Welcome To The Age Of Building Brick By Brick
Sustainable, slow-growth businesses are the new hotness as risky, high-growth companies falter.
The stock market is absolutely annihilating companies that promise long-term growth without showing near-term results. Shopify is down 70% year to date. Rivian is down 69%. Meta — with its metaverse vision far into the future — is down 39%. The tech-heavy NASDAQ composite is down 23%. And VCs are urging startups to adopt financial discipline.
After years of the Fed’s ‘zero interest rate policy’’ — which made it impossible to earn money on cash and led us to accept longer-term payoffs — the central bank has raised rates and flipped the script. High-growth companies that burned money like tinder wood went to bed as kings and woke up as peasants. While smaller, sustainable businesses found themselves on the top of the heap.
We’re in a new world with new incentives. All in the blink of an eye.
Let me welcome you to the new age of building brick by brick, a long-overdue correction where companies that grow sustainably will thrive while those taking shortcuts will falter. Yes. there’s logic to the traditional model, where you ‘get big fast,’ often with VC money, and tell a story to Wall Street that endows you with a massive valuation and…
