Explains complex tech investment thesisfrom @thealexbranford

Transcript

Beast Steel has just killed a cowboy in a $2,000,000,000 investment round into an industry whose last technological revolution was the pickup truck. I look at deals like this for a living, so let me explain why this is the cleanest arbitrage I've seen in years. Beef in America runs on a net margin of effectively zero. It's one of the most operationally brutal businesses on planet Earth, and people aren't doing it for the money. They're doing it for the lineage, the pride, and the fact that their daddy did it and their granddaddy before him. I best think most investors look at a zero margin industry. No margin means there's nothing to buy. Better zero there is not about the cattle. It's about the labor, the fencing, the herding, and all of it is done off the back of a pony in the same way it was done centuries ago. But AI and satellite tech is now at a point where you can draw a virtual fence anywhere where you can see the sky, and you can run the whole farm from an office. A squad of cowboys has been replaced by some hunks of plastic made completely redundant. ALTA, the company in question, say their collars lift pasture eaten by 9% and solids per hectare by nine and a half. And here is why that matters in a zero margin in business. Steyr Farm turns over 1,000,000 with a 1% net margin. That's $10 of profit for a year of brutal worse, but at 9% more output, same land, same labor, and the collars are a few quid a cow, all of that extra revenue falls to the bottom line, and $10 of profit becomes nearly 100. So Taylor best bought the collar that turns every single animal into a data point in the most strategically important industry on planet Earth, food, where the price has been held down for more than a century by nothing but romance.