Why the $53B Construction Boom is a "Financial Death Trap" |🦖EP1391 #investingiguana
🟩 A massive $53 billion construction boom is projected for Singapore in 2026, and the headlines are intoxicating. Your retail instinct is likely screaming at you to buy the builders responsible for our expanding skyline, envisioning dividends flooding your bank account. But be warned: if you are loading up on main contractors, you are walking straight into a "Revenue Trap." In the construction sector, revenue is vanity, and the "Fixed-Price Tender" model means you might be buying a business with capped upside and unlimited downside risk.
In this breakdown, I explain why the smart money is ignoring the "diggers" and buying the "shovels." We are going back to basics to understand the structural rot of fixed-price contracts versus the power of "Operating Leverage" found in material suppliers. I’ll show you why a low Price-to-Book ratio on a contractor isn't a bargain—it's often a warning sign of future write-downs. We dissect the specific mechanics that allow suppliers to capture the volume of this boom without inheriting the execution risks that crush contractor margins.
Read the full in-depth article with video at
YOUTUBE ➡️ https://youtu.be/LOG30o2kQrk
SUBSTACK ➡️ https://open.substack.com/pub/investingiguana/p/why-the-53b-construction-boom-is?r=5enmf1&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true
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