Hey, what's up you two, I'm Zeke and welcome to the dream green show. In this episode, I'm going to bring you guys the top three smart, big brain investments that you can make if you have any extra cash laying around. I get the question all of the time, Hey, Zeke, I got a thousand dollars. I got a hundred dollars. Where are some stock stock and investing it to to make me some money? And I always say, Hey, please do your own research. You can invest it here. But but really, what is your risk tolerance right now? You can invest inside of these stocks. You can do options and all the day and you can make a lot of money. But you can also lose a lot of money. Everybody would say, Hey, I'm not trying to lose the money. I'm just trying to make some money over time. And this is going to be the big brain smart investments that I'm bringing you guys today that I actually do myself to help grow my portfolio to a six figure portfolio in just a couple of years, guys. And you could do the same thing too. As long as you follow these big brain strategies that I'm about to bring you guys today, because these tips, these secrets, these tricks is the same thing the millionaires use. I'm giving it to you for free. So if you want it for free, go ahead and hit that thumbs up button that helps out this channel more than you can even imagine and subscribe to the channel so you don't miss out on any future videos. But before we dive into it, before I give you guys the secret, this video is brought to you by Moomoo. Sign up now by clicking the link down in the description. If you deposit $100, you can get up to 16 free stocks with those free stocks. They offer plenty of different tools inside of their investing platform that offer commission free trading, commission free investment.  You used to have to pay just to sell. And now they're offering it commission free. You could buy stocks before market hours, during market hours, after market hours. I'm telling you guys, this is one of the best promotions they had to date. So I'm going to click that link down in the description. Sign up to deposit $100 to get your 16 free stocks. It takes no time to sign them, guys. So don't miss out on the opportunity. So let's go ahead and dive straight into this video. Welcome back dreamers.  Now, when companies do a stock split statistically, this is a very smart investment depending on the company. So you only want to do this on good, high quality companies to have stock splits. Now, what you're asking yourself, what is a stock split? Stock split is basically when these companies take a share of their portfolio and divide it in however many questions that they wanted to divide into. So for this example, we're going to use Apple. Apple back in 2020 had a 41 stock split. So for every one share that you own of Apple, after that stock split, you're going to own four shares of Apple, but the price is going to be divided in fours.  Then you section off that rice in half. Again, it's the same amount of rice on the plate. It's the same amount of rice on the board, but it's just section into four different parts. Now you're saying, hey, if it doesn't change the value of the company, if the price really doesn't change, if I still have the same rice on the board, how does that help me make money and be a smart investor? Well, let me explain it to you right quick. The first thing is that it is a satisical, psychological play by these big companies. Now, stock splits, they can make shares seem more affordable to small retail investors. Just like us, we are small retail investors. Even though the value of the company doesn't change, this can lead to increased buying. Now, basically, if you see Apple for $500, right? If you see Apple for $400, a lot of retail investors like us will not buy one single share of Apple for $400 because it just seems too expensive. Now, if they had a 401 stock split and Apple price came all the way down to $100, more people will be inclined to buy, sell, trade and invest into Apple because it seems more affordable. So on a psychological play that is also smart.  That's this is why stock splits are good investments to invest into. And this is why they're smart to invest into. It's because of the long term effects after you buy stocks after they have a stock split because of the long term effects of the stocks that you buy after they have a stock split. Now, there was this study conducted by David. He was the lead school business at the University of Colorado. He looked at the performance of these stocks during the three year period following a stock split. He found on average that companies that had a stock split outperform the stock market within that that 365 days within that year by 8% and that outperform the stock market by 12% over the next three years after they have a stock split. Now, that just imagine the stock market usually goes up 6 to 8% every single year and stock splits outperform that by 8% in a year and by 12% in three years. That is smart investment guys. Now, that is a study shown of looking at the top companies that have stock splits. Now, you don't want to just invest into any old regular daggity company that has a stock split. You want to invest into good quality blue chip style companies that have stock split. They don't happen often, but when they do, guys, that is something that you might want to peek into. Do a little bit more research to see if you want to buy this company if they're having a stock split that year. Now, I'm not saying that stocks only go up or they only perform well after the stock split. I'm just showing statistically speaking, good quality stocks that have 41 stocks 3 to 1 stock splits, 5 to 1 stock splits outperform the stock market by 8% in a year and 12% over the next three years. So let me show you a quick example right quick. All right, so here we are on Moomoo. Let's type in Apple AAPL is the ticker symbol right here on Apple. And if we go down to the weekly chart right here and go all the way back, Apple had a 4 to 1 stock split back in 2020. So that is around, around in this area right here that had a 4 to 1 stock split later on in a year. So around 90 ish dollars or so in this area in late 2020 that had a stock split. So Apple, as you guys can see, is doing fairly well going all the way from 80 to 90 dollars from the stock split to up to ahead of all time high of $197. So doubling going up 100% within the three year period is definitely outperforming the stock market. And the next one that we're going to look at is that had a stock split back in 2020 was Tesla TSLA. All right, so we got all the way back to 2020 when Tesla was already booming. They had a stock split back in 2020 right here. When was that stock split? That stock split was August 2020. So let's look at that right quick. August 8, 2020. So around the $167 price point and Tesla had an all time high of $414. So they definitely did meet that up 8% over the next year after that stock split. And they did meet that up 12%. And they did meet that up to a percent out over the next three years because it's 2023 right now. And Tesla is still performing fairly well up to $271.30 at the time of the recording of this video. So yeah, guys, I tell people all the time, I'm an investor. I'm not a trader. I really don't trade that much. I do an option trade, but I sell options and I only really swing trade when I see a good entry point. But I tell people all the time, I'm an investor and I make smart investments. And that is one of the smartest investments I can make is when a good quality company come in, have a stock split when the portfolio is already looking good. I know that statistically speaking, that they're going to perform pretty well over the next three years. I go in and I buy up a lot of shares as long as it's a good quality company that I do not mind holding over the next five, 10, 15 years. Now let's move over to big brain play number two. And that is when companies buy back their shares. Now for this example, we're going to use Microsoft because Microsoft usually has some of the largest buybacks out there inside of the stock market.  And when there's less shares out there, right? When there's less shares out there, it makes there the shares that the investors have in their own shares that they have more valuable, right? Because when there's less out there, the shares that you do have is more valuable. Now exactly what does that mean? It means that when companies buy back their shares that have a less shares out there, that mean they have a higher earning per share when they have their earnings report. So it kind of do make that earnings report look a little better.  So it shows even more faith inside of that company. So if you ever took an economics class, you know the supply and demand when there's a lot of supply, demand is low when there's a high demand and supply low, the price goes to the roof. So that's why you want to have less shares out there. And Microsoft has one of the largest company buybacks out there. The last one that announced was back in 2020 for a $4.9 billion share buyback of their shares that's out there floating. That is huge guys. Now don't just go out there and say, hey, this company is having a buyback, but they're only buying back $10 million or this company's only buying back $100 million, which is still a lot of money. But Microsoft announced a $4.9 billion buyback. What does that mean? When companies have a large buyback like that, there's going to be a lot less shares out there, right? Statistically speaking, again, usually when companies have a large buyback of their shares, they outperform the stock market over the next year. All right, so here we are on Moomoo. This is the Kirker guys ticket symbol MSFT is Microsoft. Now, as you guys can see over the last couple of years, all of it from 2019 to 2023, Microsoft has been killing it. You're wondering why Microsoft almost do a buyback every single year, which is completely insane. It's not always huge like $4.9 billion. Sometimes it's a little less. Sometimes it's a little more. But as you guys can see the stock usually it goes up. It's a very little chip, dependable company that when they announced that they're having company buybacks, this might be one that you start the dollar cost average in, maybe pick up a couple shares here and there. It is a very smart play to me to go in and look at other companies that are doing buybacks that I believe that I'm willing to hold over the next five, 10 years that I will invest in too. If they have a large enough company buyback that I'm willing to invest in too. So let me know what would you guys do down in the comments section if your favorite company announces that they're having a share buyback. What would you do? Would you sit back and hold on to your shares? Would you sell your shares or would you go ahead and buy out more shares of that company that you believe in? What would you do? It is a smart play to me. Remember when a company has stock splits, they usually go up. Statistically speaking, big companies have big buybacks over the next year. It usually go up. All right.  Those stock splits is usually when the stock market is performing well. Company buybacks is usually when the economy is performing well. What are you investing to when the economy is kind of trading sideways? Are you really believe that it's going to fall over in the next couple of years? Well, the smart investment, the smart thing that I have been doing over the last couple of years that's statistically speaking, this strategy does well in a recession. It does well when the market is going sideways and it goes in. It does well when the market is falling and that is investing into dividend kings. Now, usually I talk about dividends. That's when companies give back money to the investors either every month or every quarter in the form of dividends just for saying, hey, thank you for holding our shares. I usually talk about dividend stocks and how I make passive income that way. But in other times, I'll talk about dividend aristocrats. That's when companies that's inside of the S&P 500, that's the top 500 companies in America and they increase their dividend payments every single year for the last 25 years. Now, this video, I'm talking about dividend kings. Let me say it again. Dividend kings, dividend kings is when a company is inside the S&P 500.  Now, dividend kings, there are a couple of them out there. I like Johnson & Johnson. I like Pratt & Gamble. I like Coca-Cola. I think PepsiCo just became a dividend king, P.P. All of these companies usually, statistically as shown, when the stock market is going down or in a recession, they do not fall as much. Some of them even go up in the recession, but they do not fall as much. Let's say the stock market fell 30%. These dividend kings might only fall 6%. So that's protecting your money. And the great thing about it is why people love investing to dividends during the recessions because now that you invest into these dividend kings, they're going to give you out your checks every single quarter. So you still have a source of income when everyone else's money is being cut, when people are losing their job. You're still going to have a source of income every month or every quarter from these dividend kings in order to still pay your bills, fulfilling your table, gas in your car and just live your everyday life from these checks that these companies, that these dividends are going to be paying out to their investors just from holding on to shares from that company. So there we go, guys. I listed three. I want you to go down in the comment section to be your favorite one. There's Stock Splits. There's Apple with Apple and Tesla Stock Splits. Usually Apple formed a stock market by 8% within a year if it's a good company. Now, the thing about Stock Splits is that they do not happen often. So when you do see the opportunity, when I do see the opportunity, I hop on as long as it's a good quality company. Number two is share buybacks. Now, when I see Microsoft announced a $500 million share buyback, cool. When I see Microsoft announced a $4.9 billion buyback, hey, that's a little different right there. So that's the ones I keep my eye on. Once again, Microsoft do it often, but it's not always the same price. And then number three, dividend kings. It protects yourself in a recession. It protects yourself from the market's trading sideways. And you're also going to have extra income by doing absolutely nothing.  And you're creating passive income. So let me know down below in the comment section, one, Stock Splits, two, share buyback, or three, passive income with dividends. Let me know which one is your favorite down in the comment section. But that's it, guys. Don't forget to click the link down in the description down. Take it to Moo Moo, Moo Moo. It's by far having their best promotions yet. When you sign up, the $500 gets 16 free shares. That's a amazing way to start your investing journey if you're trying to find out the best way to invest $1,000. And you got extra money on the side. Getting free shares is an awesome jump start if you're trying to do that. So don't miss out on the awesome Moo Moo opportunity down with the link in the description. Also, I have a free e-book. If you want guys want to know more about passive income and dividend investing, click the link down in the comment section. That'll take you to my e-book signed up with that. And also join the Patreon where I post, where I buy and sell all of my stocks, where I post, where I buy and sell all of my stocks. And we also have pro-day traders in there that post their day trades, their option trades every single day.  But other than that, guys, I'm Zeke. Bring you to Dream Grand Show and I'm out. Peace.


Everything I've heard today and everything I've experienced in and around the fellowship is are people who are thinking intergenerationally. You've got some of the brightest minds in the world coming here to New Zealand with their wonderful ideas and then helping New Zealand businesses. EHF is a story that's grounded in partnership. It's a network of co-creation within the idea of a nation for those who turn insights and ideas from the realm of what's possible into our shared reality. A legacy internationally for Sir Edmund's remarkable leadership work. New Zealand for us has an enormous richness. The idea that we can still be learning, still be given wonderful new opportunities such as the Edmund Hillery Fellowship is one of the great glories of New Zealand. I think we can do something here in New Zealand, incubate something which is quite small to start with which can scale quite quickly. We've got storytellers who help inspire new possibilities, activists who speak for those who don't have a voice. We've got entrepreneurs who turn imagination into possibilities. And this is something that I feel about this place, this land, that people are so incredibly generous and that generosity has kind of touched me too. You know the thing that I'm doing every day as an investor is actually my mission as part of EHF. I'm looking for people who are authentic founders of a deep psychological desire to change the world. And one of the key questions that I've had is how do we maximize all of this amazing talent in the room to amplify your impact here in Aotearoa, to positively impact our people? We felt a real uprising in our movement in our community to move from resisting and to reimagining and rebuilding and saying what is the future we do want? What would it look like? And how do we build that together? An Aotearoa must lead. Whether it's agriculture, whether it's energy, whether it's tech, whether it's governance and law, this country can lead the way. We can't build any of those things we said we want to build without building the infrastructure first inside of ourselves. Focused on how we transform our relationships with the body so that we can transform the world. I dream of an information economy based in a restorative ecology where we spread our philosophy through our technology to the pioneers who laid the building blocks of the blockchain long before it was known by such a name open sourcing the treasure maps to reveal where true value lies. This new trust protocol has got the potential to change the way our systems work. I believe the blockchain technologies have the theoretical and technological potential to make those technologies more transparent and more efficient. My goal in coming here to New Zealand is to make this a global leader through sensible blockchain regulation. This could be the Noah's Ark of the World and it's really about putting nature at the centre of our economy. Learn from the natural world. In every being, in every system, in space, in physics, in mathematics, in biology, in water, there is deep wisdom which we can all learn from. Many indigenous cultures don't even have a word in their traditional languages for conservation because they just don't need one. It's so innate. Some of the innovation that New Zealand's already got on top of in terms of giving legal personhood to different natural bodies is transformational and with the country behind it and the iwi behind it, it is something that could quickly ripple out through international aid and development. Where is the food that we eat coming from and where are the clothes that we make made? It's about the founders of these companies. At the end of the day, we view every company that we invest in as that team's company, not our company. Why couldn't we? Why couldn't we do something that would enable New Zealand to put their hand up and do something quite bold? It can be super difficult to keep going, not to give up and the thing you need the most is a community. I hope that New Zealand actually takes that bold step so that in like a hundred years from now we look back at 2017 or so and we thank the people who actually started to make this happen that it's actually going to be Aitaroa. Kia ora.


Good morning class. In the previous sessions I had made an attempt to explain the concept of strategy and provide an understanding on the basic definition of what strategy is all about. More than the understanding I think you should clear the misunderstandings on what popularly people think strategy is all about. So if that misunderstanding is cleared then I think there will be more understanding on the concept of strategy. The fundamental understanding that everybody, every one of us have is that it is about doing things differently and uniquely as a result of which an entity gains some advantage which is competitive and long term sustainable as well. Now we must also understand that this entity need not necessarily be a firm an organization but also be something that is external to it. Now that brings to this class a discussion on the need for countries to have that comparative or I should say competitive advantage. The reason is that it is not only that firms or organizations should do things differently to create that value but also it is quite possible that the ecosystem around which these organizations function and the aggregate of this ecosystem if we call it as a nation as a whole if that is able to generate some advantage which firms and organizations can leverage then there is a strategic source in what I call as the nation's competitive advantage. And to understand this with a very structured framework Michael Porter provides this Porter's diamond to understand the competitive advantage of nations. And there are different schools of thought to this framework the two major schools of thought one looks at the nation's competitiveness from an economic perspective and the other from a management perspective. So it is more on the management school of thought that this Porter's diamond has to be understood not that the economic school of thought is not necessary but then the perspective with which we have to look at this model needs to be more management than economics or trade. Now let us ask this fundamental question as to why should nations be competitive today just as different firms and companies compete against each other for market share countries also compete against each other for a different number of reasons and we are restricting our discussion for the purpose of gaining an economic advantage. So a country needs to be competitive to attract investment investment from indigenous firms investment from firms within the country and also investments from firms outside the country because it is only these investments that can spur some economic activity in a country and generate because it generates business. So if there is investment there is growth in the business and any country that has an economic strength has this very strong brand of being the most favored nation a powerful nation from an economic perspective. So the brand building of a nation the positive brand building of a nation reinforces additional investment and additional growth in business so these are all intertwined as a result of which the combination of the propensity to attract huge investments and generate enormous growth in business and build a very strong brand for the country as a whole makes a country very powerful at a geopolitical level where decisions at the geopolitical level are influenced by such powerful countries which have a very strong combination of a favored investment climate good business potential as well as a very strong brand as a result of which such countries are able to influence decision making at the geopolitical level. So you need to understand that it is definitely important that countries also need to gain some competitiveness so it is not just that strategy or competitive advantage is something that is unique to organizations or firms doing business but also equally applicable to countries as well and if that is an accepted theory then what model will we be using to understand the different sources of such competitive advantage that the country can get. Now Porto's diamond identifies four broad parameters or sources that provide countries some competitive advantage the factor conditions the demand conditions related and supporting industries and the firm strategy structure and rivalry so these four forms these four form the cornerstones of the Porto's diamond that is used to understand a nations competitive advantage now different nations have different combinations or different characters in each of these four individual points but all of these will influence some ingredients within a nation which when aggregated together provides that comparative advantage for a given nation that makes one nation better than a different nation not only individually these four points and as a whole these four makes a very strong case to provide a comparative advantage for different nations and this advantage can be generated either from the availability of resources and the skill set available within a nation or provides a warehouse of information that different firms operating in different nations can use based on which they decide on the business opportunities that organizations need to pursue and what type of resources or skills that they would be requiring and if adequately found in those nations go to those nations and at times a nation's advantage also influences the goal of individual companies as well and it is also possible that based on all of these ingredients based on all of these parameters in the Porto's diamond companies will also be forced or rather pressurized to innovate and invest because of such influencing factors which are not internal to the company but then operate from an exterior and this exterior I am talking about is a country itself the surrounding environment is influenced in such a way that companies are pressurized to innovate and invest so let us see each of these cornerstones of these Porto's diamond and I will try and provide some perspective to it with some examples so that you understand this better the first thing is the factor conditions now the factor conditions is more the local conditions the situation that is that characterizes a country and this could be regarding the production factors which is got to do with the availability of skill labor or the infrastructure that is available which is necessary for competition in particular industries and the source of such factor conditions could be different but mainly can be grouped under some specific heads where identical sources are categorized for example human resources the qualification level the cost of human capital that is employed the quality of the human capital that is employed which can be measured from the commitment level of the human resources or the availability of material resources itself like natural resources or we are talking about a different industry let us say an agrarian type the type of vegetation or the extent of land itself the space that is available or could be the knowledge resources which could be the type of education system in a country or capital resources how advanced are these financial markets could be the stock market or the banking system in the country how regulated or deregulated it is what is the access that companies can get to financial capital or even the infrastructure resources good roads good ports availability of power now these are all the factor conditions that I am talking about and if countries are able to have these factor conditions positively influencing investment then a country can gain some competitive advantage because any firm or organization would be more than willing to invest in a country where human resources good where material resources is available where knowledge resources is rich good access to financial capital good access to material flow by way of good infrastructure by way of good roads ports power so these are factor conditions that I am talking about and of course I had also made a mention about the quality of education institutions or other factor conditions like the quality of research in universities that can be a good input to companies liquidity of national stock markets which again it is tied with the capital resources so you should understand that such factor conditions play a very important role for countries to gain a competitive advantage because these are things that directly or indirectly influence the competitiveness of companies of firms and these are conditions which when favorably disposed will attract some of the best quality investments into a country I will give you some examples for you to understand this better take for example Switzerland since one of the factor conditions that I was mentioning is the quality of human resource which also means the quantity of human resource due to labor shortage in Switzerland it was because of this that they had to abandon a labor intensive watchmaking industry and that is one of the reasons why they went to a niche or a innovative high-end watches which was not that labor intensive and that is the reason why today if you talk of talk of high-end niche watches it is the Swiss watchmaking industry that is globally competitive the reason is because that Switzerland as a country could not afford to provide as much labor as it is required for a labor intensive watchmaking industry and then the companies decided to move up the value chain and engage in non-labor intensive and premium niche high-end watches and it is because of this factor condition that companies were able to that forced to rather provide these high-end watches and not the low-end watches and that explains why Switzerland today is known more for its niche watches than the conventional low-end watches another example is the high-priced land for Japan in Japan which means that since land is premium factory space is premium so Japanese manufacturing companies could not afford to hold such premium space just to store inventory as a result of which this factor condition of land being priced at such a high premium made the Japanese companies to follow what is today called the just in time inventory techniques. So if you go back and ask the question what was one of the reasons for all these just in time and these world-class inventory management practices the single or the more the most important reason is that the land price was so expensive as a result of which the Japanese companies were forced to adopt these just in time inventory practices because they cannot afford to have heavily priced high-priced land just been used for storage another example for you to understand how factor conditions also made countries to develop some unique source of competitive advantage is the case of take the case of Sweden since the building season was very short and coupled with high and construction cost you find that there was a need for prefabricated houses which is very popular in the Swedish geography reason because building seasons are very short and the construction cost is very high and hence prefabricated houses became the need in the Swedish construction industry the building construction industry. So you can understand that these factor conditions which are unique to a nation also makes companies to innovate to come out with new strategies that provides them that unique competitive advantage now what will happen over a period of time is these factor conditions provide that that initial momentum that first mover advantage which firms build subsequently to generate a company's unique competitive advantage now in the process we should not forget that it was the nation's factor conditions that form the very foundation on which companies build their competitive advantage so you should not forget that each country will have its own particular set of factor conditions and it is these factor conditions in each country that companies use optimally to gain that competitive advantage for their own for a company's own competitive advantage so this will explain that in low cost countries low cost meaning where the cost of labour is low you find certain set of industries being able to leverage such low cost labour and you can characterize some countries to be agrarian because of the availability of huge extent of fertile soil or you can you can understand the venture capital market the Silicon Valley in the US for example where the startup culture is so predominant so that explains why venture capital as a developed concept is so popular in the United States so these factor conditions are influenced not only by availability of natural resources but also by some the political establishment the economics or the financial capital markets or the society as a whole which I will be explaining later when we look at different other factors so the factor conditions of a particular nation which is influenced by not only by the nature but also by politics the society the economics provides a fundamental basis and this fundamental basis has a source of competitive advantage which provides that initial drive for companies to build a company's own competitive advantage on it so you should understand that the factor condition as a nation's competitive advantage provides that first mover advantage for companies on which they subsequently build the company's own competitive advantage but do not forget that these factor conditions provided the playground for these companies to play the next is the demand conditions the sophisticated domestic market in a given country is an important element for countries becoming competitive and the process how when firms that operate in countries where the domestic market itself is sophisticated how they become sophisticated themselves because when firms engage in a sophisticated domestic market it is more likely that they end up and selling superior products the reason being very simple that the domestic demand itself is very sophisticated that they will not settle for anything less but of high quality so if you are proximate to such consumers then such firms are able to better understand the needs of such customers and meet those high end requirements not because these are export requirements these are requirements that the domestic market itself requires now what characterizes the home demand or the domestic demand it is a mix of the customers needs and wants which is domestic the scope and growth rate within this domestic market and over and above that the mechanisms that can transmit these domestic preferences to foreign markets of these characterize the sophistication of home demand now if this sophisticated domestic demand spreads to other countries and that it is already sophisticated at the domestic level then there is every reason that local firms will become globally competitive I will give you one example for you to understand this the French wine industry the French they are sophisticated wine consumers now being French being local in France these consumers now force the French wineries to produce high quality wines so you now understand that the demand condition which is characteristic of a particular nation is driving companies in that particular industry to meet meet that sophistication that sophistication and in the process they are not only meeting the local demand conditions but also emerging to be globally competitive as well you can think of other examples as well for example the fashion industry in Italy the locals are very fashion conscious as a result of which you find today the Italian brand is also globally competitive because it is meeting the sophisticated demand requirements of the local or the Italian fashion industry and since this demand requirement is also a globally competitive becoming a globally competitive one there is by natural default that these companies become globally competitive as well so you should understand that demand conditions at the local level if they are very sophisticated then there is a potential for companies in such demand environments to also become globally competitive and another important element in the porters diamond is the related and supporting industries if you have a very strong set of related and supporting industries that can that can support the competitiveness of a particular firm around which these related and supporting industries operate then there is a probability that that particular industry becomes globally competitive and I am talking about the suppliers and the related vendors to that particular industry and this usually act occurs at a regional level as opposed to a national level examples for that the typical examples would be the Silicon Valley in the US or the Detroit the auto industry in Detroit or in Italy the leather shoes or the leather goods industry in Italy or at our own knitwear industry in Thirupur now these are all examples of how at a very regional level the presence of related and supporting industries is providing some competitive advantage which is a strong source for countries to gain a comparative advantage when it comes to positioning them as a competitive tool now there are advantages and disadvantages of such cluster based competitive advantage cluster based meaning locating upstream or downstream industries in the same area and we also call this as the agglomeration advantage there is a great potential for technology and knowledge spillover across the entire value chain the potential to generate some market power because we are able to aggregate within a particular region a set of crucial value chain elements that start from the supplier level up and also reach up to the consumer level and such association is also providing some advantage from a labour perspective which will also become a disadvantage because that is also resulting in potential poaching and also increases competition within the value chain that might reduce the margins as well but by and large the presence of such related and supporting industries is by itself providing an inherent competitive advantage to a particular geography the fourth important diamond important part of the porters diamond is the firms strategy structure and rivalry let us begin with strategy and I will give you one example beginning with capital markets how a domestic capital market the characterization of a domestic capital market influences company strategies now for example some countries where the capital markets do not have a very long run outlook for example take the short run outlook that is typically that is typically let us say is American now there industries where investment is short term that will be very competitive for example the IT industry I am talking about the hardware industry now there you will find that since the outlook itself is short term considering that this is IT you will find that the capital markets in which potential investors are also looking only at short term benefits those will become competitive as against countries where the investor class itself is characterized by those who have a long run outlook for example take Switzerland in that case industries that also require that long gestation period also become competitive and that explains why the pharmaceutical industry for example Novartis in Switzerland is being able to be competitive because it can generate and I am just talking about from a capital market point of view that it can raise capital from investors whose DNA is of that being long run and as a result of which industries that also have long gestation periods become competitive and I gave you the examples of the pharmaceutical industry in Switzerland. Another example is the individual's career choices where an individual base where an individual bases his or her career decisions on the opportunities that are available and also the prestige of being able to work for a particular industry so a country where you find that a key personnel holds positions that are considered to be very prestigious then that country will become very competitive take for example holding the position of CEO of an IBM headquartered in the US or Intel headquartered in the US and a very key personnel holding that position by a natural process also adds competitive advantage to the country as a whole because of this person holding a very prestigious in this case the CEO of an Intel or an IBM or a Microsoft the next thing is structure sometimes best management styles vary across industries not only industries across countries as well some countries may be oriented towards a particular style of management and those countries will tend to be more competitive in industries that require that style of management so if there is a natural sink between an industries required style of management and that particular management is also the characteristic of a particular country then it makes things a little easier for example Germany, Germany tends to have hierarchical management structures composed of managers with strong technical backgrounds and that explains why German companies are a technologically the management structure is more towards people having a technological mindset and as a country as a whole nurtures that management structure then companies that require that technology leadership become competitive or China today the government itself is a little capitalistic so you can understand the transition that it is making today it is making today or India for example dominated by family run businesses and I do not know how many of you know that a majority of successful Indian corporations are family run where the stakes the majority stakes are held within the family and you can extend this also in other decision makings one example is the governance standards whether governance standards in US where it is not family where it is not a owner led business whether they apply in India where it is a owner led business so you could you should understand that the structure which is essential for industries to be competitive and if a particular structure is the requirement for an industry to be competitive and if that structure is also epitomized by the country by enlarge then it is easy for the industry to synchronize with a particular country and also the rivalry if there is intense competition then the competition itself is an inherent source of innovation and that explains why in Japan there is fierce competition as a result of which innovation as a key for growth is now a DNA of most of the Japanese companies and today we are looking at it in the Indian software services industry as well there is fierce competition the social networking take the example of the Facebook or the orchards where there is intense competition as a result of which there is a lot of innovation and if that happens within a country that that spurs such competition then there is more innovation now where does the government fall into the potos diamond now we will have to look at it from the perspective of what would be the implications of government and at times you will you will have this feeling that the government they do some things that they shouldn't and other things that they should be doing they don't and if you ask this question from this perspective we should view the role of government to that of being a catalyst to one where it encourages or pressurizes forces pushes companies to raise their ambitions to raise their aspirational levels and move to the higher levels of competitive performance and the government should be the tool be the catalyst that makes these companies to do things this way and how can they do that and they can do that in all the possible four parameters of the potos diamond they can subsidize monetarily or not or even indirectly by creating infrastructure or by tax provisions or by generating a highly talented intellectual pool through its educational policies or they can focus on specialized factor creations today the Indian software services industry is catering to a non-Indian specialized IT requirement the reason is because the sophistication in terms of the requirement of software as a service within India is not that high and that explains why much of the revenues comes from different countries not in India so if you are able to specialize and create a focus to growth in the software as a sophisticated requirement locally then you will understand how much is the business potential for the IT services the software services companies another area where the government can influence is by just enforcing tough standards maybe high technical and product standards environmental standards because then we are pushing organizations to achieve these or meet these high standards that the government is setting through its policy making I will just give this very popular example of the Japanese fax machine industry that illustrates that best epitomizes the potos diamond for national advantage that I am talking about beginning from the Japanese factor conditions you know Japan has a relatively high number of electrical engineers per capita so that is the factor condition that I am talking about and the demand condition is also very complicated because the Japanese language is a little different from the conventional English language so you can understand how high demanding that the fax machine industry is because of the need for a specialized text and the large number of related and supporting industries in this case I am talking about the hardware industry the miniature miniaturized components and also the fact that the mindset of being less in space explains the also the miniaturization in the in the technology sense and the intense competition within the Japanese that explains the extent of the domestic rivalry that the Japanese fax machine have as a result of which all of them were pushed to innovate and result in cost reductions and how the government in this case a government owned company the entity which is the state owned telecom company changed its cumbersome approval requirement and today it is more general and friendly so if you look at the entire Japanese fax machine industry of course each companies they have their own strategic advantage technology superiority they have their own market share but if you look at it from a very bird's eye perspective from a nation's perspective and split it to understand it from the Porto's diamond then you will understand that the factor condition that it had a number of electrical engineers the sophisticated demand condition that it is because of these Japanese text and if we are able to provide a fax machine that can transmit Japanese script then it is easy to do with English language and that explains why the Japanese fax machines became globally competitive and also the presence of the related supporting industry the hardware industry and the intensity with which there was domestic competition this explains why the Japanese fax machine also became globally competitive so you understand that nation's competitive advantage is not only advantages for the nation but also for companies participating in such geographies because it makes them globally competitive and you can do this by picking many countries adopting these Porto's diamond and ask this question how companies which leveraged which encased on these four ingredients were also becoming globally competitive and there are many examples that you can take to do this you take you can take the as I explained before the Italian shoe industry or the Tirupur's knitwear export industry or the Malaysian Puyter industry so these are all different industries and different countries that you can take as examples and check the applicability of Porto's diamond and in the process you will understand why certain type of products became globally competitive so the Porto's diamond gives you an understanding how even countries can gain that competitiveness and get that absolute cost advantage that companies will get out of a nation's competitiveness the next class just as we have a model to understand nation's competitiveness we also have another model that provides the understanding of how an industry can be attractive and that you will understand when I explain to the class about the Porto's five forces model to understand the industry's attractiveness we will see that in the next class thank you


Hope you're all enjoying your weekend unfortunately for me the slaughterhouse the business I was looking to purchase was sold last week. They closed the deal on Friday I mean the guy jerked me around for seven months. I couldn't even get all of the loan paperwork submitted Point is huge wrench in my plans. I feel like I'm having a midlife crisis I'm not even 30 yet And I wanted to get my thoughts out today because I do want the business vlog on Tuesday to be about the business There's a lot of stuff going on despite this setback and the whole reason. I'm even here I started YouTube I was to share my ideas research work about diet nutrition to improve the health of the people around me and I mean I had no idea what I would have discovered all the way all the evil stuff that goes on and it makes You know me not want to be here even more the end goal being to Improve the lives of as many people as possible to make as many people happy as possible But knowing that those in charge have the opposite intentions I'm not having a fun time and the best way to do that to my understanding is to make as much money as possible and Invest it back into businesses that do so Frankie syringe meat providing affordable quality animal products Yeah, I wanted to do a soup kitchen in New York for God knows how many years I just don't have the thousands of dollars to spend every week on the food to feed people Yeah It's hard not to dwell on because if I would have gotten that slaughterhouse merged my current business with it I think I'd be making over seven figures within a year or two, you know, it was a running operating business with employees over 15 fully staffed makes a good profit reduced my cost of goods substantially I Spoke a little bit about why I can't do it myself the amount of hoops to jump through Finding the land getting zoned for heavy industrial being jerked around by contractors for hundreds of thousands of dollars Getting the USDA approval having to hire those employees that he already had building the customer base. He already had it is Impossible I couldn't get a 1.5 million dollar loan for that existing business I certainly don't think I'm going to be able to get to 2.53 million to build one from scratch and The context of how difficult it is the timeline is just I'm like ready to get out keep in mind guys the current profits are nowhere near that I can't even afford to spend a few hundred dollars a week on advertising I can't do the West Coast location because of the current meat source the products are unreliable and if they were Reliable if I could get every single item I wanted every organ every cut Maribones everything consistently then my customer base would grow as I would retain them because Every time I run out of something which happens every week a couple times a month. I lose customers You know my YouTube channel censored I'm censored on all social media platforms and I can't blame the losers in charge that have a very expensive taste in Brazilian boys I mean, I mean I've spent six years of my life now working towards this and I Feel like I'm at the breaking point. Not one day has been easy or fun. I have not enjoyed any second of this You know when I turn on this camera every single day not once have I wanted to do it as much as I've already done a lot in the context of health and nutrition I Believe I've helped more than anyone else on YouTube and given the situation. I'm personally in I'm gonna lose my mind if I spend a few more months in this shithole city in that slum Ward warehouse I've had a very special business idea completely outside of anything. I've ever done that I think I'm just gonna launch within a year or two. I thought you know You know with everything going on in the world the nonsense. That's obviously put a damper on everything But the revenue from this idea should just put everything else like I don't care anymore I mean even a year or two ago. I was contemplating on just Disappearing for a year or two or three launching this business idea Obviously, it would be easier if I had the social media following and retain more people for when I launched the idea But it's so special. It doesn't matter, but I guess you guys don't have to wait for that one So I'm trying to take it day by day. Yeah, I told myself a few days ago I'm gonna stick it out a few more months and I do have options if I want to stay in the meat industry I'm gonna reach out to a guy on Monday Maybe he'll know something else for sale, but I'm gonna be straight with this guy like I can go right I can go book a flight. I can be in Mexico tomorrow Getting drugged by some girls like this is I don't know why I'm bothering with this anymore Even if that does happen the guy finding the slaughterhouse, although I want the other stuff to happen I'll have the same problem I'm having now. I don't have the money I couldn't get the loan approval to go through If I don't want to go the official route I could just buy the farm I've been talking about Get a loan on a smaller scale that I can probably do and I don't need to do the USDA slaughterhouse because I Only need two three maybe four cattle per week right now. You know, I could get a small existing dairy farm Do the dairy next I wanted to do have the meat on the side and like a cement I don't know. I don't need that much stuff and Thing is for that even just that the amount of time frame and effort the loan required You know, I just don't want to do it. You know, I have absolutely no clue what I'm doing from a farmer's perspective I'm not handy at all. I'm not mechanically inclined Look, I pick things up really easily. I'm willing to learn but it's just something I'm not willing to do at this point and Again to emphasize I don't have the money to do it. I would still have to Find a property apply for a loan get contractors and builders to do certain things.  I'm making UPS so much money I'm making the post office so much money. I'm making ice I'm making more than a dozen companies way more money than I'm making myself So you can bet they're just trying to squeeze every fucking ounce they can out of me and I've had enough of it Just just to clarify That other operation Yeah, it's easier to sell USDA certified meat you can put it on a store shelf and It's technically illegal to sell meat that was not slaughtered in a USDA facility But if you have a farm buyers club where people pay a monthly membership and they technically own the cow You can sell them meat out of your backyard and because they're technically your friends and you're cutting up their animal for them It's not illegal So that bypasses the USDA stuff, but on a larger scale and a long-term profitable business Well, I mean not that but it just seemed like this was a good opportunity So what I could do is I could get that farm property Get the eggs and dairy going build something small to process a few cattle per week You know what I wanted in that slaughterhouse for probably 10% of the price That's actually what the Amish farmers do all of these like I don't like naming them to give them free advertising But there's a lot of New York area buyers clubs that do this And I think my viewers that want to purchase from me are actually currently purchasing from those farms because they have the dairy The eggs and the freshly slaughtered meat. So I know you guys would trust me and be comfortable with that And if anything people don't want government oversight when it comes to their food Preferring it as natural as possible, you know, I mean there are a lot of negatives that also come with the USDA slaughter That I didn't work out. I just wanted to get in the space, you know You can't sell certain organs. You can't sell blood Most places spray the carcass with lactic acid or citric acid, which you know, ruins the health and flavor of the meat to some degree so Yeah, as much as I want to do that. I It's like Like how much do I have to do myself? You know, how much do I have to do myself? I I mean find the property hire someone to run it. I The time to effort the money as as much as I would love to say that's gonna be my next step I I think it's honestly much more likely that you're gonna see me Playing with some Mexican girls on some inappropriate website But yeah, I don't mean I don't mean to disappoint you guys Yeah, and I understand a lot of you guys are like You know, I mean no one wants to be here Everyone's miserable with all this COVID fake bullshit nonsense new world order stuff and and that's always like an overarching thing And on the back burner and something you don't even want to think about but you know I would have made sense from a business perspective to have the reliable food supply I'm just saying at this point Everything's been so difficult.  I really I'm really not I guess Thank you guys for joining me today. I Got a lot of stuff to do tomorrow So we'll wrap this up now before I try to think of anything else So you can go to Frank dash to find our comp to see all of those businesses and support me We got the water key for back in stock the nature's glucose Not the nature's glucose the new glucose product is supposed to be delivered on Monday So maybe we'll launch that this week as well Dehydrator should be up and running if this guy can fix it this week So as I mentioned earlier, we got a lot of stuff with the business going on Check check out the vlog on Tuesday, but that's it guys. So thanks again And I'll see you tomorrow. Maybe a little something different