Secondary market

Whereas in English, a public company is una empresa que cotiza en bolsa.

You understand? A private company is una compañía s- que no cotiza en ninguna bolsa, ningún mercado secundario.

And so, despista porque, for example, DuPont is a public company.

Vaughn Systems, this company is a private company.

Right.

We're not on the, you know, in the, in the stock mark- stock exchange here or anywhere.

Ni mercado secundario ni mercado pequeño, the El MADO, ¿cómo se llama? We're not.

So we're a private company.

Here's the problem that whiskey has, is that...

The secondary market was alive and thriving, and it built the hobby.

And it was exciting, and a lot of people were engaged in it, and it was a fun thing to do.

You bought one bottle to drink, one bottle to store, one bottle to trade or to sell.

That was the formula.

And it was a fun thing to do.

And the distilleries were like, why are we selling our whiskey for $100 when it's immediately being resold for $300? Why don't we just sell it for $300? And as soon as they decided to do that, it killed the secondary market.

It killed the fun.

So here's what we're gonna cover today.

Why the secondary market exists and what problem it actually solves, how to evaluate a secondary opportunity without anchoring on the wrong metric, and what buy side practitioners should understand about continuation vehicles, LP exits, and the opacity problem that runs through this whole market.

Richard, how you doing?

I'm doing great, Kishan.

Okay.

When you serialize a card or when a company serializes a card, in short, they have the secondary mind, sorry, secondary market-

What does, what does that mean exactly? Like serialize?

Like number-

So, congrats.

Um, okay.

But the idea of serialized cards, which has been avoided in Pokemon, um, is that it, it's gonna be insanely collectible, and for whatever reason, the sports cards people are like, "We're cool with that," and they are somewhat embracing the s- the, the, the secondary market and the positives and negatives that come with it.

It kind of affects the entire thing.

When you purchase a new forklift, after you choose your model, the option process is much more extensive.

There's, you know, many options significantly impact the secondary market value when it ends up coming off lease.

For example, some options include the mast, the lift height of that mast.

So typically with forklifts, you'll have a two-stage mast, a three-stage mast, or a four-stage mast option.

that the ELFA typically sees.

And outside of that, I mean, forklifts do not really become obsolete.

Like some assets that ELFA leases like IT or some medical equipment, forklifts end up having third or even fourth lives after we sell them into the secondary market.

So they are quite a different animal, even a little bit different than construction if you really dive deeper into the options.