Thesis vs. Incentive

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The general approach to investing is thesis-driven. Thesis investing consists of a product or service that is commercialized for the marketplace. Conversely, incentive investing is based on established rules and laws that meet a particular need for the public.

What happens when the product or service doesn’t commercialize into revenue? How do you make money? One way a company could make money is by integrating the preexisting tradeline with additional tradelines. For instance, we have to remember the only difference between Ford Motor Company and Coca Cola Consolidated Incorporated is the product they provide to the public. They were both formed at inception to increase tradelines to increase the bottom line ultimately.

Companies were never created to lose money or break even, though this is the common theme due to thesis investing. The focus has been shifted off of revenue and onto the product. Honestly, the product or service doesn’t matter. They should only be viewed as additional tradelines. After a company is filed at the state level, they should have revenue coming in the next month, minus a product or service. Incentive-based investing concentrates on maximizing revenue streams to increase the bottom line.