Focused Compounding Ep 468. Regulated to Unleashed: Finding Inflections in Deregulation
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Aug 8, 2025 This discussion reveals Crocs' financial ups and downs, spotlighting a surprising stock drop despite revenue growth. It dives into the impact of deregulation on various sectors, illustrating how companies can gain advantages by adapting to changing rules. Historical M&A restrictions in banking are explored, alongside the effects of government contracts on industries like defense. The podcast also covers corporate strategies in navigating tech regulations, examining how firms align with government policies to secure favorable conditions.
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Regulation Often Shields Big Incumbents
- Regulation often protects large incumbents by raising competition costs and compliance burdens.
- Geoff Gannon notes these rules can reduce competition and favor big firms that absorb compliance.
Price Deregulation Drives Extinction And Consolidation
- Removing price controls can instantly raise extinction rates among inefficient incumbents.
- Geoff Gannon notes deregulation often triggers a race to the bottom where many firms fail.
Get Permits Early To Block New Entrants
- Secure permits and small initial licenses early to gain expansion advantage later.
- Geoff Gannon explains it's often easier to expand an existing permit than to approve a brand new competitor.
