bank or lender that agreed the business model was viable.

@redwolfexr 6 ай бұрын

Its not always obvious, on paper a plan can look good -- but still be subject to external risks. Once you run out of your line of credit and you can't make payroll or get the next loan you expected -- then you are done.

@Spoopball 6 ай бұрын

Sadly bailing out a bank makes more sense than a business. Just look at China. Their banks just take deposits and freeze accounts to stop bank runs because Chinese banks are not backed by their government. When a Chinese bank goes under all accounts loses all of their money, no questions asked. Most Americans complain about the bails out without seeing how badly the alternative is like how other countries have it.

@lisboa63 6 ай бұрын

Dude, the banks agree to lend money because they are all friends. The bank manager makes the bonus, the zombie company gets the money, and they are all happy. Later, if the bank goes under, it just gets bailed out by the tax payers. This capitalist system is all corrupt.

@josiasnkwana9282 6 ай бұрын

Problem with monetary policy is always the bank approval framework. The incentive to build particular assets or to determine what assets are needed in an economy is always determined and created by the banks(this is of course my view)

@DG-hw8it 6 ай бұрын

Same with companies going public! 🤥

@shabsfazl2082 4 ай бұрын

Lucia Nathan is a blessed trader.

@milootto9420 4 ай бұрын

Options Insight," Headwaters Volatility's Matt Rowe examines the recent stock market volatility with Bloomberg's Lucia Nathan stock exchanges.

@tsbrownie 2 ай бұрын

They don't talk about really big corps that live paycheck to paycheck in that they pay out all spare capital to investors (in the old days they saved for a rainy day). They have drastically cut or eliminated R&D, i.e. they don't have long term plans. They tell shareholders that the increase in stock price replaces payment of dividends. A hard dip is going to fulfill what Buffett says, "You don't know who's swimming naked until the tide goes out."

@maryhadda8420 6 ай бұрын

I've worked for a few of those zombie companies. One of them did go bankrupt while I was working for them. Twenty years later, they still owe me a month's pay. Another ex-employer went out of business when they got raided by the police, but that's another story.

@felixdeleon7685 6 ай бұрын

I love how this story regarding zombie firms was released on Halloween

@andrs901 6 ай бұрын

PSA: do not confuse startups with zombies. If there is a clear path to profitability, it's a high risk that might pay off in the future (e.g. Uber, Amazon). Zombies are hopeless businesses in established sectors that should have disappeared long ago. Something like Sears.

@tube.brasil 6 ай бұрын

Most startups are zombies which walk fast.

@andrs901 6 ай бұрын

@@tube.brasil Startups are like children. You spend lots of money raising them, hoping they become self-sufficient. Zombie companies are like that patient with brain death whose family refuses to disconnect.

@brandonburns5365 6 ай бұрын

Nice try😅

@SivalinPuthery 6 ай бұрын

How's your startup doing in this high-interest rate environment?

@tomcat8662 6 ай бұрын

There is never a clear path to victory in a startup. Even Zuckerberg would never have imagined what the Facebook would become. They are simply extreme risk, extreme return experiments.

@andrelinked 6 ай бұрын

In my city there was this company that was kept open for 32 years after the first bankruptcie because the judge responsable for it would not allow any lawsuits to take place

@DG-hw8it 6 ай бұрын

Talking about companies like doordash? 😊

@AdamBechtol 6 ай бұрын

:p@@DG-hw8it

@JoeKlunder1 5 ай бұрын

This has seemed true, especially since the Great Recession. When times are good, "free enterprise, taxes and regulations stop our hard work ethic and innovation." When times are bad, "we need bail outs, too big to fail, etc."

@tom4ivo 6 ай бұрын

Japan's banks didn't want to write off loans because that would have indicated that they didn't expect the borrower to pay the loan back, which would have meant a loss of face for the borrower, something you don't do in Japan. So they kept bad loans on the books for 20-30 years, until the government finally said "Enough!", and made them remove the loans from the books. By then, though, it was way too late for the economy to fully recover.

@MomopilotCool 6 ай бұрын

Nice narrative that has no substance to it

@andiandi-qq1by 2 ай бұрын

Can I make a friend? I want to study@@MomopilotCool

@peopleschoice9555 6 ай бұрын

Simply put- Rich people providing zero value (business) have been getting billions of taxpayer money interest free and totally forgivable(bankruptcy). Now, replace that with a common joe, who got a credit card at 29.99% interest, who is one late payment away loosing its ability to ever borrow and going into downfall with no one to bail out. CAN WE put these people in jail now???

@michaelhutchings6602 6 ай бұрын

Let me guess, your solution is bigger government.

@tomcat8662 6 ай бұрын

Never use a credit card unless you are doing it for some sort of reward points and you fully intend to pay off the balance immediately.

@Distress. 6 ай бұрын

Unfortunately theyre alsonthe judges and prosecutors

@doujinflip 6 ай бұрын

@@michaelhutchings6602If the growth is in commerce inspectors, auditors, and prosecutors, then yes. Corporations and their executives get away with far too much improprieties if not outright crimes.

@DanielPanuzi 6 ай бұрын

Have any of you recently been monitoring your stock portfolios? I've recently suffered some pretty significant losses. A few growth stocks I had invested in looked promising at the time, but things aren't looking so good now. I thought my tech stocks would rise, but they have been falling. I've lost nearly $100,000 in the stock market.

@louis71350 6 ай бұрын

It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor.

@Emmanuel90970 6 ай бұрын

Agreed, instead of panic or following a hearsay, I simply adopted the service of an advisor early 2020 amid covid-outbreak, and so far, I've attained my most measurable financial milestone of $650k after subsequent investments.

@Emmanuel90970 6 ай бұрын

Credits to *Sharon Louise Count* one of the best portfolio manager;s out there. she;s well known, you should look her up

@AddilynTuffin 6 ай бұрын

I quickly searched her full name and her website appeared instantly, showcasing her impressive qualifications. Thank you for sharing.

@andiandi-qq1by 2 ай бұрын

Can I make a friend? I want to study@@louis71350

@brandodooferman9378 6 ай бұрын

I think government bailouts of large companies is one of the worst things that can happen especially banks

@Tricia-Tricia 6 ай бұрын

I totally agree! 💯 Government bailouts for large companies, especially banks, can be incredibly problematic. 😡 It seems like these companies make risky decisions knowing that they'll be bailed out if things go south. 😤 It's unfair to smaller businesses and individuals who don't receive the same treatment. 🚫 Let's prioritize accountability and fairness in our economic system! 🙌💪

@bobbob-uo7vj 6 ай бұрын

Wait so government bailouts negatively affect the economy over time? Woah 😮

@placeholdername0000 6 ай бұрын

Depends on the exact situation. They can be beneficial if used right.

@andiandi-qq1by 2 ай бұрын

Can I make a friend? I want to study@@placeholdername0000

@billcipher2893 Ай бұрын

@@placeholdername0000 Can you please elaborate and take some examples?

@placeholdername0000 Ай бұрын

@@billcipher2893 The early renewables industry. It wasn't profitable back in the day, but it has since become a great success.

@noclicheplease 26 күн бұрын

😂 don’t know when it’s gonna burst, but this bubble is certainly getting bigger. But on the bright side, Biden did incentivize certain future industries to take root in America. Hopefully Trump will build on it. We don’t want to see the biggest economy failing.

@tube.brasil 6 ай бұрын

Negative real interest rates (lower than inflation) will create all kinds of economic distortions and monstrosities.

@mvmlego1212 3 ай бұрын

Agreed. Thankfully, short-term treasury yields have returned to positive. The yield curve is still inverted, though...

@Fantom6400 6 ай бұрын

It’s unfair that these zombie firms continue to get bailed out by the government and in many ways these get away by not paying taxes.

@masterstacks2030 6 ай бұрын

this only happens when money is costless to "create."

@1wun1 6 ай бұрын

Or when the money creator isn't the one that suffers the effects

@pogiboy3571 6 ай бұрын

a number of spacs were created from cheap money... mostly offshore companies (dirty money)... another way of doing you got it... money laundering.

@adamkares7549 6 ай бұрын

And to borrow. A lot of publicly traded companies main reason to exist now is not their product, but to work the gears of the financial system. Buyback stocks, issue massive 0% corp debt endlessly which means being profitable or caring about your employees is an afterthought to the major shareholders, whom are literally just scamming the system now. Our economy is running like a circus because it is run by actual clowns.

@Invasupport-zi5lm 6 ай бұрын

Why stay alive just to keep servicing their debts for eternity? It's useless. About rates, the Fed didn't raise further yet the market is going up. Weird. I'd say given this high volatility, wouldn't it be prudent to create a portfolio based on someone else's successful model? I've achieved a remarkable 21% ($130k) return in just four months via the model portfolio approach without entrusting my funds to anyone for management.

@Maestro130-bc6cb 6 ай бұрын

My portfolio is not looking so good, and I believe it could perform better. Whose portfolio do you copy?

@Invasupport-zi5lm 6 ай бұрын

At present, I work with Lauren Marie Dale. She has shown expertise at its best. Some really amazing stuff. Smart diversification, risk management, with substantial earnings. Yet I only have to copy this automatically in real time using algorithmic trading system. I don't hand funds over.

@Invasupport-zi5lm 6 ай бұрын

Well, despite the wild market since 2022, I'm content with the reassuring results. She charges 10% of only profit as performance fee. Don't get burned, mate. Get a help if you have to. Schedule a phone call.

@ebubeawachie 6 ай бұрын

Scam and fraud Bots are getting way smarter.

@marcusfrilette110 3 ай бұрын

@1:27, Heyyy, it's downtown Tampa

@seopriority 6 ай бұрын

Great, now I have to spend all day picturing businessmen wandering Manhattan like it's the Walking Dead all over again 😆

@ThejOH007 6 ай бұрын

All these zombie firms and I can’t get a real estate loan 🙄

@mannsolo6294 6 ай бұрын

Why would you want to right now? Are you crazy!?

@nomobobby 6 ай бұрын

@@mannsolo6294Because they'd like to move out of the parnets spare bedroom already. Also, why wait for a future interest rate cut that isn't likely to return soon? Even if the markets crash, 0% interest is a *terrible* idea because investors toss money at anything that might make money. And that leads to all kinds of other problems like the ones in this video.

@amateruss 6 ай бұрын

@@mannsolo6294 He wants to think outside of the box.

@vanesslifeygo 6 ай бұрын

@@mannsolo6294 🤣🤣🤣

@Raika63 6 ай бұрын

We are too reliant on banks ("too big to fail") and need to make sure we prepare for situations in which they need to fail without destroying everything they touched.

@DG-hw8it 6 ай бұрын

Who would hold a those bonds? 😢

@blueoval250 6 ай бұрын

Government should not be giving out loans or bailouts or subsidies or welfare or whatever your preferred term is.

@mann234 6 ай бұрын

My take is when a company goes below $1 in price, Nasdaq do not let them do a reverse stock split. It kills stock holder value because when they jump from 0.5 to 5 dollar overnight through reverse stock split they simply invite the same process of shorters to hammer the stock back down to 0.5 dollars again. At 0.5 dollar after the 180 days or 360 day expires , let them simply move over to the OTC Market.

@andiandi-qq1by 2 ай бұрын

Can I make a friend? I want to study

@stanislavkazakov6440 23 күн бұрын

This is the best strategy I've ever come across. Thank you for sharing it with us.

@maryhadda8420 6 ай бұрын

I once worked for a company that had a bad business model. They lost money continuously, never showed a profit for any quarter AFAIK. Every time they ran out of money, they just issued more stock... AND PEOPLE BOUGHT IT! Hard to believe, but true. Eventually they got acquired by a competitor. It sounds to me like the competitor was no smarter than the stock buyers.

@andiandi-qq1by 2 ай бұрын

Can I make a friend? I want to study

@kallemueller3194 6 ай бұрын

In the decade of a booming economy in combination with low interest rates there was no problem. Cheap money was available to almost every business. Let's take real estate as an example, it was very easy for a company in this sector to borrow money, real estate prices rose on a monthly basis, so a firm in this sector could easily add a lot of leverage to its balance sheet. Now, debt has become way more expensive as interest rates went up, which also leads to the question if the underlying assets (real estate) are still worth that much.

@lewisisabella995 4 ай бұрын

I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.

@clintonfred381 4 ай бұрын

It's always inspiring to hear from a professional trader who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan...

@kapkivos8715 4 ай бұрын

I wholeheartedly concur, which is why I appreciate giving an professionnel trader the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over €1.5 million dollars working with an investment coach for more than two years.

@pigemould392 4 ай бұрын

I wholeheartedly concur, which is why I appreciate giving a professional trader the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over $1.5 million dollars working with an investment coach for more than two years📈

@nathanielchukwu391 4 ай бұрын

Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over €1.5 million dollars working with an investment coach for more than two years.

@krumba100 6 ай бұрын

There are companies that "make" money and companies that are doing a job. Providing a service or a product is always less profitable than selling air. Why then try to serve the people if you can lie to the people and take their money. Have you thought about the fact that when you shop for food a large amount of what you pay for is water, packaging and advertising. With non food products you pay more than 50% for the advertising.

@JasonB808 6 ай бұрын

The people talking this video are fine with business failing as long it’s not their banks that needs to be bailed out. 😂

@jwc1772 6 ай бұрын

Good quality expose 👏

@zettaiEngineer 6 ай бұрын

The counterparties to zombie firms' unpaid debt will receive haircuts. Scrutinize aggregated or securitized debt instruments where bad paper will be laundered with the good. Also, neither the holders of fixed, longer term low rate loans (mortgages) as well as buyers of longer term, higher rate paper have plans to roll the paper thus contributing to a creditor cash crunch.

@normbograham 6 ай бұрын

I worked for one in the Tech Sector (if not two)! 1. One had a planned bankruptcy date, and the target bankruptcy date was posted on the fridge, so, none of the employees would be alarmed. I found that alarming. I found another job, and left. The company existed to take the risk, and expenses, and pass revenue to another company. They were looking to hire lots more developers, and I dont know why. They rented a home from the parent company's owner. 2. Another existed, because they assumed all the risk. The company was breaking copyright laws. they eventually got out of it, which I guess, was sortof unplanned. they actually still exist today.

@mitchwaddell25 6 ай бұрын

Look at the cash flow statement and subtract out share based compensation (deduct it instead of having it listed as a net positive) and compare that to the income statement and see how many more (or less) shares outstanding. That will give you a starting basis on IF the company is actually profitable versus getting investor cash.

@Jazmin-ro3zt 6 ай бұрын

Great piece!

@Starship007 6 ай бұрын

Even the general public felt rich buying million dollar homes paying only 3%. Now with higher interest rate they do not feel wealthy

@anthonycekic4509 6 ай бұрын

The general public didn't buy million dollar homes. Most people couldn't afford homes.

@gecho194 6 ай бұрын

Legacy costs likely contribute. A new business with gig workers has lower costs than a business that has actual employees, provides them benefits / retirement and an actual living wage without having to work 3 jobs.

@justinbeghly1435 6 ай бұрын

Simply put they are companies that have borrowed too much and don’t have the cash flows to make their bond or loan payments. Of course, as interest rates rise it becomes more expensive to refinance that debt, and defaults accelerate.

@BrewerVera 4 күн бұрын

I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

@FaithAndrada-xo9ou 4 күн бұрын

Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks

@Raymondcraw1967RaymondCrawley 4 күн бұрын

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.

@AndersonFair-cy2bb 4 күн бұрын

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.

@Raymondcraw1967RaymondCrawley 4 күн бұрын

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with 'Whitney Kay Stacy' for the last five years or so, and her returns have been pretty much amazing.

@AndersonFair-cy2bb 4 күн бұрын

She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

@bonwatcher 6 ай бұрын

Transportation from automobiles, airlines, railroads and all those banks and big insurance companies all have the government safety net of a bailout. Warren Buffett talks about businesses with a "moat" around their business models, but most of his investments are in those businesses he knows government will bailout which is his preferred "moat."

@danielchow1975 6 ай бұрын

Waaaaaaaay higher than 10%. Especially when you consider what the real cost of labour is.

@8platypus 6 ай бұрын

zombie firms in a zombie economy

@mattweiss7645 6 ай бұрын

...that had a 5% GDP growth rate last year

@stachowi 6 ай бұрын

um... that was his point... it's not REAL GDP, it's inflation@@mattweiss7645

@8platypus 6 ай бұрын

@@mattweiss7645Learn your terms, Real GDP was only 2.1%. With 7% inflation, you are in the red buddy. I am sorry that the school system failed your.

@amateruss 6 ай бұрын

@@8platypus "I am sorry that the school system failed your." I'm still waiting, buddy.

@Distress. 6 ай бұрын

It really does feel that way. The moeny is running out, zombie firms, americans exhaussting their pandemic savings, and now the federal gocernment has posted a trillion dollar deficit.

@Starship007 6 ай бұрын

We had cheap money for too long, 20 years. The printing presses were going l wild especially past 2 years over inflating the economy. Now we are pulling back those dollars.

@nicholasmorello6370 6 ай бұрын

There hasn’t been any stimulus in the last two years…

@elainemunro4621 6 ай бұрын

The boards of directors of these firms are facing decisions about how to keep their businesses intact or how to move ahead through mergers, acquisitions, etc. The wise investor will take a hard look at the financials of these firms before making a bid. Keeping the firm intact likely includes decisions on dividends and how to keep shareholders interested. Another spot for the investor is to look closely at the financials of these dividend payers.

@teddymoon3744 6 ай бұрын

FREE MARKET. no bailouts

@tommychestnut5335 6 ай бұрын

An idea for a video would be dividend payers where you analyze large maturing cash cow companies like Google and PayPal that seem to be in the position of starting to payout growing dividends soon. I’m new in investing and still doing my research.