Tomorrow’s Fortune

Welcome to the action-packed newsletter designed to help you navigate the world of business and investing. If you missed last week’s post, check it out here. 😎 

Today’s Digest: 

• You can change a business… but you can’t change a geography: Today, we’ll walk through how to pick the right geography for your business acquisition

• What’s Happening in the Markets? Student Loan “Default Cliff”, Getting High on Stocks, SpaceX Prepping for 2026 IPO, and AI Data Center Eating Resources

• Deal Review: We found a cash flowing Heavy Equipment Training Business in Texas ($550k of Cash Flow). Click HERE for the listing (Deal Review Below)

• 🚨 We’re Going to CES 2026 🚨
  We’re invited to attend CES 2026 in Las Vegas in January to check out the latest innovations in Consumer Technology. And we’re live streaming the whole thing!!! Let me know which companies / booths I should visit (besides Nvidia!)

  Follow on Twitch and YouTube for the Live Stream!

TOP STORY

This Is the Best State to Buy a Business

This Is the Best State to Buy a Business

Two identical businesses.
Same cash flow.
Different states.

One compounds.
The other fights gravity.

That’s why geography matters more than price.

What Actually Makes a State “Good” for Buying Businesses?

I care about four things — nothing else:

1. People are moving in → demand grows
2. Jobs are being created → spending follows
3. Labor is available → you can actually scale
4. The state doesn’t punish owners → taxes & regulation matter

Miss one, and returns suffer.

The Best State Right Now: Texas

Not hype. Math.

• Top population growth (31M People in 2024; +2% Growth)

• Massive job creation

• Deep blue-collar & service labor pool

• No state income tax

• Strong exit demand

If you’re buying services, trades, healthcare-adjacent, or logistics, Texas quietly wins.

Other States I’d Actively Target

Florida — migration + no income tax (watch insurance)
North Carolina — GDP growth + labor depth
Idaho & Utah — fastest % growth (smaller labor pools)
Arizona — logistics + housing tailwinds

The Trap Most Buyers Fall Into

Buying cheap in shrinking states.

Cheap business
× no population growth
× tight labor
= value trap

A higher-priced business in a growing state often produces more real cash flow and better exits.

You can fix a business.
You can’t fix geography.

Growth should do the heavy lifting — not you.

It’s almost 2026! Here’s How to Set and ACTUALLY Achieve Your Money Goals!

WHAT’S HAPPENING IN THE MARKETS?

• Student Loan Borrowers Near a “Default Cliff”

  A new survey of federal student loan borrowers shows rising financial distress as repayments collide with elevated living costs. Roughly 42% of borrowers report making tradeoffs between loan payments and basic necessities, while 20% are already delinquent or in default. Awareness of relief options remains low: nearly half of borrowers know little or nothing about income-driven repayment plans or forgiveness programs.

  Why It Matters:
  This is a slow-burning consumer credit risk. Student loan stress is increasingly spilling into broader household balance sheets — missed payments, higher credit card utilization, and falling FICO scores. With over 5.5 million borrowers already in default and millions more delinquent, this “default cliff” could weigh on discretionary spending, housing formation, and credit performance in subprime-adjacent categories. For investors, it’s another sign that consumer resilience is becoming uneven — strong at the top, fragile beneath.

• Marijuana Reclassification Sparks Pot Stock Rally

  Cannabis stocks surged after reports that President Trump is expected to sign an executive order reclassifying marijuana at the federal level as early as Monday. Major producers and ETFs posted one of their strongest sessions on record, reflecting renewed optimism around regulatory relief and expanded access to capital.

  Why It Matters:
  Reclassification would materially lower legal and financial friction for the industry — from banking access to tax treatment — but it doesn’t solve structural oversupply, pricing pressure, or weak unit economics. The rally looks driven more by positioning and optionality than fundamentals. For long-term capital, the key question isn’t legality but profitability: can scaled operators ever earn durable returns in a commoditized market with persistent state-level fragmentation?

• SpaceX Signals Potential IPO at ~$800B Valuation

  SpaceX told employees it is preparing for a possible IPO next year, contingent on execution and market conditions. An internal stock price update implies a valuation near $800 billion — double its valuation earlier this year — reflecting the scale of its launch business and the growing economic footprint of Starlink.

  Why It Matters:
  An eventual SpaceX IPO would be one of the largest and most consequential listings of the decade. Beyond headline valuation, it would test public market appetite for capital-intensive, founder-led, quasi-sovereign infrastructure plays. For markets, it could reset benchmarks for aerospace, satellite communications, and private-to-public valuation gaps — while also competing for liquidity with mega-cap tech at a time when equity issuance is already accelerating.

• AI Data Centers Are Crowding Out Traditional Infrastructure

  The rapid expansion of AI data center construction is increasingly competing with public infrastructure projects for labor and capital. Private data center spending is now running at an annualized pace comparable to state and local transportation construction, just as governments plan another ~$600B in infrastructure bond issuance next year.

  Why It Matters:
  This is a resource-allocation problem, not just a tech story. Data centers are pulling scarce construction labor, engineers, and materials away from roads, bridges, and public works — potentially delaying projects and driving cost overruns. For investors, the second-order effects matter: tighter labor markets, higher infrastructure inflation, and political pressure as public projects slip. AI capex is boosting growth in one corner of the economy — but it may be quietly taxing others.

SO YOU WANT TO BUY A BUSINESS… 🏦

Deal of the Week: Heavy Equipment Training & Certification Institute – Asking $1.6M

Opportunity Overview (Listing Here - it’s still for sale!)

This Dallas-area heavy equipment training institute operates in a quietly critical niche: credentialing blue-collar labor for infrastructure, construction, and industrial work.

Founded in 2010, the business provides hands-on certification programs for heavy machinery, with a 50/50 classroom-to-field training model. It is approved by the Veterans Administration and Texas Workforce Commission, enabling students to access grants of up to $50,000 per enrollee — a powerful demand driver that shifts payment risk away from the individual student.

This is not a trade school chasing discretionary tuition dollars.
It’s a workforce infrastructure asset positioned directly in the path of structural labor shortages.

Cash Flow, Assets, and Valuation

The business generates $547K in SDE on $1.05M of revenue, implying exceptionally strong operating leverage.

At a $1.60M asking price, the headline multiple is ~2.9× SDE — attractive for an asset-backed business with regulatory approvals, hard equipment, and real estate included.

Importantly, the deal includes:

• ~$600K of heavy equipment (training machines)

• ~$400K of owned real estate

• Classrooms, training fields, and dormitory facilities

A meaningful portion of the purchase price is backed by hard, depreciable assets, reducing downside risk and improving capital recovery in adverse scenarios.

Why This Works (And Why It’s Timely)

Structural Labor Shortage Tailwind
The U.S. faces a persistent shortage of certified heavy equipment operators driven by:

• Aging trades workforce

• Infrastructure spending (roads, energy, utilities, data centers)

• Immigration constraints

• Declining vocational enrollment

This shortage isn’t cyclical — it’s structural.

Certification = Barrier to Entry
Operating heavy machinery legally requires training, certification, and compliance. That creates:

• Mandatory demand

• Inelastic pricing

• Limited substitution

This is not optional education. It’s a gatekeeper.

Third-Party Payors De-Risk Revenue
VA and Texas Workforce grants shift affordability risk away from students and toward institutions. That stabilizes demand across economic cycles and reduces default risk.

Local Monopoly Characteristics
The business reports no nearby direct competitors, which matters enormously in vocational education. Students rarely travel far for hands-on certification programs.

What We Like

Asset-Backed Cash Flow
You’re buying earnings supported by real estate, equipment, and facilities — not just goodwill.

Regulatory & Institutional Moat
VA and Workforce Commission approvals are hard to obtain and slow to replicate.

Recession-Resilient Demand
When white-collar hiring slows, blue-collar retraining often accelerates.

Scalable Playbook
Growth levers are straightforward:

• Add cohorts

• Increase utilization of equipment

• Expand employer partnerships

• Layer in additional certifications

Clean Transition Profile
One month onsite + extended phone support suggests processes are institutionalized, not owner-dependent.

What We’d Still Pressure-Test

• Capacity utilization of equipment and classrooms

• Revenue mix: VA vs. workforce grants vs. private pay

• Instructor retention and certification depth

• Equipment maintenance CapEx cadence

• Employer placement outcomes (job pipeline strength)

These are diligence items — not thesis breakers.

Bottom Line — Verdict: ✅ Buy / Strong First Bid

This is the kind of business investors routinely overlook because it isn’t flashy.

But it checks the boxes that actually matter:

• Structural demand

• Regulatory barriers

• Asset backing

• Government-supported payment flows

• Labor-market tailwinds

You’re not betting on consumer behavior.
You’re investing in the plumbing of the U.S. labor market.

Think of it like owning the toll booth for skilled labor.
As long as America keeps building things, this business stays relevant — and cash flowing.

This newsletter is for informational purposes only and does not constitute investment advice. The content is based on publicly available information, and the author makes no representations about its accuracy or completeness. Readers should conduct their own research before making any investment decisions.