00:01
So here we're supposed to make an argument about why intangible versus tangible resources are going to be a more durable form of sustainable competitive advantage.
00:10
And a competitive advantage is something that you can do that the other people can't, right? if you and the other person can both do the same things, have the same business, have the same business model, there's no competitive advantage.
00:21
For a competitive advantage, you need to be able to do something they can't.
00:25
The problem with tangible resources, most of these are traded goods, right? if i think of oil or rare earth metals or, say, even like hydro energy, most of these things, say, gas, etc., they're traded.
00:48
And that means if your business relies on these things, you can just go and buy them in the marketplace, right? anything that's traded can be bought.
00:58
And so if i need oil for my business, i can just buy it in the global market for oil, right? there are very few tangible resources that are prevented from trading.
01:08
I can't think of any off the top of my head.
01:11
Most tangible things have a market.
01:14
They can be put on a ship and sent around the world, right? but human capital and intellectual assets cannot be traded...