Skip Navigation

Ask Lemmy @lemmy.world

neidu2 @feddit.nl

8mo ago

"During a gold rush, sell shovels" - What are some other examples of this?

A couple of others I can think of:

Crypto-boom of 2016ish: GPUs/mining rigs
LLM/AI hype nowish: User generated data
90's dotcom bubble: Server space

61 comments

During/after natural disaster, buy cheap land. Probably works during an economic crash too.
Protests & Riots happening? Invest in glass companies
Cloudy & rainy every day? Sell coffee (looking at you PNW)
War happening? Just sell bombs! (see USA) This one is particular good cause you can always start another war. It's just smart business!
- That's all just regular supply and demand. Doesn't fit the saying.
  
  Gold Rush = high demand = invest in (aka buy) shovels
  Same thing, no?
  
  No.
  Gold rush = a bunch of fools getting hyped up on the latest thing thinking they'll get rich, but almost none of them will.
  Selling shovels = not chasing the latest hype, but making money off the fools who chase the latest hype.
  I'm not offering an opinion or interpretation of the phrase btw, that's the actual definition.

61 comments