What Makes People Rich

What Makes People Rich
Basically what’s happening in the economy is the two most backward industries have found themselves in bed with each other and simultaneously crushed by the market. 
  
Retail and shopping malls. 

Retail is mostly in the dark ages: companies like Pier 1 don’t even have an app on the App Store.
 
Shopping mall REITS have been idiotically doubling down and building bigger and bigger indoor malls.

For example in Los Angeles, I watched the Century City mall company invest billions into making it even bigger. Even though everyone in LA likes to go to the Grove, which is an outdoor mall.
 
So basically when you have two industries with stupid strategies in business with each other and hard times hit, it’s not surprising they’re headed towards calamity. 
 
Like Charley Munger tells Warren Buffet, “Warren, if it wasn’t for the stupidity of other people, we wouldn’t be so rich.”

The solution is to always be one step ahead of the game.

Retailers have to transform into e-comm retailers and mall owners need to reduce their footprint and build more mixed-use buildings, for example with residential apartments on top of commercial. 
 
-Tai Lopez