Why America is the place to be!

Thursday, April 28, 2016 Francisco Carneiro 0 Comments

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Big get Bigger in the Bible

For whoever has will be given more, and they will have an abundance. Whoever does not have, even what they have will be taken from them.

Matthew 25:29

I am a big believer in the exponential growth and that is why it pays to be big, it pays to focus and only do one thing very well (after low improvements in the beginning things get better & better and of course people love to do what they do well. The solution? put the hours in few endeavors, concentrate, Focus.

This graph from the great BCA research, shows that the big companies are much more profitable than the median company.

From the Economist

Another new paper**, which looks at manufacturing in America, China and India from 1982 to 2007, suggests that the trend towards bigger firms is only likely to accelerate. Big firms’ higher productivity, it argues, raises the barriers to entry for new—and presumably smaller—competitors. Larger factories are more productive than smaller ones, so bigger firms can entrench their position over time. That will skew the income distribution even more. There is plenty of evidence across America and Europe that startup rates for companies are falling, allowing the biggest firms to get bigger unhindered by competition. Since the financial crisis, higher barriers to entry in the form of limited access to capital has caused the number of new businesses to collapse.
Not all economists see this as a dreadful thing. After all, bigger firms have much higher investment rates than smaller ones, which helps to fuel growth throughout the economy. The preponderance of small firms in such places as Greece, Italy and Portugal, seems to be one of the factors holding those economies back.

http://www.economist.com/news/finance-and-economics/21646266-growing-size-firms-may-help-explain-rising-inequality-bigger

I am not planning to move to America (the place of the big companies) but i already own stocks in many american companies as a hedge against living in a small country, Portugal. In my country consolidation has not been promoted and the result is that companies are struggling to survive. It's a difficult place to be a small company. you don't have a decent research budget, marketing budget etc...how are you going to compete? you have an idea no one else has and can not be copied! I don't bet on this