When businesses fail, economic opportunities reveal themselves. Basic stuff. The bankruptcy is the recovery. Think about it.
It’s too easily forgotten that when businesses go out of business, they don’t vanish. Instead, their desks, chairs, computers, office space, and human capital are released to better stewards. Same with the assets on their books. In bankruptcies, intrepid and not-so-intrepid investors are able to acquire equity stakes and income streams on the relative cheap. The bigger the failure, the greater the economic opportunity.
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