Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

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trouble is opportunity
investingcontrariancrisis

What It Means

Crisis situations often create mispricings and opportunities for sophisticated investors willing to act when others flee

Why It Matters

Most people avoid troubled assets, creating opportunity for those who can analyze risk properly

When It's True

When fundamental value exists despite temporary problems, when you have superior analytical capabilities, during panic-driven selloffs

When It's Risky

When problems are actually fundamental rather than temporary, when you lack expertise to evaluate properly

How to Apply

1

Maintain dry powder for crisis opportunities

2

Develop rapid due diligence capabilities

3

Build network for sourcing distressed opportunities

4

Focus on situations where temporary problems obscure fundamental value

Example Scenario

Scott Galloway buying FTX bankruptcy claims at 20 cents on dollar during maximum stigma, tripling money as situation resolved better than expected