AWM Insights Financial and Investment News

Private Markets, and specifically, Venture Capital, appeal to investors as they offer outsized returns for those that can accept illiquidity and risk. After we work through those factors for a client and build a dependable financial structure, how do we invest to maximize your opportunity for success?

We are always present in the Private Markets, meeting with fund managers and business operators to identify the best opportunities and stay top of mind for future ventures. Our annual fund structure, presence, and persistence keep us relevant.

There are also segments of the Private Markets that have tactical advantages that we leverage. Known and successful operators have access to the best deals, smaller funds are more agile and can snap up opportunities quickly, and earlier-stage companies give us better entry valuations and hopefully longer runways for capital appreciation.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:55 Our systematic approach to investing in Private Markets
• 3:10 Applying our methodology
• 5:20 How do we build our Venture Portfolio?
• 8:10 What factors do we look for and how do we structure our fund?
• 9:51 Text us!

Private Markets are not open to all investors. There are minimum thresholds that need to be met to qualify individuals to invest in this space. These rules are set to protect smaller, less sophisticated investors from the challenges and complexity of the Private Markets.

On top of the regulatory requirements are implicit hurdles. In Venture specifically, having the funds to invest is not enough to access the best managers and get a seat at the table.

Our Multi-Family Office structure and commitment to networking give our investors strength in numbers and enable us to access the highest quality private offerings.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro 
• 1:28 What is Liquidity and how does it impact Private Investments? 
• 4:45 Why your financial structure needs to be dialed in to invest in Private Investments 
• 6:35 What requirements are needed to invest in Private Markets? 
• 10:13 Why Access matters so much? 
• 14:01 Text us!

Private Markets represent a broad range of asset classes and opportunities for investors. Historically, the best-performing segment of Private Markets has been Venture Capital, which has also significantly outperformed public markets.

Investing in highly innovative companies early in their life cycles is a risky proposition, but if this strategy is implemented correctly, aligned with your financial structure, and the proper Due Diligence is done, it puts you in a position to potentially realize outsized returns.

These are the companies that will be household names in 5 to 10 years, and investing in them now not only improves your expected return but also propels our country and economy forward.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:50 Why do we invest in Private Markets?
• 3:10 Why do we invest in Venture Capital specifically?
• 4:25 What do historical Venture Capital returns look like compared to Public Equity market returns?
• 7:10 Investing in Venture Capital with a multigenerational mindset.
• 8:14 The Impact of Investing in Venture Capital.
• 9:55 Expanding your network and growing your Net Worth through Physical, Intellectual, and Social capital.
• 12:10 Investing in the most innovative companies.
• 14:01 Text us

Athletes and Founders are playing a different game that has its own unique rules and boundaries, from your unorthodox career path and service time to the magnitude of impact your earnings can have.

With the distinct nature of your lives, it is vital to take these rules into account and use them in your favor to maximize your impact. In many cases, this leads to establishing wealth that will outlive you.

This enduring influence must be built around what you value and prioritize and be guided to adapt to the known uncertainty of tomorrow.

This episode touches on how we build portfolios with a multigenerational mindset, and why we use your individual goals as the backbone of your financial structure to create a precision and robust solution that gives you the confidence to succeed.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:40 What do we do when building custom portfolios and why is our process different and more complex?
• 3:33 How do we break out each of your priorities to create a precise portfolio?
• 4:45 How the level of importance of a priority changes the assets and strategies we use?
• 5:47 Having a multigenerational perspective changes portfolio construction
• 7:33 Precision leads to confidence
• 9:29 Planning helps you capture the illiquidity premium while avoiding cash crunches
• 10:10 Text us

The Dollar became the International Reserve Currency in 1944 to establish a common medium of trade in a war-torn world. 

Since then, the Dollar has been trusted by non-US countries to settle transactions for goods, commodities, and services due to its stability, predictability, and broad usage. In recent years, larger countries around the world have been looking to settle transactions in their own currencies.

We discuss the implications of these moves and how it affects the companies you are invested in and your portfolio.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 1:03 The US Dollar’s role in the Global Marketplace
• 4:33 How will Equities perform in a dynamic and evolving currency regime?
• 7:31 How do interest rates, debt issuance, and trade deficits impact currencies?
• 9:22 Do shifting factors and forces in currencies impact your returns?
• 10:24 Why managing volatility and matching your assets to priorities gives you certainty in any environment.
• 14:10 Text us

AI is today’s buzzword, and for good reason. OpenAI’s release of ChatGPT to the public has started a wave of creativity in applications for the broad tool. 

It has started disrupting major fields and industries from education to programming, and we are still in the infancy stage. As promising as any new technology can be, it is important to be diligent and stay true to the fundamentals of investing. Crypto and the Dot Com bubbles are great examples of this.

This technology has a very strong probability of changing our lives and impacting the global economy, and the best way to improve your probabilities of reaping the rewards from AI is to stay diversified, maintain exposure to current players and add new entrants, and stay disciplined.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:31 AI’s impact on our industry and how we are qualifying this investment theme
• 1:39 Maintaining diversification is fundamental
• 2:58 Why it's important to be cautious while new technology is in its infancy phase
• 4:28 Do globally diversified investors already have AI exposure
• 6:20 What happens to trailblazer companies and do they have the best chances to succeed?
• 8:29 Private Markets will also cover the new opportunities in AI

Private Markets come with a very different set of challenges and rewards when compared to Public Markets.

Unlike the Public Markets, there are requirements that need to be met for investors to be able to access Private vehicles as they are illiquid. Private Markets are also much less transparent than their public counterparts and, for that reason, require significantly more due diligence.

There is a large dispersion of returns between Private Market funds due to expertise and manager’s skill, which is not true of Public Markets. Access to these best-in-class managers is very competitive and cannot always be obtained with “just a check”.

All these dynamics make it extremely important to work with a trusted and experienced advisor when thinking about allocating to the Private Markets.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 1:40 What are Private Markets
• 3:04 How Venture Capital and Private Equity fit into Private Markets
• 4:50 Differences between Public and Private Markets
• 7:54 Who can invest in Private Markets
• 9:03 Money alone isn’t enough to get access to the best funds
• 10:50 The logic behind limiting participants and access in Private Markets
• 12:06 Why vintage diversification is so important
• 13:24 Why would you want to participate in Private Markets?
• 14:00 Text us

Markets rarely move sideways without fluctuations. 

Although we may want a smoother path to success, fluctuations and volatility are signs of health in the financial markets and give investors the returns they seek over extended periods of time by weeding out short-term investors and “nervous capital”.

Our role as caretakers of your financial well-being is to create a portfolio that meets your needs, helps you achieve your goals, and weathers the market turbulence to come while keeping you invested and at peace.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:48 Why we build portfolios to weather periods of volatility and give you confidence in times of stress
• 2:47 How creating custom portfolios that are tailored to your needs keeps you away from unnecessary risks that can be found in many cookie-cutter model portfolios
• 5:14 Why volatility in fixed income positions is not relevant with tailored portfolios.
• 6:54 How much attention should you give to your portfolio?
• 7:45 Why volatility isn’t always a bad thing
• 9:10 How we ensure that clients have what they need when they need it and are rewarded for what they defer
• 12:02 Why it is so important to be allocated properly
• 14:10 Text us

It has been a news-filled last few weeks, to say the least!

On a positive note, the silver lining that is evident through the turmoil is that many of these issues can and should have been prevented through the use of proper financial logic and principles.

Whether it was diversification, fixed income management, or market timing, it is clear that going against what we know to be true does not work out. 

Having a robust financial framework that is built around the rules of the markets is the only way to build and protect multi-generational wealth.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 0:43 Update on current events and financial climate.
• 2:50 What is a bank run and how did it happen
• 4:45 How SVB’s mismanagement of their portfolio lead to unacceptable risk
• 6:45 Why we manage bond portfolios to protect against interest rate risk
• 9:10 How we ensure client portfolios are safe and how do we think about cash
• 9:45 How we optimize and protect your cash and safe assets
• 11:40 Venture Update after the issues with SVB
• 13:30 The power of diversification and why it becomes important during times of stress
• 14:50 Text us

Rewarded factors have been integral for investors that seek to outperform the market. 

Instead of guessing and making stock picks, the use of these factors has beaten indices and stock pickers while keeping costs low and staying more tax efficient than active managers.

Incorporating more small, valuable, and profitable companies into your stock portfolio over long periods of time takes advantage of efficient risk that pays off and can supercharge multigenerational returns.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network.

Episode Highlights

• 0:00 Intro
• 1:35 Our general thoughts on Equity management
• 2:20 How do we try to outperform active managers and indexes?
• 3:27 Characteristics of companies that outperform in the market.
• 5:08 How being a long-term investor helps you capture these rewarded factors.
• 7:15 These rewarded factors are proven across different time periods, regimes, and markets.
• 8:32 What does 2% of outperformance means in terms of the magnitude of wealth
• 9:31 How early planning can make huge impacts on your multi-generational wealth
• 11:09 How we add rewarded factors to your portfolio
• 12:45 Text us