How to Dunk on the Competition And Win It All

My Investment Thesis

Every single week that passes, I am getting more confirmation that my investment thesis is correct. 

And what is this thesis, you ask? There is huge money to be made in the reindustrialization of America.

The United States is going through a massive secular trend of re-industrializing. Spending on building manufacturing facilities reached a record high of $108 billion in 2022 and has been shooting up since then.

What to DO with My Investment Thesis

The question is, for “little guys” like us, what’s the best way to play the trend?

Well, if you’re in the Oren Klaff family, here is what we will NOT be investing in: 

  • Semiconductor Factories
  • Battery Factories
  • Car Factories
  • Chemical Factories
  • Airplane, Drone, and Missile Factories

And for some very obvious reasons. Not only are these quite possibly the most competitive industries in the world. . . 

They also require huge sums of money and lots of government contracting experience to get anything done.

And more relevant, these are 10-20 year investment cycles that are far better suited for institutional and government spending. 

You see, in the Game of Money, the goal is to make as much money as possible, as easily as possible. Basically, what we want to figure out how to do is dunk on school kids, take their lunch money, and then send them to detention for anger management. 

Where might you find such a juicy target full of lazy competitors? Like all good (and bad) stories, this one starts in Las Vegas.

The Tradeshow: A Snapshot of the World’s Laziest Competitors

On Feb 29th, I attended an industry-wide conference on industrial surfaces. Here’s me walking into the tradeshow with my badge.

And I kid you not, it was like I somehow time-traveled back to 1995. I was surrounded by a sea of high-dollar booths in the manufacturing industry, each one showcasing their products without any of the flash and dazzle of modern technology.

  • No video walls,
  • No young, attractive (and highly motivated) reps,
  • No Hollywood franchises,
  • And not a single celebrity in sight to draw in crowds.

It was 4.7 million square feet of completely unmotivated people doing nothing special at all.

Take a look at this booth. . .

This booth probably cost $250,000 to reserve and set up. And it’s not like these are cheap pieces of cardboard and styrofoam. These are 400lb stone slabs someone with a forklift had to ship to the convention center, move, and set up.

So with this much effort put into setting this booth up, you’d think there’d be a lot of people looking to get you over to the booth, check out their product, and place some orders. . . right? 

WRONG.

Instead of the typical “car salesman” mentality of tradeshow people, not a single person in the entire convention center started a conversation with us. 


So with nothing better to do, I decided to take things into my own capable hands. I started talking to anyone I could find, pumping them for information about what was going on in this industry. And I couldn’t believe the things people told me.

The Industrial Surfaces Industry: A Market Ripe for Investment

I got some pretty shocking information from people who should have been selling. Here are the highlights:

  • I asked about this industry’s “asbestos” problem, called silicosis. . . and pretty much everyone told me they weren’t worried about it AT ALL. In fact, one rep from a company you definitely know the name of said to me (not kidding), “Everything is toxic. What are they going to do, just ban manufacturing? That’s like saying they are going to ban smoking.”

    For those of you who aren’t up to speed on American regulations, we definitely banned smoking. We’re also looking at banning silicosis-causing materials.

  • I asked a sales rep about inventory issues. . . and was told, “We don’t really care what comes in, because it all sells anyway.”

 

Wow.

 

  • And when I asked why no one raises capital and tries to size up in the market. . . the overwhelming answer was, “Why take the risk? We already sell everything we make.”

 

Interesting.

The Lunch Money Hands Itself Over

Now, I’ve already been working on a deal for four years to take over this market, and millions have been invested–mine and investors’. So believe me when I say this: I’m already IN on this whole deal. 

But after I walked out of the convention center, it was exactly like that scene in The Big Short where Steve Carrell’s character orders ANOTHER $1 billion of mortgage products after he sees who he’s trading against.

I went to this show to buy 20,000 slabs of quartz to start filling the approximately $30 million of revenue I’m looking at booking in 2024. . . and no one wanted to talk to me about taking my money.

So let me ask you a simple question: If you found an industry that seemed to operate on the assumption that good products alone are enough. . . that there’s no reason to pay attention to regulations. . . that meeting changing customer demand isn’t important. . . 

And you’re sitting on a “Royal Flush” of a deal that can eat ALL of these kids’ lunches. . . wouldn’t you double down?

I did. That’s how good my position was. That’s how easy it was to dunk on the competition and set myself up to win it ALL. 

I promptly went out, signed a purchase order for $26 million worth of equipment, and prepared my new company to obliterate the competition–all while raking in at least $100 million in order volume over the next two years. 

This deal might be the best one of my career–and it’s largely because the competition isn’t even trying.

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