September 30, 2021 • 42 mins
Salvatore M. Buscemi is the Chief Investment Officer for Dandrew Partners Capital Management. Mr. Buscemi also is the Managing Partner for several other direct investment vehicles across several asset classes in commercial real estate and credit, fine art private credit facilities, special situations, and several well-performing life sciences investments, among others. Mr. Buscemi is a frequent speaker and guest lecturer on real estate finance at professional symposia and has written numerous articles on the topic of real estate and private equity finance in various publications, including Investor’s Business Daily, Forbes, Entrepreneur, and on television shows such as CBS New York, and Good Morning LaLa Land. Get his latest book by going to InvestingLegacy.com.
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Episode Transcript
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Speaker 1 (00:00):
I'm David Grosso, and you're listening to Follow the Profit.
Thanks to apps like robin Hood, Acorns and we Bowl,
investing is more popular than ever among young people. What
are they treating this wealth building strategy like a game
or get rich quick scheme? When games stopped blew up,
(00:20):
there was a lot of conversation about the fact that
retail investors were inflating the company's price for no reason
and establishment investors were losing money. Of course, platforms like
robin Hood took drastic measures that we had Follow the
Profit probably aren't cool with, like stopping people from trading.
But now young people are buying into new crypto scams
every day, and it seems like gen z needs a
(00:41):
lesson on investing better. Our guest today is just the
guy to teach that lesson. He's the CEO and co
founder of Dan Drew Partners and the author of the
new book Legacy Investing, How the point zero zero one
Percent invest His name is sal what's up? How are you, David?
It's over the top. Thank you, finally we get to talk.
(01:04):
It's been a while. How are you doing. I'm fantastic,
you know, I'm it's it's this world that we live in.
That like, it seems like everyone's investing, but no one
knows what they're doing. So no, it's it's pretty timely
everything everybody is speculating today. That's really what it is.
I mean, that's really what I think. The pandemic is
really wired into our d n A. I think that
(01:26):
we're all somehow gamblers to some degree or not. And
whether it's a sports gambler or you're now gambling on
stocks or crypto, that seems to be the mainstream wave
of creating a living today for many people is to
day trade and speculate. So how do we know how
to invest or how can we learn that? You know?
(01:48):
It's interesting I think people today, especially if you were
to look at what I wrote about in my book,
how the one thousandth of the top one percent invest.
They look at things over a period of lungevit. They
want to know. They usually have impact plans, and you
and I have friends in common, but they have impact
plans that require them looking out twenty forty years into
the future. So they're not going to invest in anything
(02:10):
short term at all. And a lot of the flashy
shiny objects that are coming out are mostly based for
retail people to speculate on, because we're speculative consumer based
society today. Yeah, and it's really interesting because we have
this new class of people, right that just want to
get rich quick schemes, right, and we have our whole society, uh,
(02:30):
you know, built around this idea that let's not do
anything of value. Let's just pump and dump, get out
as fast as possible, and then do nothing, which is
a fundamental philosophical problem in America today. Yeah. Well, it's
also gives them, you know, I think it causes some
sort of a moral hazard internally because everybody has been taught,
especially people older than us who have depression ary parents
(02:53):
or grandparents, who are taught to follow the ways of
Warren Buffett. Right. And Warren Buffett, of course such special
advantages and he does not invests like everyday middle class American,
I can tell you that right now. And he had
advantages working to his favor over the past fifty years. However,
when you look at things today, it seems though the
society is just a couple for many sort of like
long term strength, waiting it out, getting things accomplished, and
(03:17):
when you look at the top one thousand of the
one percent. They're looking more for impact and longevity. They're
looking to cure diseases. They're looking to really established themselves,
and their brand is being something much more permanent, whereas
if you look at the middle class today, they're all
g r q s, get rich quick. It's people who
I know who have no financial background. They'll call me
(03:38):
and the last few what do you think of game stop?
I said, I don't know anything about liquid, you know products,
I don't do anything about that. And it's it's it's
scary too, especially it's how things are trading today, how
many people are just fully invested into this. And my
worry is is just like two thousand and eight, nobody
ever really tells you how much they have into it
until you know you witnessed later on how much they have.
And I saw this with the media or to grow
(04:00):
of bitcoin in two thousand and thirteen. There are a
lot of chiropractors who are telling me about it like
it was the most evangelical moment of their life, and
then they all end it with but I just have
a little bit of money into it, and then you
never hear from them ever again. It's like, well, that
turned out to be a little bit more, and you
know sort of that that money vaporized because it's just
in our DNA today, right, We're in a very consumer
(04:20):
based society. Yeah, it's funny though a lot of times
there's a lot more profit making opportunity in the long
term and nobody realizes that. And even these days, even
corporate America acts that way. We worship at the altar
of the quarterly report and we're not really focused on
how we're going to make money or build sustainable revenue
models over ten of the twenty years now, and that's
(04:41):
a fault in society. I think. I think there's a
lot more money betting on how far a stock will
go than actually how profitable the company will be, and
that to me sort of the couples where the value
is in the liquid treated products such as a stock today,
if you're putting that much money into it and your
long term savings and it's safe and secured and everything
in your four oh one k what have into, the
house burns down and I think a lot of people
(05:01):
are going to find out the hard way, especially going
into an administration that doesn't seem to be every proof
business they're intimating that they might increase rates. And if
they do increase rates and look out below, Yeah, increase
capital gains taxes specifically, that's what you're referring. Oh that too.
I mean that's a tax as well. Right, but I'm
talking about short term interest rates. Well, they're gonna have
(05:22):
to raise interest rates now, I mean they're at zero.
There's nowhere to go here about. But do they But
do they, David? They haven't for the past twenty years, right, No,
they have not. That's correct. In the car places in
the world that have negative interest rates, so they could
go down. I guess that is incorrect. Yes, So yeah,
just because the c f AS textbook says one thing
(05:43):
doesn't necessarily mean that it's going to happen in real life,
as we've seen today, and the pandemic has been a
perfect example of that. So you talked about burning the
house down. Let's talk about how a lot of families,
you know, store their value and that's real estate. What
do you think of real estate as an investment and
specifically how the top one thousands of one percent invests.
(06:05):
I think that's that's a very good question. I think
the same thing that we've seen with stocks today, we've
seen housing be the same speculative instrument because you have
these cable shows, cable channels dedicated to fix her uppers.
And so that's great because the average American can actually
create wealth using single failing homes to speculate on. It's
not really something that you want to have long term rentals.
I can tell you from having a portfolio of over
(06:26):
a thousand single family homes and a distress credit fund.
I had at one point that those tenants you do
not want to have. Um they're very difficult to manage.
So what a lot of wealthy people do is that
they geared towards what we call statement assets. And this
could be office towers in New York or l A
or Orange County what we were talking about before, Or
it could be industrial centers like Amazon fulfillment centers or
(06:46):
things like that. Where should the pandemic happen or occur,
you know that you're gonna go to bed at night
knowing that your tenants are richer than you are, so
you don't think this is gonna play out well. I
I've grew up in a family where we had a
lot of tenants, and I can tell you it's I'm
massive hassle for a lot of people who are buying
real estate. Now. I don't think they know that yet. No,
they don't, But they also don't know. They don't they
(07:08):
they you know, in the problem, And you're right because
a lot of people who are systems oriented come into
real estate thinking that, oh, it's it's a bunch of
homes in a box. You have an eighty unit residential building.
What could go wrong? Well, a lot can go wrong,
and you know when you have different tenants and different
tenant laws. We're starting to see right now that things
are not ending well, and in New York there's a
tremendous amount of pressure there too. So so do you
(07:31):
suggest that people hold just real estate that they live
in and more long term, you know, stable real estate
like you were talking about. I think the best way
for people to participate today, and I really do mean
this is to partner in in private partnerships with people
who are more experienced than you are. And I think
when you start writing checks as an equity investor, rather
(07:52):
than trying to do it yourself, which is what a
lot of people tried to do in two thousand five
six seven, got wiped out in two thousand and eight,
and it's happening all over in it's better to look
over the shoulder of people who are a little more
older and wiser than you are so that you don't
make the same mistakes that they do, because it's never
just about the money for a lot of these families
about it's about their reputation in their brand, and sometimes
(08:13):
they don't want to be implicitly involved in the opportunities
that they don't really know enough about. And if they
follow the leadership is smarter people who are more established
and more experienced, then that's usually seems to be the
way how these newer emerging families seem to insulate themselves
from a lot of risk. So sal one of the
things I tend to look for is even the mention
of one word or a one term, which is real
(08:34):
estate crash. And none of the media is reporting that
that's even a possibility. Do you think that's incorrect? Let
me tell you a story. In two thousand seven eight,
I was walking up and down Park Avenue with a
lot of institutions and hedge funds with a tin cup
out looking to raise money because I thought that there
was going to be a housing crash. People didn't really
believe the thesis. It wasn't until there was one cowboy
(08:56):
firm an institution who said, you know what, we get it,
we like it. They're kind of trarian and the rest
of his history. I think you're gonna see if it happens,
it's going to be a controlled implosion. And the only
way that that could happen right now is that if
there's any sort of contagion where interest rates go up,
and if interest rates go up even twenty basis points
for example, that's going to have a real material effect
(09:20):
on the stock market. And I don't think people really
understand that, is that rates don't have to go up.
They've been conveniently low for a very long period of time.
People have gotten accustomed to it. A whole generation has
gotten accustomed to it. But when things turn around, history
has a way of repeating itself, and is the equity
investors who are the most speculative at this point and
probably the most at risk and the most levered, are
(09:41):
the ones who are going to feel the pain. And
you're gonna see it in real estate too. But that's
where opportunity is to be able to buy assets that
you might not have been able to get into ever before,
maybe Class A whatever, because of the opportunity that the
time is correct. So I think buying right in real
estate and being with smart people with smart shoes is
the best way to go, especially for emerging families who
are looking to protect their reputation. So how do you
(10:03):
even find something to invest in right now? So far
you've talked about equities or stocks that you know, they're
they're kind of property. Real estate is expensive and risks,
repeating the same pattern that we saw in two thousand eight.
So what is their south? What is it accessible for
a regular guy like me, you know, for a regular
guy like you. As far as the income is something
interesting that came out and there's this convention called peer
(10:25):
to peer lending, and people today who really want to
understand and put some savings away and get some income
off of it. And I use it myself, and people
in my firm have used it when we've given bonuses
out they use it as well. But it's actually lending
peer to peer, and you can actually get a very
good interest rate and some good monthly income coming off
of that. Now, the issue with that is that it's unsecured,
(10:46):
so it's basically you're giving you know, unsecured money like
a credit card to someone else. However, it's all pooled
together and you can put in investments for as little
as twenty five dollars. But if you know what you're
doing and you're lending to the right people, it could good.
It could be a good income producing wealth creation mechanism
for people who have anywhere between a thousand dollars to
(11:07):
maybe fifty dollars. Okay, so we have to touch on
the big thing that everyone talks about, crypto. You know,
we have all these diverging opinions, and in fact, I've
made a name for myself by being a crypto commentator
because I'm pro crypto, but I owned none of it,
which is, you know, I guess I'm the only one
you know, what is your idea? Because you know, we
hear some people saying, oh, it's a complete scam, and
(11:27):
we see other people saying like, oh, it's gonna be
the only money in the future. And I'm gonna guess
that you're going to say the truth is somewhere in
the middle. Cell I think it is right now. But remember,
so U just the retail that pays the research and
development for the institutions to understand how this new product
works into the market before it's widely accepted. And that's
what you're starting to see right now. And media has
just allowed these corporations too. And I'm using this word
(11:50):
gas light America by saying, hey, Tesla, is you know
buying all this bitcoin? Oh, Walmart is going to be
taking bitcoin soon. Well they're not. They're all these false flags.
And then you have China too, which says that they're
going to ban crypto because I think that they want
to make sure they have a very stable digital wand
coming out. My thought is is that it is not
I think a store of wealth at this point. It's
(12:11):
it's a great speculative tool for people who want to
speculate on it um, but it's also an identity investment. Right,
So the people who invest in crypto usually have a
different personality than the guys who invest that we know,
invest in venture or invest in real estate. Right. The
crypto guys they were on their sleeve. It's a religion
to them. They you know, they drive a Tesla. They're
(12:32):
evangelical about it. So today, no, it's true it's a
it's a you know, and there's conferences that you and I,
you know, know of where you get trapped in cars
and a tesla and you're just you know, you just
hear this guy talk about and he's imparting his entire
digital personality onto you, quoting things and new coins and
coins that he's into and everything. I like it. I
(12:52):
think it's great. Some of the companies that we have
give us coins as a as a result of inequity
investment that we have into it, and that's the only
exposure we have, except that I had to make a
make good on a bet for a hundred dollars and
I had to get a coin based account because the
guy would insist only taking crypto because he wanted me
to get indoctrinated into the whole crypto thing and start
(13:13):
trading it like he does. And I just, you know,
I haven't gotten involved in it. But I think it's
going to evolve into its own But there's a lot
of competing powers and a lot of old competing powers
that don't want to give up full reserve currency status yet.
And I think people really need to understand that things
are evolving, things are happening much faster, especially from a
socio economic and geopolitical standpoint, So anything can happen right now.
(13:34):
But if you look at El Savador as a proxy
for launching this, it's been kind of rough, to say
the least. And I think there's gonna be a lot
of opportunity during this frontier stage for a lot of
Malfeesians and maybe, you know, bad things to happen while
before this gets sputton down. I've always been shocked by
(14:01):
people just assume that the government and the powers that
we are going to be like, oh, yeah, this is
a thing, no problem, keep on going. And I think
that's very naive of a lot of investors, meaning what
do you mean this is going to keep on meaning
crypto itself? Yeah, that's all. This is now a thing
Like the government's gonna be fine with it there He's
going to be like yeah, sure or whatever. And it
(14:21):
seems like the government's going to clamp down on all
these cryptocurrencies sooner rather than later. I think so too,
because there's been so much money that's been made, right
think about it, There's so much in taxes that have
been made that are probably not reported. And again I
don't know. You know, I don't actively trade any crypto
products whatsoever. I don't even own any. But at some
point the government's gonna want their take as well, and
(14:43):
they have to eye it because if you think about it,
what were people doing the during the entire pandemic. They
were day trading. You created a whole geopolitical, interconnected economy
of people day trading during the pandemic, and that sort
of changed everybody's hardwiring. So of course the government's gonna
want to take advantage of that, I think. So, speaking
of everyone being a day trader suddenly during the pandemic,
(15:03):
what do you think about apps like robin Hood, which
it's almost like playing a game, right, It's like, oh,
I'm gonna buy stocks passively on my phone and hope
for the best. I mean, it's a Junk George approach, right,
I mean, it's like I'm going to drink a diet
coke with my big macmeal and hope for the best too.
And then we found out that all those dirty water
hot dogs that I love in New York City of
(15:24):
Sara Kraut take what twenty three days off your life
that I think I heard, So, you know, we all
have some sort of terminal point I think in our lives.
I just think that, you know, getting getting back to
that is it's I don't know. I mean, there's many
ways to look at it. What what what? What do
(15:45):
you figure it's going to be? What the apps and whatnot?
I mean, I think it's I mean, I think so
here's what I'll say. I think if you look at
and I just I think that there is going to
be increasingly more attention paid to how much dopamine these
companies can get from you in order to get them
addicted to their apps, just like nicotine or anything else
(16:07):
that we've had and robin Hood and these apps make
it very easy for people to become investors because under
the banner of investing and learning how to invest, it's
really becoming a dopamine addictive society for gambling. So that's
my take on it. Of course, at some point I'll
be on it, you know, when I have the time
to do it, and you know, if I if I
want to. But it is something where if you start it,
(16:29):
you don't stop. And I think that these apps are
designed to do that. And if you combine it with
the fractionalization or the you know, the financialization of everything.
You can buy a slither of a share of Google
for one tenth of its price, So these apps make
a lot of money off of those fees because it's
those fragmented, smaller fringe investors that pay the most fees
(16:49):
to be able to buy the lowest common denominator of
the stock. So that might not be the most popular opinion,
but I just put it out there, David. It sounds
pretty accurate to me. I'm not even gonna push back
on you, and that's why I hesitated at first. I
was like, I didn't know they're gonna go with this,
but I'm like, all right, well, you know, anything goes.
I followed the profit. You know, I've made a name
(17:09):
for myself sal asking questions and make good wash. So well, no,
I'm just giving you the hard answer, and I'm not
I know, you didn't invite me to be on here
because I was namby Pamby, So I just want to
make sure I'm also not offending anyone either. I think
if anyone's offended, they need to, you know, recalibrate their
whole you know, the way they observe the world. So
(17:31):
what do we do that. What do the rich do
in an environment like this? Right? They stare at things
like real estate it's expensive. They look at stocks. Oh,
everyone's buying them right now. It doesn't really make a
lot of sense, right, And you know, inflation is higher
than normal as well, so holding on the cash doesn't
seem very prudence either. So where do they stash all
those bajillions of dollars that they have? You know, there's
(17:55):
two there's two things that you're seeing right now. A
lot of it is going into private companies because a
lot of the wealthy have figured out that they have
more control. Newer wealthy people, emerging families have figured out
that they have more control investing in the private stage
companies that have the possibility to go public. So they
have control because they can control the basis for the
price that they invest into, but also the terms. Right
(18:17):
they did they like the CEO? Do? They don't? Whatever. Meanwhile,
if Martha Stewart were to do something stupid again, her
stock price would drop, right, So you know, you got
to look at it from the standpoint is the middle
classes absolutely brainwashed and convinced and convinced that they need
liquidity like oxygen. But when the wealthy have manufacturing companies,
they are throwing off millions of dollars a month and
(18:37):
they're looking to put it somewhere. They have the same
concern as you, but they also have a little more
sophistication and dexterity because they're getting into what I call
private company arbitrage. These companies before they go public, they're
investing into and they're all put together, run and operated,
managed by world class families or operators who have done
this before many times. So for them, the wealthy invest
(18:59):
in people, they're not really looking to invest in the
assets because those are the people who are going to
add another layer to their legacy on the next big
life sciences or whatever industry you have. You know, I
p O. That's really what it comes down to. And
there are real estate opportunities out there too, but they're
mostly clubby types of deals. They're not widely out there
(19:20):
known to the public because they're usually smaller, they're not
usually that big, and um, you know what, the families
are just saying to say, mice go where elephants can't,
and that's really paid off well as far as investment
returns by not going where the big guys are going
but mostly following where the smaller, more nimble, more sophisticated
families are going. Is that a bright spot in the
economy right now because we do live in the golden
(19:41):
age of startups and there are a lot of exciting
companies that are coming onto the scene. And while the
statistics point to you know, low startup rates, it seems
like the startups that are going big are more exciting
than ever they are. But remember, it's cost a fraction
to start a company today than it did even twenty
years ago when I got started. Today it's almost and
(20:01):
I hate to say this, it's almost like there's no
excuse for you not to start a side gig, right.
I mean, how many people do you know who have
friends who are always belly aching that they don't make
enough money or whatever. And the people who control media,
like you are the ones who are really doing very
well because of the fact that you're you know. And
I think that's where it goes. And I talked about
this in my book Investing legacy is at the level
for middle class to achieve well today as media and
(20:25):
you can you know, use any example you want from
someone who's giving stock advice who had left a Wall
Street investment bank, to even someone on TikTok, to even
only fans, this is where we're going today, and when
you follow the trends of you know where that's going.
That could be a good wealth creation mechanism for a
lot of the middle class. But as it relates to
the um wealthy, who have a lot of money and
(20:46):
they're looking to put it away and they're looking to
stockpile that into other things, they have impact statements that
last a much longer period of time, so they're more
interested into you know what we call getting into the
private company private company arbitrre. Maybe it's a life scienist company.
Maybe it's a company that will be acquired by another
larger company in a larger industry, by a multinational. These
(21:08):
are the companies and assets that they're paying attention to
because it gives them the opportunity to deploy money. But
it also gives them the opportunity to really flex in
front of their friends, sort of to speak that they're
a little more sophisticated than their others and yeah, you know,
we have similar friends in common. So they like that
and they like to be known as being proceved more
sophisticated smart because it's just you know, just like anyone else,
(21:29):
they're addicted to it opening too, but they have different
ways of expressing them. So we're about to see one
of the largest wealth transports spurs in history, specifically from
baby boomers to people like us. What do you think
the lessons learned by the very top that are applicable
to you know, every family who has some form of assets, smaller, big,
even if it's just their primary residence. How can the
(21:49):
next generation keep you know, the dream alive. You know,
I mentioned this in the book, and it's something that
we've been working on for the past year and you're
starting to see. You know, during the nine nineties, you
saw a lot of investment banks go public and you
saw a lot of things become spread out then and
with that you saw a lot of bure accuracies where
(22:10):
there are a lot of conflicting maybe ideas politics running
in institutions, none of which has really helped any of
the wealthy families today because their money is going to use,
but they don't really know if it's being used for
anything that benefits them or benefits their wealth manager and
their agenda that they have. So there's a lot of
conflicting agendas in these wealth management firms that we've been
(22:33):
seeing and hearing over the past few years. So these
families want to take more control, but what they want
is more experienced and so what you're starting to see,
and it's it. You know, there's been clubs around that
have been like this forever, Like Harvard Club has an
investment club. You're starting to see more society based investing
where people who have shared common values, whether it's political, religious, whatever,
(22:54):
what have you, are coming together and they're investing um
the cabals of wealth reforming and investing into these private
companies and those are really good, I think going to
be much more influential. You're starting to see these pools
form today. You heard about it with the Art Goes
with the family offices that were involved in that. But
you're starting to see more of uh solidarity among some
of the families that relates to the societies and the
(23:17):
relationships that they have. They only want to be with
people who are like them, and I think that's where
it's going today, is that a lot of people are
looking towards leadership in the form of mentorship and experience
based investing, if you will, so that they understand what
they're doing. Maybe their parents didn't, but at least you
know they have a shot. And if you look around
in Asia and other investment banks such as I can't
(23:37):
remember who it was, but some of them have actually
started like small little day camps for people our age
of wealthy people to come and spend a week in
Singapore to learn go to the formula one but learn
you know, wealth and everything, and really it's like a
primer for private equity and a venture and real estate,
which is great. So the investment banks are doing it,
they're already on top of it. But I think you're
(23:58):
going to see that perculated, especially the ways it's at
he's running today, You're going to start to see people
just start formed cabals of wealth and influence, so investings
of us to solve problems right. And a lot of
these big families, especially in the age of inequality, have
so much money that they of course they want to
you know, retain their wealth, but they also want to
do good. So are you seeing a movement towards the
(24:20):
uber wealthy, towards carrying about the future and maybe environmental issues,
social issues, etcetera. Yeah, you know they the wealthy coined
term and this is a term that's become like for
the point zero zero one percent, is called impact investing.
An impact investing is something that's personal to you. And
in my book Investing Legacy, I say impact investing to
(24:42):
me means different things. I had. You know, my parents died,
I'd like to set up a cause for them for
educational purposes. My brother, um, I would like to set
up something for more like social liberal causes for him.
When what you're where things are going today is that
with these families is that they're looking to brand themselves.
I was saying, hey, I made an impact when I
(25:02):
left this world. Now, it doesn't necessarily mean a billion
trees and a continent you don't live on. But if
you were to look at the stream examples of Elon Musk,
he's made an impact and he is doing something for
the greater of humanity that he feels as though he's doing.
But for today, what a lot of these families are
doing is that they do impact investing because they want
to have some sort of a metric to understand what happens.
(25:24):
What happens if I invest in this company. Well, in
life sciences is the ultimate impact, right, It's you get
bragging rights for life because you have cured or if
helps someone maybe in an oncological you know, in a
cancer situation that your family is going to be able
to say for the rest of their lives that grandma
and grandpa did something different and great and that's where
they are today. And that's where you're starting to see
(25:45):
where a lot of the investors go is what is
the measurable impact to humanity. Another example of this would
be Dolly Parton. Dolly Parton is a superhero today because
she made an investment in during a time when the
world came to a stop, and she that goes to
her superhero legacy. Besides being a fantastic performer, she helped
(26:07):
cure and save the world from a disease. Yeah, well
you're talking about when she donated money to the Majornal
vaccine research. Is that correct? Correct? Yes, correct, yes, yes exactly.
Whereas if you look at the middle class, you know
they'll run like a Susan Cohman thing, but they don't
really know where that money is going. They don't really
care because it's more emotional to them. It's just, oh,
(26:28):
you know, whatever it is, it's it's it's not something,
it's consequential, Whereas with these families, it's their raison, you know,
it is there. The reason for getting up in the
morning and moving is what kind of an impact am
I going to make with the investments, with the capital
and reputation that I have. So I want to talk
(26:55):
about young people here for a second, because we're in
a weird situation, right, those under forty, specifically what I'm
referring to young people, young people young ish. I guess
I still like to think I'm young, right, Um, we're
worth ten times less than the average baby, right, And
that's called into question the whole idea whether market capitalism
(27:15):
works for young people. So, you know, that's why you
see all the movements and you know a lot of
alternatives to our current system, or at least reforms to it.
I think everyone can agree that our system could be
a lot better. Is there any way that you know,
big money people can help, you know, initiate some sort
(27:36):
of change, And I don't know, do something about the situation,
because I feel like the way we're going it endangers
the longevity of market capitalism. Yeah, I do too. But
the corollary and anity that David is that this is
the time in the history of the world where there's
been more individual brands made and millionaires made than it
every time before in history. And all you need, literally
(27:58):
is an iPhone. Sure, So it doesn't make sense to
me for someone to do that when people are doing
I mean, that's really I think what the democrat democrat
you know, democratization, the democratization of capitalism is today is
through technology, is the ability to sell things on eBay,
start a business, do things like that. So I don't
(28:19):
really understand the mindset around that because I've seen people
and people I can tell you stories of people who
I know who make millions of dollars a month online
and they do it and they're no smarter than you
and I. They just happen to have a different drive
and a different value system that gets them to where
they are. But they're using all the tools they can
media technology in order to build their own brand and
(28:42):
create companies for themselves that are meaningful, lasting, sustainable that
they can pass down to their kids. So it's something
that I think. It's it's it's it's a movement. I
don't understand because it's never been easier for anyone to
become an entrepreneur today. I guess it's uh, what you're
saying is true. I guess what simultaneously is true is
that housing, education, healthcare, food, stuff like that is more expensive. Well,
(29:07):
that's that's a different market force, and that's totally that's
contingent upon other things. When you look at housing, that's
largely contingent upon interest rates. People don't like to talk
about it, what it is, right, and when you make
mortgages mortgages available to people, there's more money in the market,
you have more bidders, and then you have people bidding up.
And now we're starting to see some of these people,
especially the younger ones, the youth, you call them under forty,
(29:29):
have buyers or be more s buying homes right now
because they thought it was something that you know, was
going to be a battion of American wealth. But that
hasn't been the case over the past decade. If you
think about it, it has been if you're if you're
you know, houses have gone up in value if you
sold them and you were able to liquidate that. But
the problem is is that where do you move to
next after you sell or move out, or you're gonna
rent and rent her up to as well. So there
(29:50):
is a housing crisis in this country. I think it's
coming to a it's going to come to a precepice
at some point. But it's it's something that is it's
it's a global phenomenon to it's happening all around the world.
And America has always been a safe place to invest.
And before it used to be um money, which just
come over here just because it should be here, because
it's easier to park and stash money. And if you
(30:11):
know anything about Miami real estate, there was a lot
of cash deals that were going on, so it became
unaffordable in those areas, and then you had a lot
of people who are just buying real estate from overseas
for a period of time. And in New York City
you saw that in condos in the time Water Building
where nobody really lived there, they all had lights on.
So today you're starting to see something a little different
that's running you know, to the point is can Americans
afford to live in a house anymore? And that's really
(30:32):
what the question is. So this wanders into politics, so
we have to talk about politics. So it sure of like,
you know, if you were the czar of America, what
would you do to incentivize, you know, or solve these problems.
Let's talk specifically about the housing crisis, you know, because
this is something that eats away at all of us, right,
this is something we can't run away from, right, We
(30:54):
all need to live somewhere. It's not but I also
think that you have to There's a lot of issues
that play here. You have to remember, we have a
lot of inflation. Inflation is man made um and you
also have very low interest rates. And I think if
you were to if you were to move interest rates
just a little bit, I think you'd start to see
a normalization here. Not everybody would lose their homes. I
don't think anybody would have to lose their homes because
(31:15):
they've had so much inflation. But I think you need
to have somewhere where the middle class can benefit from
fiscal policies that benefit them, not just the top one
thousandth of the one percent. And of course everybody's seen
it across the board because when you lower interest rates,
you see that in the stock market. So although the
housing might have gone up. I think the household wealth
(31:38):
has gone up as a result too, as a corollary,
not just in household equity, but also in stocks and
bonds that a lot of people own. Right now. There
are people I know who I never thought would have
as much money as they do, showing me a dinner
a million dollar trading account on each trade, Like, I
never thought that these guys would ever be able to
do that, and sure enough they are, so there is
a lot of money there. But I think for the
(31:58):
lower middle class of people who are not what I
consider to be the entrepreneur class in society today, and
those are the youth right there are the people who
are either entrepreneur and they have their own businesses or
they're going off into institutional America doing something else. I
think for the people who are the non you know,
the non entrepreneurial class, they're gonna have difficult times because
at some point, wages are just not going to be
(32:21):
able to keep up with things the way they are
right now. And that's where there's going to be a
lot of problems. How you rein that in could be
any number of ways. Healthcare that's always been the third rail.
But I think when you start looking at housing, that's
going to be much more of an interesting play. I
hate to see the day where American retirees can't afford
to retire an American and have to retire to like
(32:41):
somewhere else, you know, in South America. Any of the
commercials we see on TV to buy a second house,
and that could happen because the price of living in
New York, I'm sorry, in America could hit levels where
it's almost unaffordable to keep property, and it's become prohibitive
in certain points. I think for people even to catch
up with it, and until things change a little bit,
it's better for people to just wait and not get
(33:03):
psychologically involved in it because it's always dark. As before, Dawn,
I don't know what's going to happen right now, and
if you look at the three trillion dollars that the
government is looking to push through and all sorts of
other I call an incendiary events fiscally, you don't know
where it's going to be. And maybe being a renter
is probably the best bet for most Americans today because
(33:23):
it gives them the mobility to not be locked into
a mortgage and if they lose a job or should
want to take a different career path in life, would
be much easier for them to do that. Yeah, I
was faced with that because I just moved to a
new market. I moved to Los Angeles from Florida, and
I sold my house and I was looking at just,
you know, what I would have to borrow and what
I would have to buy, and basically there's no reason
(33:45):
for me to buy. And that's antithetical to everything we
push in our society, because we think about permanence, we
think about settling down, and it's almost seemed silly as
someone who's from an immigrant family. I grew up in Miami.
We're Cuban, you know, we're all into this notion of
prompt But basically what I'm looking at is throwing six
figures down the drain and then paying more than I
(34:06):
would have with rent, which signals to me that maybe
the market is a bit too high. Right now, You're right, Yeah,
I think you just sit back and rent. I just
think you just sit back and rent because everything cyclical
some point. So reason interest rates is touchy, though, right,
because I mean we have gotten so used to, as
you've mentioned in this interview several times, low interest rates.
(34:27):
The government's addicted to debt, our corporate sector is addicted
to cheap money. And really, if we were to raise
interest rates, as you say, inflation woul temper and things
would normalize. But there'll be a lot of pain from
doing that. Yeah, it would. It's not going to be
it's not going to be easy. But what are the
other what are the other choices that we have right now?
(34:49):
I guess you can say go to war. That's one way.
I mean we've done that before, right, I mean, there's
other way. It's not a popular opinion right now, but
the that is what's needed I think at this point
to put the world off of the debt bench. I'm
not saying it's going to happen. I'm not saying practical,
practicality or pragmatically it's going to happen. Technically, if it
(35:10):
does happen, it's going to cause problems. Leverage right now,
everything is so leverage. And you even said just twenty
five basis points, that's nothing. We used to do that regularly,
just to you know, I mean that was the Greenspan days. Yeah,
in a pre financial crisis world, things moving basis points
(35:30):
was not even big news. Yeah, but then again, you
have homes today that have increased in value by fifties sometimes,
so we're back to where we were before, pre two
thou eight levels with the big mansions and the prices
and things being over bought and people over paying for things,
and you know, sellers could you know, no concessions from
(35:51):
sellers and buyers writing love letters to the sellers to
buy homes. I mean, this is the buyer's market we're in,
I'm sorry, a seller's market that we're in right now,
and that's going to be very difficult to change age
unless people get buyers fatigued because they just are tapped
out there two over leveraged. Six months after buying a house,
they figured out, you know what, we can't really afford
to have the Christmas presents that we want. Maybe this
wasn't such a good idea after all. Maybe it should
(36:13):
be something where we should rent this out, or maybe
we should do something different. And I think you'll see
that happen because I think a lot of people got
into these homes thinking that it was going to be
a lifetime um investment. But you have to think about it.
Our parents didn't refinance their homes as many times as
our generation did, right, especially your parents that they were Cuban,
they probably had no debt and I'm just assuming that, um,
(36:35):
most of the girls don't have any debt. Okay, so
most immigrants don't have any debt, So you know, with them,
to them, that was a real stable of wealth because
for them that was wealth. But for the Americans, the homes,
do they really own it or they really renting it?
Think about it, if you're buying it and you're using
a you know, VH a loan LTV and you're coming
in with fifty dollars on a million dollar home, do
(36:57):
you really own it or do you really lease it?
And really what's the who's really winning that equation right there?
And I think to your point, I'd rather be a
renter in this market than being a buyer. So are
we ever going to raise interest rates? Or are we
stuck in a trap here during the Biden administration where
they're going to struggle to raise it? Well, I mean,
are we in a free market right now? Are we
(37:17):
not in a free market? Uh? It seems like a
free market to me, But you know, okay, so I
mean it feels like but it feels like at any
given point, maybe the current administration could raise rates just
because they feel like it, correct like they've done anything else,
like they've done because they feel like it. Yeah they could. Yeah,
(37:38):
I mean, the FAT is supposedly an independent institution, not
that it seems to act that way anymore. But no,
it's not. I don't it's not. I mean, but you
and I both know it's not, because that's what presidential
candidates talk about for the past two election cycles, is
the FAT and interest rates. And even Trump was a
king of debt to self proclaimed king of debt, and
he added four trillion or two hundred years worth of
(37:59):
debt to this country in eighteen months. So anything, I
don't think, Okay, So I don't see And I used
to say this that I didn't see any and I'm
forty six years old, and I said this when I
was like thirty nine, you know, shooting my mouth off,
raising capital, you know, trying to make a name for myself.
And I said that there was no catalyst for race
(38:20):
to increase in my lifetime. And people looked at me like, like,
I said, did he say, jelly? You know what? You know, Like,
what did he say? And it was very awkward, but
now people who are starting to see it. But I
think that the caveat to that now is that this
current administration, you don't know what could happen. It's it
doesn't seem to be as stable as prior administrations, which
(38:40):
means that anything can happen at any time, right, And
you know, we really don't know what's going to happen
with the Federal Reserve. We don't know what kind of
pressures there are with that. We don't know what's going
to happen with a three trillion dollar you know, five trillion,
whatever the number is today. These are numbers I never
even thought that we would be thinking about even twenty
years ago, and now we're way over the brink of that.
(39:03):
And that's going to have consequences. So yeah, there there,
there is going to have There are going to be consequences.
I just don't know when the levy breaks, but it's
getting to the point now where it has to rate
to me, have to go up in order to keep
credibility for people to keep buying bonds. And if that
means taking air out of the stock market and killing
some Middle American investors in their four own case, they're
(39:26):
gonna think so be it right, because that's really what
they need to do. They need to keep the economy going.
America has always been a safe place. Where else is
all that money going to go? We don't know yet.
It's certainly not all going to crypto yet. So leaving
you here, So the top zero zero point one percent,
(39:47):
are they expecting interest rates to go up? Do they
see that? Is you still we started this with the
point zero zero one percent have a long term view
on being Yeah. They I think at this they see
it as being you know, prepare for the worst, but
hope for the best. Hope for the best meaning interest
rates do increase, but prepare for the worst, meaning that
they're not going to increase. And so what they're doing
(40:09):
is they're getting in the more like inflation type things
like fine art, you know, like things like that. Sports
teams are trading because that's a huge store. If well,
think about at the end, the the NFL is a
I mean, think about the brand protection, the fierce brand
protection they have being an owner of that as a
statement assets, so those have increased too, is a beneficiary
of interest rates. I was talking to someone in my
(40:30):
book who their steak went from two fifty million, two
fifty million dollars too, I think over a billion dollars
in the last five years, um because of the fact,
maybe because of interest rate sports, maybe sports betting. But
those are what the point zero zero one percent are
investing in, those types of assets that are not traditional
(40:50):
to you and me, but to them are assets that
really not only define who they are, but they also
are tremendous um you know, holders of value. So well,
that was a fascinating conversation. I think I'd learned a
thing or two from you. Sal thank you more about you.
So your book is called Legacy Investing. How the point
(41:11):
zero zero one percent invest Hopefully I don't mess up
the zeros that's you probably had to etch that into
your brain. So that's the only math in the book,
though I promised that's the only bath that's in the book. Awesome, Well,
thank you so much for making the time for me.
I look forward to seeing you soon. Thank you, David,
I appreciate it. Thank you, Take care. This was a
(41:37):
really important conversation if you want to understand where the
world is going and how you can really profit off
of what's coming next, which, of course no one knows
what comes next, but having the information to read the
tea leaves always helps. If you're interested in our guests more.
He has a website, it's investing Legacy dot com. Again.
His name was Salvator Salvatore Boushem meaning lish uh you know,
(42:02):
sell someone I know, and he always gives me the
inside scoop about everything that's going on in the world.
I'd like to thank my team of producers, Rob Scott
Cheyenne and our executive producers New Gingrich and Debbie Myers.
I am, of course your host, David Grosso. If you're
enjoying the show, please give us five stars and leave
us a review so that others can learn what the
show is all about. Follow The profit is a production
(42:23):
of Gingwich through sixty and i Heeart Radio. For more
podcasts for my heart Radio, visit the iHeart Radio app,
Apple podcast, or wherever you get your podcasts. Part of
the Gingwich three s network
I'm David Grosso, and you're listening to Follow the Profit.
Thanks to apps like robin Hood, Acorns and we Bowl,
investing is more popular than ever among young people. What
are they treating this wealth building strategy like a game
or get rich quick scheme? When games stopped blew up,
(00:20):
there was a lot of conversation about the fact that
retail investors were inflating the company's price for no reason
and establishment investors were losing money. Of course, platforms like
robin Hood took drastic measures that we had Follow the
Profit probably aren't cool with, like stopping people from trading.
But now young people are buying into new crypto scams
every day, and it seems like gen z needs a
(00:41):
lesson on investing better. Our guest today is just the
guy to teach that lesson. He's the CEO and co
founder of Dan Drew Partners and the author of the
new book Legacy Investing, How the point zero zero one
Percent invest His name is sal what's up? How are you, David?
It's over the top. Thank you, finally we get to talk.
(01:04):
It's been a while. How are you doing. I'm fantastic,
you know, I'm it's it's this world that we live in.
That like, it seems like everyone's investing, but no one
knows what they're doing. So no, it's it's pretty timely
everything everybody is speculating today. That's really what it is.
I mean, that's really what I think. The pandemic is
really wired into our d n A. I think that
(01:26):
we're all somehow gamblers to some degree or not. And
whether it's a sports gambler or you're now gambling on
stocks or crypto, that seems to be the mainstream wave
of creating a living today for many people is to
day trade and speculate. So how do we know how
to invest or how can we learn that? You know?
(01:48):
It's interesting I think people today, especially if you were
to look at what I wrote about in my book,
how the one thousandth of the top one percent invest.
They look at things over a period of lungevit. They
want to know. They usually have impact plans, and you
and I have friends in common, but they have impact
plans that require them looking out twenty forty years into
the future. So they're not going to invest in anything
(02:10):
short term at all. And a lot of the flashy
shiny objects that are coming out are mostly based for
retail people to speculate on, because we're speculative consumer based
society today. Yeah, and it's really interesting because we have
this new class of people, right that just want to
get rich quick schemes, right, and we have our whole society, uh,
(02:30):
you know, built around this idea that let's not do
anything of value. Let's just pump and dump, get out
as fast as possible, and then do nothing, which is
a fundamental philosophical problem in America today. Yeah. Well, it's
also gives them, you know, I think it causes some
sort of a moral hazard internally because everybody has been taught,
especially people older than us who have depression ary parents
(02:53):
or grandparents, who are taught to follow the ways of
Warren Buffett. Right. And Warren Buffett, of course such special
advantages and he does not invests like everyday middle class American,
I can tell you that right now. And he had
advantages working to his favor over the past fifty years. However,
when you look at things today, it seems though the
society is just a couple for many sort of like
long term strength, waiting it out, getting things accomplished, and
(03:17):
when you look at the top one thousand of the
one percent. They're looking more for impact and longevity. They're
looking to cure diseases. They're looking to really established themselves,
and their brand is being something much more permanent, whereas
if you look at the middle class today, they're all
g r q s, get rich quick. It's people who
I know who have no financial background. They'll call me
(03:38):
and the last few what do you think of game stop?
I said, I don't know anything about liquid, you know products,
I don't do anything about that. And it's it's it's
scary too, especially it's how things are trading today, how
many people are just fully invested into this. And my
worry is is just like two thousand and eight, nobody
ever really tells you how much they have into it
until you know you witnessed later on how much they have.
And I saw this with the media or to grow
(04:00):
of bitcoin in two thousand and thirteen. There are a
lot of chiropractors who are telling me about it like
it was the most evangelical moment of their life, and
then they all end it with but I just have
a little bit of money into it, and then you
never hear from them ever again. It's like, well, that
turned out to be a little bit more, and you
know sort of that that money vaporized because it's just
in our DNA today, right, We're in a very consumer
(04:20):
based society. Yeah, it's funny though a lot of times
there's a lot more profit making opportunity in the long
term and nobody realizes that. And even these days, even
corporate America acts that way. We worship at the altar
of the quarterly report and we're not really focused on
how we're going to make money or build sustainable revenue
models over ten of the twenty years now, and that's
(04:41):
a fault in society. I think. I think there's a
lot more money betting on how far a stock will
go than actually how profitable the company will be, and
that to me sort of the couples where the value
is in the liquid treated products such as a stock today,
if you're putting that much money into it and your
long term savings and it's safe and secured and everything
in your four oh one k what have into, the
house burns down and I think a lot of people
(05:01):
are going to find out the hard way, especially going
into an administration that doesn't seem to be every proof
business they're intimating that they might increase rates. And if
they do increase rates and look out below, Yeah, increase
capital gains taxes specifically, that's what you're referring. Oh that too.
I mean that's a tax as well. Right, but I'm
talking about short term interest rates. Well, they're gonna have
(05:22):
to raise interest rates now, I mean they're at zero.
There's nowhere to go here about. But do they But
do they, David? They haven't for the past twenty years, right, No,
they have not. That's correct. In the car places in
the world that have negative interest rates, so they could
go down. I guess that is incorrect. Yes, So yeah,
just because the c f AS textbook says one thing
(05:43):
doesn't necessarily mean that it's going to happen in real life,
as we've seen today, and the pandemic has been a
perfect example of that. So you talked about burning the
house down. Let's talk about how a lot of families,
you know, store their value and that's real estate. What
do you think of real estate as an investment and
specifically how the top one thousands of one percent invests.
(06:05):
I think that's that's a very good question. I think
the same thing that we've seen with stocks today, we've
seen housing be the same speculative instrument because you have
these cable shows, cable channels dedicated to fix her uppers.
And so that's great because the average American can actually
create wealth using single failing homes to speculate on. It's
not really something that you want to have long term rentals.
I can tell you from having a portfolio of over
(06:26):
a thousand single family homes and a distress credit fund.
I had at one point that those tenants you do
not want to have. Um they're very difficult to manage.
So what a lot of wealthy people do is that
they geared towards what we call statement assets. And this
could be office towers in New York or l A
or Orange County what we were talking about before, Or
it could be industrial centers like Amazon fulfillment centers or
(06:46):
things like that. Where should the pandemic happen or occur,
you know that you're gonna go to bed at night
knowing that your tenants are richer than you are, so
you don't think this is gonna play out well. I
I've grew up in a family where we had a
lot of tenants, and I can tell you it's I'm
massive hassle for a lot of people who are buying
real estate. Now. I don't think they know that yet. No,
they don't, But they also don't know. They don't they
(07:08):
they you know, in the problem, And you're right because
a lot of people who are systems oriented come into
real estate thinking that, oh, it's it's a bunch of
homes in a box. You have an eighty unit residential building.
What could go wrong? Well, a lot can go wrong,
and you know when you have different tenants and different
tenant laws. We're starting to see right now that things
are not ending well, and in New York there's a
tremendous amount of pressure there too. So so do you
(07:31):
suggest that people hold just real estate that they live
in and more long term, you know, stable real estate
like you were talking about. I think the best way
for people to participate today, and I really do mean
this is to partner in in private partnerships with people
who are more experienced than you are. And I think
when you start writing checks as an equity investor, rather
(07:52):
than trying to do it yourself, which is what a
lot of people tried to do in two thousand five
six seven, got wiped out in two thousand and eight,
and it's happening all over in it's better to look
over the shoulder of people who are a little more
older and wiser than you are so that you don't
make the same mistakes that they do, because it's never
just about the money for a lot of these families
about it's about their reputation in their brand, and sometimes
(08:13):
they don't want to be implicitly involved in the opportunities
that they don't really know enough about. And if they
follow the leadership is smarter people who are more established
and more experienced, then that's usually seems to be the
way how these newer emerging families seem to insulate themselves
from a lot of risk. So sal one of the
things I tend to look for is even the mention
of one word or a one term, which is real
(08:34):
estate crash. And none of the media is reporting that
that's even a possibility. Do you think that's incorrect? Let
me tell you a story. In two thousand seven eight,
I was walking up and down Park Avenue with a
lot of institutions and hedge funds with a tin cup
out looking to raise money because I thought that there
was going to be a housing crash. People didn't really
believe the thesis. It wasn't until there was one cowboy
(08:56):
firm an institution who said, you know what, we get it,
we like it. They're kind of trarian and the rest
of his history. I think you're gonna see if it happens,
it's going to be a controlled implosion. And the only
way that that could happen right now is that if
there's any sort of contagion where interest rates go up,
and if interest rates go up even twenty basis points
for example, that's going to have a real material effect
(09:20):
on the stock market. And I don't think people really
understand that, is that rates don't have to go up.
They've been conveniently low for a very long period of time.
People have gotten accustomed to it. A whole generation has
gotten accustomed to it. But when things turn around, history
has a way of repeating itself, and is the equity
investors who are the most speculative at this point and
probably the most at risk and the most levered, are
(09:41):
the ones who are going to feel the pain. And
you're gonna see it in real estate too. But that's
where opportunity is to be able to buy assets that
you might not have been able to get into ever before,
maybe Class A whatever, because of the opportunity that the
time is correct. So I think buying right in real
estate and being with smart people with smart shoes is
the best way to go, especially for emerging families who
are looking to protect their reputation. So how do you
(10:03):
even find something to invest in right now? So far
you've talked about equities or stocks that you know, they're
they're kind of property. Real estate is expensive and risks,
repeating the same pattern that we saw in two thousand eight.
So what is their south? What is it accessible for
a regular guy like me, you know, for a regular
guy like you. As far as the income is something
interesting that came out and there's this convention called peer
(10:25):
to peer lending, and people today who really want to
understand and put some savings away and get some income
off of it. And I use it myself, and people
in my firm have used it when we've given bonuses
out they use it as well. But it's actually lending
peer to peer, and you can actually get a very
good interest rate and some good monthly income coming off
of that. Now, the issue with that is that it's unsecured,
(10:46):
so it's basically you're giving you know, unsecured money like
a credit card to someone else. However, it's all pooled
together and you can put in investments for as little
as twenty five dollars. But if you know what you're
doing and you're lending to the right people, it could good.
It could be a good income producing wealth creation mechanism
for people who have anywhere between a thousand dollars to
(11:07):
maybe fifty dollars. Okay, so we have to touch on
the big thing that everyone talks about, crypto. You know,
we have all these diverging opinions, and in fact, I've
made a name for myself by being a crypto commentator
because I'm pro crypto, but I owned none of it,
which is, you know, I guess I'm the only one
you know, what is your idea? Because you know, we
hear some people saying, oh, it's a complete scam, and
(11:27):
we see other people saying like, oh, it's gonna be
the only money in the future. And I'm gonna guess
that you're going to say the truth is somewhere in
the middle. Cell I think it is right now. But remember,
so U just the retail that pays the research and
development for the institutions to understand how this new product
works into the market before it's widely accepted. And that's
what you're starting to see right now. And media has
just allowed these corporations too. And I'm using this word
(11:50):
gas light America by saying, hey, Tesla, is you know
buying all this bitcoin? Oh, Walmart is going to be
taking bitcoin soon. Well they're not. They're all these false flags.
And then you have China too, which says that they're
going to ban crypto because I think that they want
to make sure they have a very stable digital wand
coming out. My thought is is that it is not
I think a store of wealth at this point. It's
(12:11):
it's a great speculative tool for people who want to
speculate on it um, but it's also an identity investment. Right,
So the people who invest in crypto usually have a
different personality than the guys who invest that we know,
invest in venture or invest in real estate. Right. The
crypto guys they were on their sleeve. It's a religion
to them. They you know, they drive a Tesla. They're
(12:32):
evangelical about it. So today, no, it's true it's a
it's a you know, and there's conferences that you and I,
you know, know of where you get trapped in cars
and a tesla and you're just you know, you just
hear this guy talk about and he's imparting his entire
digital personality onto you, quoting things and new coins and
coins that he's into and everything. I like it. I
(12:52):
think it's great. Some of the companies that we have
give us coins as a as a result of inequity
investment that we have into it, and that's the only
exposure we have, except that I had to make a
make good on a bet for a hundred dollars and
I had to get a coin based account because the
guy would insist only taking crypto because he wanted me
to get indoctrinated into the whole crypto thing and start
(13:13):
trading it like he does. And I just, you know,
I haven't gotten involved in it. But I think it's
going to evolve into its own But there's a lot
of competing powers and a lot of old competing powers
that don't want to give up full reserve currency status yet.
And I think people really need to understand that things
are evolving, things are happening much faster, especially from a
socio economic and geopolitical standpoint, So anything can happen right now.
(13:34):
But if you look at El Savador as a proxy
for launching this, it's been kind of rough, to say
the least. And I think there's gonna be a lot
of opportunity during this frontier stage for a lot of
Malfeesians and maybe, you know, bad things to happen while
before this gets sputton down. I've always been shocked by
(14:01):
people just assume that the government and the powers that
we are going to be like, oh, yeah, this is
a thing, no problem, keep on going. And I think
that's very naive of a lot of investors, meaning what
do you mean this is going to keep on meaning
crypto itself? Yeah, that's all. This is now a thing
Like the government's gonna be fine with it there He's
going to be like yeah, sure or whatever. And it
(14:21):
seems like the government's going to clamp down on all
these cryptocurrencies sooner rather than later. I think so too,
because there's been so much money that's been made, right
think about it, There's so much in taxes that have
been made that are probably not reported. And again I
don't know. You know, I don't actively trade any crypto
products whatsoever. I don't even own any. But at some
point the government's gonna want their take as well, and
(14:43):
they have to eye it because if you think about it,
what were people doing the during the entire pandemic. They
were day trading. You created a whole geopolitical, interconnected economy
of people day trading during the pandemic, and that sort
of changed everybody's hardwiring. So of course the government's gonna
want to take advantage of that, I think. So, speaking
of everyone being a day trader suddenly during the pandemic,
(15:03):
what do you think about apps like robin Hood, which
it's almost like playing a game, right, It's like, oh,
I'm gonna buy stocks passively on my phone and hope
for the best. I mean, it's a Junk George approach, right,
I mean, it's like I'm going to drink a diet
coke with my big macmeal and hope for the best too.
And then we found out that all those dirty water
hot dogs that I love in New York City of
(15:24):
Sara Kraut take what twenty three days off your life
that I think I heard, So, you know, we all
have some sort of terminal point I think in our lives.
I just think that, you know, getting getting back to
that is it's I don't know. I mean, there's many
ways to look at it. What what what? What do
(15:45):
you figure it's going to be? What the apps and whatnot?
I mean, I think it's I mean, I think so
here's what I'll say. I think if you look at
and I just I think that there is going to
be increasingly more attention paid to how much dopamine these
companies can get from you in order to get them
addicted to their apps, just like nicotine or anything else
(16:07):
that we've had and robin Hood and these apps make
it very easy for people to become investors because under
the banner of investing and learning how to invest, it's
really becoming a dopamine addictive society for gambling. So that's
my take on it. Of course, at some point I'll
be on it, you know, when I have the time
to do it, and you know, if I if I
want to. But it is something where if you start it,
(16:29):
you don't stop. And I think that these apps are
designed to do that. And if you combine it with
the fractionalization or the you know, the financialization of everything.
You can buy a slither of a share of Google
for one tenth of its price, So these apps make
a lot of money off of those fees because it's
those fragmented, smaller fringe investors that pay the most fees
(16:49):
to be able to buy the lowest common denominator of
the stock. So that might not be the most popular opinion,
but I just put it out there, David. It sounds
pretty accurate to me. I'm not even gonna push back
on you, and that's why I hesitated at first. I
was like, I didn't know they're gonna go with this,
but I'm like, all right, well, you know, anything goes.
I followed the profit. You know, I've made a name
(17:09):
for myself sal asking questions and make good wash. So well, no,
I'm just giving you the hard answer, and I'm not
I know, you didn't invite me to be on here
because I was namby Pamby, So I just want to
make sure I'm also not offending anyone either. I think
if anyone's offended, they need to, you know, recalibrate their
whole you know, the way they observe the world. So
(17:31):
what do we do that. What do the rich do
in an environment like this? Right? They stare at things
like real estate it's expensive. They look at stocks. Oh,
everyone's buying them right now. It doesn't really make a
lot of sense, right, And you know, inflation is higher
than normal as well, so holding on the cash doesn't
seem very prudence either. So where do they stash all
those bajillions of dollars that they have? You know, there's
(17:55):
two there's two things that you're seeing right now. A
lot of it is going into private companies because a
lot of the wealthy have figured out that they have
more control. Newer wealthy people, emerging families have figured out
that they have more control investing in the private stage
companies that have the possibility to go public. So they
have control because they can control the basis for the
price that they invest into, but also the terms. Right
(18:17):
they did they like the CEO? Do? They don't? Whatever. Meanwhile,
if Martha Stewart were to do something stupid again, her
stock price would drop, right, So you know, you got
to look at it from the standpoint is the middle
classes absolutely brainwashed and convinced and convinced that they need
liquidity like oxygen. But when the wealthy have manufacturing companies,
they are throwing off millions of dollars a month and
(18:37):
they're looking to put it somewhere. They have the same
concern as you, but they also have a little more
sophistication and dexterity because they're getting into what I call
private company arbitrage. These companies before they go public, they're
investing into and they're all put together, run and operated,
managed by world class families or operators who have done
this before many times. So for them, the wealthy invest
(18:59):
in people, they're not really looking to invest in the
assets because those are the people who are going to
add another layer to their legacy on the next big
life sciences or whatever industry you have. You know, I
p O. That's really what it comes down to. And
there are real estate opportunities out there too, but they're
mostly clubby types of deals. They're not widely out there
(19:20):
known to the public because they're usually smaller, they're not
usually that big, and um, you know what, the families
are just saying to say, mice go where elephants can't,
and that's really paid off well as far as investment
returns by not going where the big guys are going
but mostly following where the smaller, more nimble, more sophisticated
families are going. Is that a bright spot in the
economy right now because we do live in the golden
(19:41):
age of startups and there are a lot of exciting
companies that are coming onto the scene. And while the
statistics point to you know, low startup rates, it seems
like the startups that are going big are more exciting
than ever they are. But remember, it's cost a fraction
to start a company today than it did even twenty
years ago when I got started. Today it's almost and
(20:01):
I hate to say this, it's almost like there's no
excuse for you not to start a side gig, right.
I mean, how many people do you know who have
friends who are always belly aching that they don't make
enough money or whatever. And the people who control media,
like you are the ones who are really doing very
well because of the fact that you're you know. And
I think that's where it goes. And I talked about
this in my book Investing legacy is at the level
for middle class to achieve well today as media and
(20:25):
you can you know, use any example you want from
someone who's giving stock advice who had left a Wall
Street investment bank, to even someone on TikTok, to even
only fans, this is where we're going today, and when
you follow the trends of you know where that's going.
That could be a good wealth creation mechanism for a
lot of the middle class. But as it relates to
the um wealthy, who have a lot of money and
(20:46):
they're looking to put it away and they're looking to
stockpile that into other things, they have impact statements that
last a much longer period of time, so they're more
interested into you know what we call getting into the
private company private company arbitrre. Maybe it's a life scienist company.
Maybe it's a company that will be acquired by another
larger company in a larger industry, by a multinational. These
(21:08):
are the companies and assets that they're paying attention to
because it gives them the opportunity to deploy money. But
it also gives them the opportunity to really flex in
front of their friends, sort of to speak that they're
a little more sophisticated than their others and yeah, you know,
we have similar friends in common. So they like that
and they like to be known as being proceved more
sophisticated smart because it's just you know, just like anyone else,
(21:29):
they're addicted to it opening too, but they have different
ways of expressing them. So we're about to see one
of the largest wealth transports spurs in history, specifically from
baby boomers to people like us. What do you think
the lessons learned by the very top that are applicable
to you know, every family who has some form of assets, smaller, big,
even if it's just their primary residence. How can the
(21:49):
next generation keep you know, the dream alive. You know,
I mentioned this in the book, and it's something that
we've been working on for the past year and you're
starting to see. You know, during the nine nineties, you
saw a lot of investment banks go public and you
saw a lot of things become spread out then and
with that you saw a lot of bure accuracies where
(22:10):
there are a lot of conflicting maybe ideas politics running
in institutions, none of which has really helped any of
the wealthy families today because their money is going to use,
but they don't really know if it's being used for
anything that benefits them or benefits their wealth manager and
their agenda that they have. So there's a lot of
conflicting agendas in these wealth management firms that we've been
(22:33):
seeing and hearing over the past few years. So these
families want to take more control, but what they want
is more experienced and so what you're starting to see,
and it's it. You know, there's been clubs around that
have been like this forever, Like Harvard Club has an
investment club. You're starting to see more society based investing
where people who have shared common values, whether it's political, religious, whatever,
(22:54):
what have you, are coming together and they're investing um
the cabals of wealth reforming and investing into these private
companies and those are really good, I think going to
be much more influential. You're starting to see these pools
form today. You heard about it with the Art Goes
with the family offices that were involved in that. But
you're starting to see more of uh solidarity among some
of the families that relates to the societies and the
(23:17):
relationships that they have. They only want to be with
people who are like them, and I think that's where
it's going today, is that a lot of people are
looking towards leadership in the form of mentorship and experience
based investing, if you will, so that they understand what
they're doing. Maybe their parents didn't, but at least you
know they have a shot. And if you look around
in Asia and other investment banks such as I can't
(23:37):
remember who it was, but some of them have actually
started like small little day camps for people our age
of wealthy people to come and spend a week in
Singapore to learn go to the formula one but learn
you know, wealth and everything, and really it's like a
primer for private equity and a venture and real estate,
which is great. So the investment banks are doing it,
they're already on top of it. But I think you're
(23:58):
going to see that perculated, especially the ways it's at
he's running today, You're going to start to see people
just start formed cabals of wealth and influence, so investings
of us to solve problems right. And a lot of
these big families, especially in the age of inequality, have
so much money that they of course they want to
you know, retain their wealth, but they also want to
do good. So are you seeing a movement towards the
(24:20):
uber wealthy, towards carrying about the future and maybe environmental issues,
social issues, etcetera. Yeah, you know they the wealthy coined
term and this is a term that's become like for
the point zero zero one percent, is called impact investing.
An impact investing is something that's personal to you. And
in my book Investing Legacy, I say impact investing to
(24:42):
me means different things. I had. You know, my parents died,
I'd like to set up a cause for them for
educational purposes. My brother, um, I would like to set
up something for more like social liberal causes for him.
When what you're where things are going today is that
with these families is that they're looking to brand themselves.
I was saying, hey, I made an impact when I
(25:02):
left this world. Now, it doesn't necessarily mean a billion
trees and a continent you don't live on. But if
you were to look at the stream examples of Elon Musk,
he's made an impact and he is doing something for
the greater of humanity that he feels as though he's doing.
But for today, what a lot of these families are
doing is that they do impact investing because they want
to have some sort of a metric to understand what happens.
(25:24):
What happens if I invest in this company. Well, in
life sciences is the ultimate impact, right, It's you get
bragging rights for life because you have cured or if
helps someone maybe in an oncological you know, in a
cancer situation that your family is going to be able
to say for the rest of their lives that grandma
and grandpa did something different and great and that's where
they are today. And that's where you're starting to see
(25:45):
where a lot of the investors go is what is
the measurable impact to humanity. Another example of this would
be Dolly Parton. Dolly Parton is a superhero today because
she made an investment in during a time when the
world came to a stop, and she that goes to
her superhero legacy. Besides being a fantastic performer, she helped
(26:07):
cure and save the world from a disease. Yeah, well
you're talking about when she donated money to the Majornal
vaccine research. Is that correct? Correct? Yes, correct, yes, yes exactly.
Whereas if you look at the middle class, you know
they'll run like a Susan Cohman thing, but they don't
really know where that money is going. They don't really
care because it's more emotional to them. It's just, oh,
(26:28):
you know, whatever it is, it's it's it's not something,
it's consequential, Whereas with these families, it's their raison, you know,
it is there. The reason for getting up in the
morning and moving is what kind of an impact am
I going to make with the investments, with the capital
and reputation that I have. So I want to talk
(26:55):
about young people here for a second, because we're in
a weird situation, right, those under forty, specifically what I'm
referring to young people, young people young ish. I guess
I still like to think I'm young, right, Um, we're
worth ten times less than the average baby, right, And
that's called into question the whole idea whether market capitalism
(27:15):
works for young people. So, you know, that's why you
see all the movements and you know a lot of
alternatives to our current system, or at least reforms to it.
I think everyone can agree that our system could be
a lot better. Is there any way that you know,
big money people can help, you know, initiate some sort
(27:36):
of change, And I don't know, do something about the situation,
because I feel like the way we're going it endangers
the longevity of market capitalism. Yeah, I do too. But
the corollary and anity that David is that this is
the time in the history of the world where there's
been more individual brands made and millionaires made than it
every time before in history. And all you need, literally
(27:58):
is an iPhone. Sure, So it doesn't make sense to
me for someone to do that when people are doing
I mean, that's really I think what the democrat democrat
you know, democratization, the democratization of capitalism is today is
through technology, is the ability to sell things on eBay,
start a business, do things like that. So I don't
(28:19):
really understand the mindset around that because I've seen people
and people I can tell you stories of people who
I know who make millions of dollars a month online
and they do it and they're no smarter than you
and I. They just happen to have a different drive
and a different value system that gets them to where
they are. But they're using all the tools they can
media technology in order to build their own brand and
(28:42):
create companies for themselves that are meaningful, lasting, sustainable that
they can pass down to their kids. So it's something
that I think. It's it's it's it's a movement. I
don't understand because it's never been easier for anyone to
become an entrepreneur today. I guess it's uh, what you're
saying is true. I guess what simultaneously is true is
that housing, education, healthcare, food, stuff like that is more expensive. Well,
(29:07):
that's that's a different market force, and that's totally that's
contingent upon other things. When you look at housing, that's
largely contingent upon interest rates. People don't like to talk
about it, what it is, right, and when you make
mortgages mortgages available to people, there's more money in the market,
you have more bidders, and then you have people bidding up.
And now we're starting to see some of these people,
especially the younger ones, the youth, you call them under forty,
(29:29):
have buyers or be more s buying homes right now
because they thought it was something that you know, was
going to be a battion of American wealth. But that
hasn't been the case over the past decade. If you
think about it, it has been if you're if you're
you know, houses have gone up in value if you
sold them and you were able to liquidate that. But
the problem is is that where do you move to
next after you sell or move out, or you're gonna
rent and rent her up to as well. So there
(29:50):
is a housing crisis in this country. I think it's
coming to a it's going to come to a precepice
at some point. But it's it's something that is it's
it's a global phenomenon to it's happening all around the world.
And America has always been a safe place to invest.
And before it used to be um money, which just
come over here just because it should be here, because
it's easier to park and stash money. And if you
(30:11):
know anything about Miami real estate, there was a lot
of cash deals that were going on, so it became
unaffordable in those areas, and then you had a lot
of people who are just buying real estate from overseas
for a period of time. And in New York City
you saw that in condos in the time Water Building
where nobody really lived there, they all had lights on.
So today you're starting to see something a little different
that's running you know, to the point is can Americans
afford to live in a house anymore? And that's really
(30:32):
what the question is. So this wanders into politics, so
we have to talk about politics. So it sure of like,
you know, if you were the czar of America, what
would you do to incentivize, you know, or solve these problems.
Let's talk specifically about the housing crisis, you know, because
this is something that eats away at all of us, right,
this is something we can't run away from, right, We
(30:54):
all need to live somewhere. It's not but I also
think that you have to There's a lot of issues
that play here. You have to remember, we have a
lot of inflation. Inflation is man made um and you
also have very low interest rates. And I think if
you were to if you were to move interest rates
just a little bit, I think you'd start to see
a normalization here. Not everybody would lose their homes. I
don't think anybody would have to lose their homes because
(31:15):
they've had so much inflation. But I think you need
to have somewhere where the middle class can benefit from
fiscal policies that benefit them, not just the top one
thousandth of the one percent. And of course everybody's seen
it across the board because when you lower interest rates,
you see that in the stock market. So although the
housing might have gone up. I think the household wealth
(31:38):
has gone up as a result too, as a corollary,
not just in household equity, but also in stocks and
bonds that a lot of people own. Right now. There
are people I know who I never thought would have
as much money as they do, showing me a dinner
a million dollar trading account on each trade, Like, I
never thought that these guys would ever be able to
do that, and sure enough they are, so there is
a lot of money there. But I think for the
(31:58):
lower middle class of people who are not what I
consider to be the entrepreneur class in society today, and
those are the youth right there are the people who
are either entrepreneur and they have their own businesses or
they're going off into institutional America doing something else. I
think for the people who are the non you know,
the non entrepreneurial class, they're gonna have difficult times because
at some point, wages are just not going to be
(32:21):
able to keep up with things the way they are
right now. And that's where there's going to be a
lot of problems. How you rein that in could be
any number of ways. Healthcare that's always been the third rail.
But I think when you start looking at housing, that's
going to be much more of an interesting play. I
hate to see the day where American retirees can't afford
to retire an American and have to retire to like
(32:41):
somewhere else, you know, in South America. Any of the
commercials we see on TV to buy a second house,
and that could happen because the price of living in
New York, I'm sorry, in America could hit levels where
it's almost unaffordable to keep property, and it's become prohibitive
in certain points. I think for people even to catch
up with it, and until things change a little bit,
it's better for people to just wait and not get
(33:03):
psychologically involved in it because it's always dark. As before, Dawn,
I don't know what's going to happen right now, and
if you look at the three trillion dollars that the
government is looking to push through and all sorts of
other I call an incendiary events fiscally, you don't know
where it's going to be. And maybe being a renter
is probably the best bet for most Americans today because
(33:23):
it gives them the mobility to not be locked into
a mortgage and if they lose a job or should
want to take a different career path in life, would
be much easier for them to do that. Yeah, I
was faced with that because I just moved to a
new market. I moved to Los Angeles from Florida, and
I sold my house and I was looking at just,
you know, what I would have to borrow and what
I would have to buy, and basically there's no reason
(33:45):
for me to buy. And that's antithetical to everything we
push in our society, because we think about permanence, we
think about settling down, and it's almost seemed silly as
someone who's from an immigrant family. I grew up in Miami.
We're Cuban, you know, we're all into this notion of
prompt But basically what I'm looking at is throwing six
figures down the drain and then paying more than I
(34:06):
would have with rent, which signals to me that maybe
the market is a bit too high. Right now, You're right, Yeah,
I think you just sit back and rent. I just
think you just sit back and rent because everything cyclical
some point. So reason interest rates is touchy, though, right,
because I mean we have gotten so used to, as
you've mentioned in this interview several times, low interest rates.
(34:27):
The government's addicted to debt, our corporate sector is addicted
to cheap money. And really, if we were to raise
interest rates, as you say, inflation woul temper and things
would normalize. But there'll be a lot of pain from
doing that. Yeah, it would. It's not going to be
it's not going to be easy. But what are the
other what are the other choices that we have right now?
(34:49):
I guess you can say go to war. That's one way.
I mean we've done that before, right, I mean, there's
other way. It's not a popular opinion right now, but
the that is what's needed I think at this point
to put the world off of the debt bench. I'm
not saying it's going to happen. I'm not saying practical,
practicality or pragmatically it's going to happen. Technically, if it
(35:10):
does happen, it's going to cause problems. Leverage right now,
everything is so leverage. And you even said just twenty
five basis points, that's nothing. We used to do that regularly,
just to you know, I mean that was the Greenspan days. Yeah,
in a pre financial crisis world, things moving basis points
(35:30):
was not even big news. Yeah, but then again, you
have homes today that have increased in value by fifties sometimes,
so we're back to where we were before, pre two
thou eight levels with the big mansions and the prices
and things being over bought and people over paying for things,
and you know, sellers could you know, no concessions from
(35:51):
sellers and buyers writing love letters to the sellers to
buy homes. I mean, this is the buyer's market we're in,
I'm sorry, a seller's market that we're in right now,
and that's going to be very difficult to change age
unless people get buyers fatigued because they just are tapped
out there two over leveraged. Six months after buying a house,
they figured out, you know what, we can't really afford
to have the Christmas presents that we want. Maybe this
wasn't such a good idea after all. Maybe it should
(36:13):
be something where we should rent this out, or maybe
we should do something different. And I think you'll see
that happen because I think a lot of people got
into these homes thinking that it was going to be
a lifetime um investment. But you have to think about it.
Our parents didn't refinance their homes as many times as
our generation did, right, especially your parents that they were Cuban,
they probably had no debt and I'm just assuming that, um,
(36:35):
most of the girls don't have any debt. Okay, so
most immigrants don't have any debt, So you know, with them,
to them, that was a real stable of wealth because
for them that was wealth. But for the Americans, the homes,
do they really own it or they really renting it?
Think about it, if you're buying it and you're using
a you know, VH a loan LTV and you're coming
in with fifty dollars on a million dollar home, do
(36:57):
you really own it or do you really lease it?
And really what's the who's really winning that equation right there?
And I think to your point, I'd rather be a
renter in this market than being a buyer. So are
we ever going to raise interest rates? Or are we
stuck in a trap here during the Biden administration where
they're going to struggle to raise it? Well, I mean,
are we in a free market right now? Are we
(37:17):
not in a free market? Uh? It seems like a
free market to me, But you know, okay, so I
mean it feels like but it feels like at any
given point, maybe the current administration could raise rates just
because they feel like it, correct like they've done anything else,
like they've done because they feel like it. Yeah they could. Yeah,
(37:38):
I mean, the FAT is supposedly an independent institution, not
that it seems to act that way anymore. But no,
it's not. I don't it's not. I mean, but you
and I both know it's not, because that's what presidential
candidates talk about for the past two election cycles, is
the FAT and interest rates. And even Trump was a
king of debt to self proclaimed king of debt, and
he added four trillion or two hundred years worth of
(37:59):
debt to this country in eighteen months. So anything, I
don't think, Okay, So I don't see And I used
to say this that I didn't see any and I'm
forty six years old, and I said this when I
was like thirty nine, you know, shooting my mouth off,
raising capital, you know, trying to make a name for myself.
And I said that there was no catalyst for race
(38:20):
to increase in my lifetime. And people looked at me like, like,
I said, did he say, jelly? You know what? You know, Like,
what did he say? And it was very awkward, but
now people who are starting to see it. But I
think that the caveat to that now is that this
current administration, you don't know what could happen. It's it
doesn't seem to be as stable as prior administrations, which
(38:40):
means that anything can happen at any time, right, And
you know, we really don't know what's going to happen
with the Federal Reserve. We don't know what kind of
pressures there are with that. We don't know what's going
to happen with a three trillion dollar you know, five trillion,
whatever the number is today. These are numbers I never
even thought that we would be thinking about even twenty
years ago, and now we're way over the brink of that.
(39:03):
And that's going to have consequences. So yeah, there there,
there is going to have There are going to be consequences.
I just don't know when the levy breaks, but it's
getting to the point now where it has to rate
to me, have to go up in order to keep
credibility for people to keep buying bonds. And if that
means taking air out of the stock market and killing
some Middle American investors in their four own case, they're
(39:26):
gonna think so be it right, because that's really what
they need to do. They need to keep the economy going.
America has always been a safe place. Where else is
all that money going to go? We don't know yet.
It's certainly not all going to crypto yet. So leaving
you here, So the top zero zero point one percent,
(39:47):
are they expecting interest rates to go up? Do they
see that? Is you still we started this with the
point zero zero one percent have a long term view
on being Yeah. They I think at this they see
it as being you know, prepare for the worst, but
hope for the best. Hope for the best meaning interest
rates do increase, but prepare for the worst, meaning that
they're not going to increase. And so what they're doing
(40:09):
is they're getting in the more like inflation type things
like fine art, you know, like things like that. Sports
teams are trading because that's a huge store. If well,
think about at the end, the the NFL is a
I mean, think about the brand protection, the fierce brand
protection they have being an owner of that as a
statement assets, so those have increased too, is a beneficiary
of interest rates. I was talking to someone in my
(40:30):
book who their steak went from two fifty million, two
fifty million dollars too, I think over a billion dollars
in the last five years, um because of the fact,
maybe because of interest rate sports, maybe sports betting. But
those are what the point zero zero one percent are
investing in, those types of assets that are not traditional
(40:50):
to you and me, but to them are assets that
really not only define who they are, but they also
are tremendous um you know, holders of value. So well,
that was a fascinating conversation. I think I'd learned a
thing or two from you. Sal thank you more about you.
So your book is called Legacy Investing. How the point
(41:11):
zero zero one percent invest Hopefully I don't mess up
the zeros that's you probably had to etch that into
your brain. So that's the only math in the book,
though I promised that's the only bath that's in the book. Awesome, Well,
thank you so much for making the time for me.
I look forward to seeing you soon. Thank you, David,
I appreciate it. Thank you, Take care. This was a
(41:37):
really important conversation if you want to understand where the
world is going and how you can really profit off
of what's coming next, which, of course no one knows
what comes next, but having the information to read the
tea leaves always helps. If you're interested in our guests more.
He has a website, it's investing Legacy dot com. Again.
His name was Salvator Salvatore Boushem meaning lish uh you know,
(42:02):
sell someone I know, and he always gives me the
inside scoop about everything that's going on in the world.
I'd like to thank my team of producers, Rob Scott
Cheyenne and our executive producers New Gingrich and Debbie Myers.
I am, of course your host, David Grosso. If you're
enjoying the show, please give us five stars and leave
us a review so that others can learn what the
show is all about. Follow The profit is a production
(42:23):
of Gingwich through sixty and i Heeart Radio. For more
podcasts for my heart Radio, visit the iHeart Radio app,
Apple podcast, or wherever you get your podcasts. Part of
the Gingwich three s network
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