Another point to make is that with arbitrage, you're always trading for pennies. Unless you can scale it ridiculously, you'll always be capped by your time. Its trading dollars for hours.
Now if you were the guy trading 200 washers and dryers in one phone call and not physically picking it up and selling each one to customers... that's scale. So for example if you could wholesale 200 washers from one guy to another guy, or wholesale 50 at a time without physically getting involved, that's an ok arbitrage business, but at any time your supply could run out, or they could raise prices... you still don't have complete control over your business. Could you keep it up for 10 years? Is it something you could remove yourself from, scale up, and sell in a liquidity event? No... it's just quick cash, a quick fix...
Look at Sal with the Paint Brush Cover. He owns his own product. He controls supply. He controls price (to a point). He probably makes great margins compared to cost. That's a real scalable business. Would his business still be around in 10 years? Would he be able to sell his company for millions if he chose to? The answer's yes and yes.
Arbitrage is not real entrepreneurship (except for few large scale outliers, like 7 figure accounts). It'll pay the bills but it's just trading dollars for hours and there's a limit to how much one person can arbitrage in a day. Read both of MJ's books and learn what creates value. As he says... we don't live in a perfect world... therefore there's opportunity for improvement in every defect or imperfection.
Now if you were the guy trading 200 washers and dryers in one phone call and not physically picking it up and selling each one to customers... that's scale. So for example if you could wholesale 200 washers from one guy to another guy, or wholesale 50 at a time without physically getting involved, that's an ok arbitrage business, but at any time your supply could run out, or they could raise prices... you still don't have complete control over your business. Could you keep it up for 10 years? Is it something you could remove yourself from, scale up, and sell in a liquidity event? No... it's just quick cash, a quick fix...
Look at Sal with the Paint Brush Cover. He owns his own product. He controls supply. He controls price (to a point). He probably makes great margins compared to cost. That's a real scalable business. Would his business still be around in 10 years? Would he be able to sell his company for millions if he chose to? The answer's yes and yes.
Arbitrage is not real entrepreneurship (except for few large scale outliers, like 7 figure accounts). It'll pay the bills but it's just trading dollars for hours and there's a limit to how much one person can arbitrage in a day. Read both of MJ's books and learn what creates value. As he says... we don't live in a perfect world... therefore there's opportunity for improvement in every defect or imperfection.
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