My tweets are a journal of where I’m putting my capital, so don’t blindly follow me without DD & research.
I won’t do newsletters, capital raising without skin in the game, fleecing LPs with 50% promotes, gathering AUM masquerading as investors & other dubious finance practices.
Newsletter writers need to promote action, advice, tips and new ideas for their clientele to trade every week or month.
I bought some stocks first time since September last year. No one will subscribe to sub stack where every week I tell them most assets are not attractive. 😂
You also have these real estate GPs & fund managers who are convinced they can find great deals after a 12 year bull market where valuations are at nose bleed levels and CAP rates are at record lows.
Every new deal they raise, your money is making them HUGE fees & promotes.
Hedge fund managers and private equity funds are just in the business of gathering AUM — asset gathering.
They don’t make money for themselves by prudent investing and compounding capital, but rather by gathering assets and having bigger annual fees.
It’s a disgrace! 😂👍🏽
Finance industry and all of its sub industries is really a place where one fellow is attempting to get ahead of many others with unfair advantages and dubious practices — but they call that “hustling”.
Yes, there are some honest people, but they are fair & few in between.
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Evergrande should have defaulted years ago, so this isn't a surprise.
As an investor, I do hope the Chinese don't follow the footsteps of the West, especially the Europeans, who bailed everything and everyone out — creating a zombie economy.
Risks haven't been there for only a month, they have been there for a long time.
If the Chinese economy goes through a property market de-leveraging, it will be very painful in the short term, but create a fantastic buying opportunity.
To become a great investor, focus on a multidisciplinary mindset (become a generalist).
"Most of us study something specific and don’t get exposure to the big ideas of other disciplines. We don’t develop the multidisciplinary mindset that we need to accurately see a problem."
"An engineer will often think in terms of systems by default.
A psychologist will think in terms of incentives.
A business person might think in terms of opportunity cost & risk-reward.
Through their disciplines, each of these people sees part of the situation."
Applying a "multidisciplinary mindset" forces inspiring portfolio managers to have knowledge in psychology & human behavior, ancient & modern history, fundamental securities analysis, accounting, macroeconomics, experience in negotiating, running a business, and so much more.
Our portfolio allocation is somewhat planned, but to a great extent very much accidental, as it's based upon "value" offered in different assets, regions & capital stack positions at any given time in the cycle.
In other words, it is more of an art than science.
It can be added that many other market participants do not behave under such mandate, since they are far more authoritarian in their allocation approach.
Rather than searching for value currently on offer, they'll keep buying overpriced assets as it's within their comfort zone.
Flexibility & patience are our edges to mitigate risks & outperform.
As public equities become overpriced we're likely to sidestep into real estate. And when it becomes overpriced, we'll consider special niches like litigation funding, mezzanine debt, or distressed PE deals.