Penny Share Tip #7

A bold bet on the USA

FEB 2016

Amazon wants everyone to buy everything from Amazon. That’s obviously a ridiculous plan – what kind of maniac would imagine they could take over the entire world retail market?

…But of course, Amazon is pulling it off. It grabbed two thirds of every extra dollar spent in the shops last year.

How does it do it? It’s ploughing billions into giant “fulfilment centres” (read: warehouses) outside all the world’s biggest cities.

Giant warehouses are Amazon’s secret weapon. They’re so big and efficient that they let the company undercut every other retailer’s prices.

Now, this month’s tip isn’t Amazon.

It makes a very particular bit of kit Amazon needs in order to build its giant warehouses. Amazon, IKEA, Walmart, Tesco, B&Q, Volkswagen, Coca-Cola… basically if the company builds massive warehouses, it needs this company.

The real beauty is that nobody else in the planet makes this technology. They’ve got 99% of the market worldwide!

It’s a great little business.

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