Strategy: Spotting market inefficiencies¶

These inefficiencies can occur because of various reasons: - The profit motive. Businesses try to maximize their profits and minimize costs, but that doesn't really align with customer needs. Examples: Private education- maximizing how much students pay buy actually learn doesn't really make sense. - Goverment regulations - rent control, rent cannot increase only 1-2% per year. - Not enough potential profit - Orphan drugs and orphan populations.

What to look for: - Look for completely irrational pricing - Private education vs public education price gap - Housing prices - Drug prices - Look for weird consumer behaviours - People from Brazil comping to US to buy Apple products - Landlords actively try to evict their tenants

How to build an idea: - Look for the problems caused by the inefficiency - Work on importing electronics - Can't fix the rent problem, but you can make landlords and tenants life easier.