Entrepreneurs should think of investments differently compared to nine to five employees. Knowing where to allocate and where not to allocate your resources for the purpose of building investments is a game-changer for an entrepreneur like you. 

In this episode we go deeper on specific asset types and investment that we discussed in our previous episode on building principles for investment. We build specific case studies for fictitious clients and how to build their investment approach. Fictitious clients who earn about $10M per year but with a lot of variation from year to year and have a mix of assets spread across liquid investments, real estate, and as is the case for most entrepreneurs the largest piece of their assets is the equity in their business.

We break down how we work with them on trade offs between Public Markets, Private Markets, Real Estate, and how these pieces work together to accomplish their goals. So for those interested in getting into the tactical details of portfolio management, this episode is for you!

Resources:

 

• Destiny Capital (https://www.destinycapital.com)

What’s Discussed in This Episode: 

1. An overview of today’s episode [3:10]
   1. Difference between two cases - 90% versus 50% tied up in business equity [7:29]
   2. How cash flow makes a difference in the investment types [10:51]
2. Public markets passive investing [6:05]
3. Investments are about creating opportunities not burdens [12:00]
   1. Ways to access municipal debt [12:49]
   2. Advantage of a municipal debt [13:15]
   3. How muni debt can help with tax exemptions on multiple levels [14:39]
   4. Taxable equivalent yield [14:55]
4. Addressing municipal debt [12:37]
   1. Who will benefit from real estate investment? [17:53]
   2. Why people are attracted to real estate as an investment [18:45]
   3. Direct ownership, more illiquid as avenue for better returns [19:15]
5. Real estate [16:22]
6. Comparison of typical yields for different investments [19:41]
   1. Who and who should not invest in private equity [22:36]
7. Private equity [20:44]
   1. Option 1: Doing it direct [24:26]
   2. Option 2: Initial public offering [26:37]
   3. Why venture capital is more impact driven [28:42]
8. Venture capital [24:01]
9. Bitcoin [30:02]
10. Options, strategies and how it shows up in the present environment [33:59]
11. This episode’s ask [38:28]

Connect with Already Successful: 

Subscribe on YouTube: https://www.youtube.com/channel/UCdP-TOyToXAc5iSIA4Ehc6g

Like on Facebook: https://www.facebook.com/AlreadySuccessful/

Connect on LinkedIn: https://www.linkedin.com/company/alreadysuccessful

Follow on Instagram: https://www.instagram.com/alreadysuccessfulpodcast/

See omnystudio.com/listener for privacy information.