B2B: The Market That Turns Clients Into Hostages (And Your Money Into Dust)
There’s a dangerous illusion haunting the stock market: the belief that B2B companies—those selling to other businesses—are "safe" investments because they have "big" and "structured" clients. Nothing could be more deceptive. In my view, this logic is like buying a car without airbags because the engine is powerful: you might reach your destination quickly, but a trivial accident will be catastrophic. And here’s the truth no one wants to face: investing in B2B without understanding its web of dependencies is gambling in a casino where the house always wins. The Fantasy of "Corporate Clients" and the Reality of Foretold Disasters: I argue that B2B companies are victims of collective bias. We see million-dollar contracts with giants like Apple or Petrobras and imagine stability. But we forget that in the real world: 1. One Client Isn’t a Client—It’s a Dictator When a company relies on three corporations for 70% of its revenue (and yes, th...