On today’s show we are talking about how last week’s drone attack in Russia will forever change the way investments are made in military equipment and warfare in general.
The economy in the US is being bolstered by a significant amount of defence spending. Europe is about to increase its defence spending on a large scale. The same can be said for Canada.
Conventional warfare has been based on the premise that the biggest baddest army will overwhelm an enemy and crush any opposition. That notion got challenged in some of the most prominent writings including Sun Tzu who wrote “The Art of War” in the 6th Century BC. It was employed during the Byzantine Empire along its eastern front in the 8th and 10th centuries.
Sure you can shoot a $1000 drone out of the sky with a million dollar Patriot missile. But is that an efficient defence against these new threats?
Now this is a real estate show, not a military show. We’re here to talk about real estate. When we think of real estate investment one of the principles is that demand for real estate follows employment.
When we think of military industrial complex it conjures up images of companies like Lockheed Martin, Harris, Honeywell, Textron. These companies drive major employment.
But increasingly the military industry is seeing a lot of new entrants. One of my business partners runs a incubator that is focused on the defence industry in Colorado Springs. This facility is conducting some of the most advanced research and development on new military systems.
The speed and agility with which the Ukraine has modernized its underdog military is a lesson for countries looking to modernize their military.
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