June 14, 2023 • 37 mins
Rashad Jennings and Lindsey McCormick from Glenn King from Oakmount and PartnersSee omnystudio.com/listener for privacy information.
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Episode Transcript
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Speaker 1 (00:02):
Well in a world, in a world such as we
sort of live in today, you can't help but fall
out of better make money and I can come into that.
You know, money, Money has long been a crash term
in my opinion, but money is ultimately what makes the
world go around, and there's numerous vehicles globally that we
(00:22):
can sort of tap into.
Speaker 2 (00:24):
On this episode of the Bag.
Speaker 3 (00:30):
I've got another one who's got a better one? Beg,
look in the mirror. The petitor beg, get in my
bag and a bag for my leggings. You ain't got
a better?
Speaker 2 (00:39):
Of course the reference be yeah, yeah, I got a credit.
Speaker 4 (00:43):
So we have our guests for the evening, Glenn King
coming out of UK representing Oak Mount and partners.
Speaker 2 (00:52):
How are you doing today?
Speaker 1 (00:54):
I'm very good, very good, indeed, thank you.
Speaker 2 (00:56):
I'm excellent. I'm excellent.
Speaker 4 (00:58):
So we want to know how do you make money?
Speaker 1 (01:06):
Well in a world, in a world such as we
sort of live in today, you can't help but fall
out of bed and make money, and I can come
into that. You know, money, Money has long been a
crass term in my opinion, but money is ultimately what
makes the world go around, and there's numerous vehicles globally
that we can sort of tap into. But you know,
(01:29):
the world, bear in mind that we've sort of we're
coming out of the mists of a very difficult period
of COVID globally. That was something that none of us
had been through before, so we had to adjust ourselves accordingly,
and it was a very very difficult roadmap. But ultimately
out of that, I actually think that it's fast tracked
business five six, seven years plus because we've now moved
(01:53):
this whole digital world that we're now in has brought
businesses sort of right up to the twenty first century
and much beyond. But also there's casualties, and the casualties
are going to be those companies, those businesses or those enterprises,
if you will, globally that if they're not able to
(02:15):
cut their cloth accordingly and adjust and be adaptable to change,
they're redundant. And when you're redundant, of course, it's very
difficult to make money in a market that is ultimately
very very aggressive.
Speaker 4 (02:31):
Gotcha and tell us a little bit about what you
do at Oak Melt.
Speaker 1 (02:37):
So, Oak Mount and Partners is a business that I
built some fourteen years ago now, and my sort of
overall ambition and goal was to build a business that
was to last long after my passing. I wanted it
was a legacy play for me, and my sort of
(02:57):
goal is to be able to bring about opportunity for participants,
for investors, be it corporate entities, private clients, and so forth,
to navigate the investing platform and world as it stands,
but to simplify it because ultimately, in the world of investing,
we're looking at a number of major components, but really
(03:20):
it boils down to this, how much does it cost,
how much will it make? What's the maturity term? Now
for me personally? You know, decisions made in haste are
really good decisions. So we have to have a more
mid term to long term view on our investment strategy.
And there is a wealth of opportunity out there. We're
(03:40):
a commodity driven firm as such, so we raise expansion
capital for big mining operations that have got a green
envelope to them in so much that they produce a
plethora of minerals and metals that go into the EV market,
electric vehicle market, coupled with technology iPhone, smartphones, tablets, and
(04:02):
also going to construction. So we one of our materials
we produce is something called metakalene and that goes into
green cement, so it pushes out no CO two. So
everything has a green window to it, and it's about sustainability,
and that's where we see the modern world going. It's
you know, there's this there's been a heavy reliance upon
(04:25):
you know, petrol vehicles as such, but of course with Tesla,
the whole world is now focused on electric and there's
twos and fours in that market. But ultimately we're moving
into something that's much more green than sustainable in my view.
Speaker 5 (04:40):
So, speaking of future trends, have you noticed it all?
It seems like AI really is the future as well.
You've got chat GBT taking away people's jobs, making people
have the ability to have more than one job because
they can use chat GBT. Do you feel like, well,
how are people using AI to pick stock market picks?
(05:05):
And do you, from your position, feel like clients are
more interested in AI and what are the future trends
for that?
Speaker 2 (05:15):
Yeah?
Speaker 1 (05:16):
AI is. I mean it's just literally within the last
sort of six to twelve months, even this year, the
change that I've seen is monumental. Chat GPT has sort
of just come out of nowhere and it's just blown
the whole system up. But of course there's lots of
new AI systems that are kicking into touch now as well.
(05:38):
I don't want to say it's a fear as such,
but my concern with AI is this AI effectively stems
from human input, but it's now exceeding the way in
which we think because it can think in a much,
much quicker fashion. So what is going to happen to
the environment when you've got smartphones? I was watching a
documentary is a few months back or maybe just for
(06:00):
Christmas now, and they we're talking about the reliance of
children on smartphones. You know, children at eight nineteen years
old have got them. But of course when you go
on to messaging services, what does it do. It has
predicted text. So it's actually taking away out to a degree,
our ability to think because it does everything for you.
So actually the learning that we once had through secondary
(06:23):
school through to junior is disappearing, and it's almost like
we're not keeping hold of, you know, just the basic
fundamentals good grammar, good English spelling, and so on and
so forth, because it's all done for us. So that,
for me is a dangerous thing. Human input I still
think is very very important. It's one thing speaking to
(06:44):
a machine. But this whole world of AI for me personally,
I think it's going to transform the landscape across multiple sectors.
The money markets and investment markets is just one component
of that. Can I see AI taking over the likes
of the London Stock Exchange and the money markets here
in the UK or even Wall Street? Potentially yes, But
(07:08):
then one of the likes of Gold and Sex and
JP Morgan some of the larger investment back banks. What
are they going to do and what's it going to
do to their workforce? It guess time will tell, right.
Speaker 4 (07:21):
I heard somebody say that it won't be a I
that replaces you, it will be a person that's using
AI that replaces you. So in other words, I think
what they were trying to reference is that it's a
tool you know, and use it how you will.
Speaker 2 (07:43):
You know.
Speaker 4 (07:43):
It's no different from a tool than a construction site. Right,
It's not.
Speaker 2 (07:47):
It's not.
Speaker 4 (07:48):
It's not per se that the that the chainsaw is
replacing a person or taking over.
Speaker 2 (07:54):
It's a person using a chainsaw that is taking over.
Speaker 1 (07:59):
And without action, it can absolutely enhance a business. And
you know, the one thing that from the moment we
get up in the mornings until the moment we go
to see it's how quick can we get it done?
You know, how quick can I get up and make
that cup of coffee, which means I'm on the road
quicker to my eyeline of business or work for me.
Chap GBT has been a game changer. And from the
(08:20):
way I would explain it is this. Ordinarily I would
come in, I would be put in corporate brochures, perspectives together,
I AMS and a whole manner of different things that
would go out to our client bank. That is very,
very time consuming. You're dealing with elements of compliance, You're
dealing with the wording itself, the content, the layout. I
can go into chat GPT now and say, please draft
(08:42):
an email regarding an inbound inquiry and why our business
would best suit the investors' ambitions of financial freedom and
wealth creation, and it will come up with paragraphs and
all you've got to do is just choose through it
and extrapolate. It's just so simil. But I like to
think my face, we'd like to give it that human touch.
(09:04):
Otherwise it almost sounds to machine, like there's no element
of emotion to it, and there needs to be. And
that's where I find it doesn't really give that at
the moment, but that could very well change it. Of course.
Speaker 5 (09:19):
I love that you touched on the need for human communication.
It seems like as technology advances, we have more ways
to communicate with others than ever, but we're losing that
personal touch of communication. I really felt it personally during
the pandemic, where here I was doing zoom calls and
(09:39):
face times and texting more than ever, but it felt
like I had this need for personal communication and physical
touch and face to face communication. How do you feel
like our society is going to miss out or struggle
(09:59):
as we start to drift even more away from that
personal touch, like you were saying, like it's there is
that limitation currently with AI.
Speaker 1 (10:10):
I mean, I'm utterly astounded. You've only got to go
into you know, for me frequently, I'm very frequently in
London on business here West London, Mayfair area, I mean clients,
I'm on the road a lot. But the one thing
I can say to you is this going into London,
London is a wonderful city. It's played with you know,
some difficulties, like lots of major cities are, but you've
(10:33):
only got to walk through central London and most people
nowadays are doing this and literally walking down the street
with that in front of them, paying no attention to
anyone or anything. A friend of mine. This sounds a
little bit macab but I wanted to lead into it
because it touches on this very point. A friend of
mine fairly recently was mugged in London, which sounds horrific,
(10:55):
and it was a bit of an ordeal for him.
Nobody went to his aid, but everybody around him was
filming it.
Speaker 2 (11:03):
Wow, there isn't.
Speaker 1 (11:05):
That an appalling thing that you're in your moment of
I mean, that must have been a really harrowing experience
to go through and to know that there's nobody at
your aid, but yet they've got the time to just
sit there and record because we'll put it on social
media and we'll get likes. The human touch is gone
because it's all about what attention can I get from
(11:26):
the next best story. I just don't get it. You know,
for my forty four years on the planet, we've lost
touch of what ultimately brings people together, and that is
the art of communication. And if you master that, you know,
as the adage goes, words move mountains, and we need
to come back to the basics. You know, long long
(11:49):
has it been that things can very easily get misconstrued, misunderstood,
but based on sensible conversation between sensible people, you can
do anything. But just lost sight, they've lost touch, And
quite where it's going is beyond me. But I would
like to think that we did come back to basics
and come back together and push for a greater cause
(12:10):
of wellbeing globally. That's that's what it's all.
Speaker 4 (12:13):
About, you know, that's get kind of getting into a
philosophical look right on life for sure. And I could,
I could chase facing down any rabbit hole.
Speaker 1 (12:27):
But that's a conversation for another day.
Speaker 4 (12:31):
Yeah, man, And you know, and I do want to
get into a few of those things. But one question
I do have obviously been in the NFL plan for
eight years.
Speaker 2 (12:40):
We have Lamar Jackson, who.
Speaker 4 (12:43):
Has now signed the largest contract in NFL history by himself.
Speaker 2 (12:49):
No agent shout out to him.
Speaker 4 (12:51):
Obviously, he was oxtracizeder saying that he couldn't sign a
deal without an agent. You know, it's an entire matrix
system with having an age and whether you should or
should not, that's a discrepancy we can get into. But however,
he signed one hundred and thirty five million dollars signing
bonus one hundred and eighty five million dollars guaranteed. With
(13:14):
that being said, can what amount let's say, what amount
of money would you say an individual needs to have
to be able to invest properly, maturely, conservatively, without major
risk at all in order to not be able to
(13:36):
work a day in their life again. And if they
want to live in a budget, let's say one hundred
and fifty to two hundred K, what is the magic
number that they need in their bank account in order
to properly invest and not have to work corporate again.
Speaker 1 (13:55):
It's a very good question, and you know, had you
have asked me that a few years back, my answer
would be very different because we dealt with a different
type of client. We are sort of a little bit
longer in the tooth now, So for us here in
the UK, we generally only deal with transactions from one
hundred thousand pounds plus and the reason being is that
we are know we tend to deal with corporate entities,
(14:19):
high network individuals that have got successful businesses or have
sold out whatever, that would be our normal that would
be our normal go to client. You don't actually have
to have, you know, two three four hundred thousand pounds
income per annum to be a very successful investor and
build a very very profitable portfolio. But it's consistency and
(14:42):
it's understanding what you're doing for me. Why diversification is
a bit of a no note because I think when
you're spread too thinly, you expose yourself actually a lot more.
We have diversification diversification to a degree, but I think
if you're consistent in your approach and you have a
mid to long term view, the one thing that makes
(15:03):
people good returns and enables your portfolio to blossom is
compound interest. So when you're compounding and not necessarily reliant
on the income that you make in your portfolio and
you let it grow exponentially over a period, that's a
very very successful way of investing. But from where we see,
(15:25):
it's really based on what the client is looking for.
Some clients just don't want income, they don't need it,
so they're very happy to compound. Some people want secondary
income that goes hand in hand with their business. But
I think if certainly, if you're sort of the upper
echelons of ten figures, say sixty seventy eighty thousand per
annum plus, you can build a very successful portfolio with
(15:48):
frequent investing that you can compound on a monthly basis.
That's one short way to build up an entirely nest egg.
And again it depends on you know where your preference is.
A lot of people, I mean, I love Grant Cardona.
I think that you know, the guy's an absolute game
changer and has been immensely successful in property, but he
(16:12):
will not do anything outside of property. He's a real
estate mogul. That's what he does. And if you watch
any of his stuff, the one thing he will say is,
if you're going to buy property, make sure it's multiple occupancy,
because when there's a ground increase, everybody in the apartment
block all pays him. But when you reliant on one
person in say a three bed house or an apartment
(16:35):
and they don't pay for whatever reason, the laws, particularly
here in the UK, are so stacked against the landlord
that they're in the favor of the ten And then
before you know it. You could be a year plus
down the line with no income from that, and then
you're you know, it's failing. It's a failing portfolio from
a property aspect because you're just not getting any income
(16:56):
from it. It's very very difficult. There's you know, you've
got changes in legislation which seems to be happening all
the time here in the UK. So you've got to
be able to, as I said earlier, adapt and navigate
and be open to suggestion to a degree because the
market is changing. The cold cryptocurrency, how many people made
fortunes on it, equally so how many people lost because
(17:20):
they were buying in the high to when it was
ramped up. You know that that as you coined a
moment ago, that's a rabbit hole. So yeah, for me,
we don't tend to look too heavily beyond real estate
commodities usually physicals, and we always have a mid to
long term approach in anything that we do because that's
where we believe that the larger degree of profits.
Speaker 2 (17:44):
What's your thoughts on bitcoins?
Speaker 1 (17:48):
So if you bigcoin? For me, it was not something
that I threw too much attention at, but actually I've
got to say now I think it's changing. We are
moving into a world of digital currency. Here in the UK.
You know the queen's currency, you know, sterling and money
is the queen's currency, and it's it's what makes the
economy go around. But almost when you've got it, nobody
(18:11):
accepts cashier in the UK. I went to a newsagent's
recently just to pick up a chocolate bar and a newspaper.
They wouldn't accept cash. I mean, it's just bizarre because
it's the currency that we've long used. The digital world
is the new world. The AI is the new world.
So I just it comes to this one major point
(18:33):
with me with digital currency, are we creating a totalitarian
style government where they've got the control over the masses.
You know, you can get down conspiracy theories and all that,
you know, all types of things, but it doesn't look
like it's going that way. And quite how we're going
to combat it to retain independency.
Speaker 4 (18:53):
I wouldn't even consider I wouldn't even consider a conspiracy.
Speaker 2 (18:58):
It just this is the actual truth of digital currency.
It's not in the physical hand, it's by a computer.
Speaker 1 (19:08):
What it makes It makes sense, doesn't it again, it
comes down to quickness. You know, you can walk into
a shot. I'll have a touch it on your Apple
page for me. It's beautiful. You just touch, you leave.
You know, it's so simple. You're not carrying around bags
of change or cents or dollars. It's it's just a
very very simple eyem all for it. But where the
(19:30):
line has to be drawn is that if it becomes
a control element, then that just doesn't.
Speaker 4 (19:37):
Sit well with Yeah, if it becomes a control element,
it's gonna be too late anyway. It's just you know,
the the I'm sure they had the same conversations when uh,
you know, print the dollar, the dollar bill itself was printed,
that if this was the currency, or this was the
mechanism that was causing people to agree upon value, that
(20:02):
it could be manipulated. You can counterfeit money, you know,
you could rob somebody of their all of their cash.
Speaker 2 (20:09):
You could steal a lady's purse if you will, you know.
Speaker 4 (20:13):
And it's the same exact philosophy when it comes to
the digital world. Besides, the access isn't uh, the access
rolls over into the thieves of being the more intellectuals,
those are the ones that are still in just like
in business. And I find this funny and I love
to get your perspective on it. I've seen, you know,
(20:34):
dealing with being in the world, being in you know,
walking down certain streets, I've seen theft, and also in
the business world, I've seen theft. But the difference is
queen in the street walking around, if somebody comes up
to you and tries to steal from you, you see
it kind of coming and you kind of can defend
(20:55):
yourself and there's a tension and friction right there. In
the business world, they will smile at you, have you
signed a piece of paper, shake your hand, there is
no confrontation, and they just owe millions from you.
Speaker 2 (21:07):
So you know, absolutely and long.
Speaker 1 (21:11):
The case, and long has been the case. It's a
lot of people going too, you know, the money markets
or a business opportunity or a transaction of some nature
in the world of commerce where they believe they're going
to make money and profit, you know. And again that's
that's what we're all striving for. We all want our
(21:32):
families to be able to to be able to suitably
take care of them and also to retain independence. But
so many people get caught offside in that you know,
a lot of people believe that you can make millions,
and they're rush decisions because they're constantly chasing the dollar,
the pound, whatever it is. They want to get there
(21:52):
much much quicker, and they make mistakes, they leave themselves exposed,
and they don't really understand what they're doing. You've got
to It's like anything. When you read a book, you
need to extrapolate the key parts in order to understand it.
You need to go back and read that book again.
This is not a one time event where you think,
when I make some money in that property deal, I'm
(22:12):
now experienced in the world of investments. That's just not
the case. But I think ultimately, with AI and with
digital currency, it's about the quickness of the transaction. How
quickly can we get it done. How quickly can I
get that paper written? How quickly can I send money
to America. You know, I've got family in America in
(22:35):
New York, and you know if you want to send
a payment, it can take three to five business days.
The beauty of the digital world is it's like this,
isn't it click a button and it's there almost in milliseconds.
And that's why the whole Bitcoin thing worked. So I
think actually that you know, Bitcoin has suffered at the
hands of mass selling and it lows. I think it's
(22:57):
going to come back up the ranks. But also with
the digital currencies that the banks are likely to produce,
which is inevitable in my opinion, and the likes of
Ripple XLP and others, it'd be interesting to see where
they go. I think, you know, they've been training for
so long now and been on lows that I think
(23:17):
we're going to see an insurgence of high prices again.
Speaker 5 (23:22):
We're finding personally in our household that because it's so
easy to just grab your phone and tap and to
it almost seems like we have lost the value of
a dollar. It's like when we first had the credit
card and you could just swipe things as opposed to
paying with cash and seeing how much you're spending. I
(23:43):
find that we're having as a family to go sit
down and really look through our spending because it is
so easy to just quickly spend. Now, do you find
that your clients are having similar issues and what advice
would you give people to be aware of how much
you're spending now that it's so easy to spend.
Speaker 1 (24:05):
I'm a Stouandard act. I had a conversation just yesterday
with he's a cient of mine, but he's become a
very good friend over the last decade or so. He
has an obscene marketing spend, but half the time he
could not pinpoint or narrow down what he's spending the
money on because everything is just done so quickly. So
(24:25):
I've said to him, you know, based on your marketing,
we had this concept just yesterday morning. You know, what
are you getting back for your annual spend? And for
the last couple of years, or certainly since twenty twenty one,
so two and a bit years, he's actually been losing
money because what is the next best opportunity, you know,
(24:46):
for me? Marketing? The best form of marketing in our
world is referral. So as clients that have worked for us,
they've made money, they refer as to a colleague or
a friend. We can then engage in conversation and prior
to us doing business with any one individual or corporate entity,
unless I've met with you, unless we've sat down and
(25:07):
you know, so we've had time to shoot the breeze
and for me to understand and assess you as a
potential client. You've got to assess me my capabilities. What
can we do for you? Where's the mutual understanding? And
it comes back to human touch, emotion, the element of
gratitude between two people and building something as a partnership.
(25:28):
I guess with expenditure, it's very very simple to overspend
in a short period. You mentioned it. Just then when
you've got cash, you've got one hundred dollars, you buy something,
You've now got seventy two dollars left. It's a physical
reminder that you can't breach that or go beyond it.
But when you're digital, you can go into an overdraft,
(25:49):
or you've got a credit card, I'll pay the interest
in a month and before you know you skip it.
Guess what, interest has gone sky high and you're constantly trailing.
And then that's that's not good debt, but that is
a good thing if you know how to use it.
Speaker 4 (26:03):
Yeah, And I think a lot of people make money
off of people's mishaps, ignorant and or just simple mistakes,
you know, And so in the financial world you see
that done all the time. You know, people legitimately are
set for people's incidents. Insurance mistakes. You know all these things, right,
(26:26):
people make profit off of accidents and mistakes.
Speaker 2 (26:30):
So in the financial.
Speaker 4 (26:31):
World, what do you think is a big accident or
a mistake that most people who are spenders don't understand
about money.
Speaker 1 (26:47):
One of the biggest mistakes I believe that a lot
of individuals make is that there's too much reliance and
too much face put into some of the big institutions.
Because you look at it with Layman Brothers. I at
the time Layman Brothers went down, which was two thousand
and eight progs. I can't remember when, but early two
thousand and eight, I was sat at my desk in
(27:08):
one Canada Square watching people with their boxes leaving their offices.
Who would have thought that an institution such as Layman
Brothers would go under? So it comes down to them
having too much say and having too much freedom with
other people's money. So, you know, depositors long believe that
(27:29):
if your money's in a bank, it's safe. That's not
the case. Look at what's happened recently in America. You've
had five or six banks go under over the last
three months. You know, you've got Deutsche Bank in Europe
that were looking we're walking on very uneven ground. You've
had credit Swiss. I mean, wow, so too much for lip.
Speaker 4 (27:52):
How does the go bankrupt? Now their bank they have
all the money, How does a bank an.
Speaker 1 (28:01):
We again, leverage is over leverage. That's ultimately what pushed
That's what pushed Layman Brothers under. They were over leverage.
Speaker 2 (28:10):
What do you mean by that? Explain overs for us.
Speaker 1 (28:14):
So let's assume I'm a banking institution. We're open out
of the bank. Sorry, we're open up the bank, and
we've got a million pounds of depositors money. And now
that's said that, I'm gearing that up. I can go
and buy a stock on a trading account and I
can leverage that maybe three, four, five, six times. So
(28:36):
I've no longer got a million pounds in the market
trading Lloyd shares. I've now got six million. If that
goes up six percent in the day, you know I've
made a fortune inso much that I'm now earning on
the six million. So let's I have earned ten percent
on the day. Okay, I've earned ten percent on six
million in the market and not a million. That's great
(28:58):
if it's going up the moment you go offside and
it goes down and you lose twenty percent on the
share in one day. I'm not losing it on the million,
I'm losing it on the six million, and before you know,
you've got margin calls, and if you can't fill your
margin call, that's it. You trades usually cut in your
big losses. And ultimately that's what happened to Layman Brothers.
So's it's lots of the times the bank's are over
(29:22):
leveraged in any one area, or they're not in liquid assets,
which is one of the things that happened with credits.
Speaker 5 (29:26):
With Do you think it's helpful when the government then
bails them out or do you think that there's long
term effects.
Speaker 1 (29:39):
That's a very very good point. It's good to a
degree in so much that you know, what does it
do for the depositors, the people that have put the
money in. If it protects them, then arguably it's a
good thing. But it almost gives the banks more freedom
to say, wow, you know we got it wrong, we
were over leveraged, but guess what the Fed help is? Now,
what do we do next? And if you can't so
(30:00):
he bailed them out, where's the.
Speaker 2 (30:05):
When do people know, what's the penalty for it?
Speaker 1 (30:10):
Very good question. So if we look at Layman Brothers again,
only because that's the one that was on everybody's lips
in two thousand and eight when the money markets, you know,
we thought ATMs were going to stop giving out cash
globally at one point. For me personally, there isn't enough
that is done to the people at the high up,
(30:32):
the CEOs, the money managers, the directory. Where is the punishment.
I don't know what happened to any of the major
players at Layman Brothers. I don't believe anybody got a
prison sentence. I don't believe that there was any securities fraud.
There should have been. They must have known what they
were doing. You hear it altogether too often. UBS had
a case and excuse me, about four or five years
(30:54):
ago now, there was a British guy that was trading
money supposedly off record, although he sustains that all of
the major money managers that he was working for in
the fund knew, and within a very short window he
lost one point two billion euro of depositors' money. Heavily leveraged.
(31:17):
You know, they leveraged ten times. They're not playing with
a billion, they're playing with ten billion. It's it's you know.
Speaker 2 (31:24):
The set.
Speaker 1 (31:25):
I'm sure from a regulatory standpoint, will do everything that
they can to protect consumers, but I just don't know
that they have the manpower to take a lot of
these these big weeks out because they tend to just
go on and do it and do it again.
Speaker 2 (31:41):
Mm hm.
Speaker 4 (31:43):
So you know, kind of on a you know, kind
of getting to the end. I would love for you
to explain. I would love for you to explain how
and what made you get into the financial industry. You
sound like a guy that has, you know, a good
good hair on their shoulder and where you're hird on
your sleeve, straight forward approach, conservative man.
Speaker 2 (32:07):
And I love to know what made you want to
get into this bill of work.
Speaker 1 (32:12):
I think, you know, I grew up in an environment
where my mum and dad blessed my dad's past, but
you know, there were times in my childhood when we
had a reasonable amount. There were many times when we
had far less. But I always had this sort of
visionary ambition, even as a child ein't nineteen years old.
(32:33):
I used to picture myself, you know, as a young adult,
do it being successful and I think I stayed true
to that and what I was fairly late going into finance.
I was twenty six, twenty seven years old, and I've
really done it because I wanted to build a legacy
and to be able to give my children and my
(32:54):
family and going forward the things that I didn't have,
and that's freedom and independent the ability to make decisions
without having the issues or worry of money. You know,
lots of people say that money is the root of
all evil. I completely disagree with that. I think money
in the wrong hands is the root of all evil.
(33:15):
But money in the right hand, where it can help
and give to the disadvantage, or can be used for
charitable causes, can go towards a whole manner of different things.
That's the most beautiful part of having money. It gives
you the ability to help those less fortunately theirselfs and
that is something that's very very close to my heart.
(33:37):
I've got multiple charities that I give to and it
just enables me to really be a better person. So
finance and understanding money is something that they should teach
at school, certainly secondary school, without a shadow of a doubt,
but they don't because it's all about we teach you
(33:58):
how to be an employee. It's you see that. I
don't know if you've if you've listened to Rich the
poor Dad, but you know that's what they're talking about.
They just don't teach it in school. And I think
ultimately every one of us has got that entrepreneurial instinct
to go out and be a massive success, but we
just don't have the confidence. And it's not it's not
drilled into us from a young age to go out
(34:21):
and explore that because we're taught to how to work
for other people. So financial independence is key, and for me,
it's about giving to the next generation and seeing the
next set of entrepreneurs come up the ranks and change
the world for the best.
Speaker 2 (34:37):
Man.
Speaker 4 (34:37):
Before I let lindsay, uh, you know, I ask a question,
I just wanted to reiterate. I do agree that money
isn't the root of all either. The love for money
is the root of all.
Speaker 2 (34:48):
Yes.
Speaker 1 (34:49):
And of course, when when there's enough enough, you know,
to somebody, to somebody that is carrying around with them
a wide range of insecurity, you know, one hundred billion
is not going to be enough. You know, it's just
not enough. So that you know a small amount of
money in the right hand. Actually is a really, really
(35:10):
wonderful thing.
Speaker 5 (35:11):
I wish I would have learned in school these lessons
and ways to budget. And you're right, the school system
really did not set us up for success. Your parents
had to teach you, or else you had to learn
from podcasts like this or other outside factors. So we
(35:37):
really appreciate you taking the time today, Glynn, to talk
to us, because since kids aren't learning this in school,
hopefully they'll be able to listen to shows like this
and pick up some facts and it will pique their
interests to then go out and research even more and
to develop those skills that they don't get in school.
So I really appreciate your time today. I feel like
(35:59):
we could have talked to you for hours. You're just
a weather of class.
Speaker 1 (36:02):
It's been a pleasure of God. I'd love to do
it again. It's and the beauty of the beauty of
that closing statement by yourself, Lindsay, is is this You
don't have to go to university to learn these things.
It's a fallacy. You don't have to do it. There
is hordes and hordes and hordes of information available on
the internet. And most people now have an iPhone or
(36:22):
access to the internet. You can become an expert in
any given field in a very very short period of time.
And that's the beauty of it, that's the beauty of
what we as humans have come together and created. But also,
in the wrong hands, it can be a dangerous thing,
as we know. But no, I'd love to do it again.
It's it's been a pleasure. And yeah, next time perhaps
(36:43):
we'll go off and discuss many other things, but it's
been a pleasure, right.
Speaker 4 (36:47):
Love it man, We appreciate you. On an episode of
The Bag. Next time, you can't make sure you have
your shoes on. We're going down some rabbit holes.
Speaker 3 (36:55):
Oh good, thank you developments the West of Virginia. Yeah,
I got a bread pray
Well in a world, in a world such as we
sort of live in today, you can't help but fall
out of better make money and I can come into that.
You know, money, Money has long been a crash term
in my opinion, but money is ultimately what makes the
world go around, and there's numerous vehicles globally that we
(00:22):
can sort of tap into.
Speaker 2 (00:24):
On this episode of the Bag.
Speaker 3 (00:30):
I've got another one who's got a better one? Beg,
look in the mirror. The petitor beg, get in my
bag and a bag for my leggings. You ain't got
a better?
Speaker 2 (00:39):
Of course the reference be yeah, yeah, I got a credit.
Speaker 4 (00:43):
So we have our guests for the evening, Glenn King
coming out of UK representing Oak Mount and partners.
Speaker 2 (00:52):
How are you doing today?
Speaker 1 (00:54):
I'm very good, very good, indeed, thank you.
Speaker 2 (00:56):
I'm excellent. I'm excellent.
Speaker 4 (00:58):
So we want to know how do you make money?
Speaker 1 (01:06):
Well in a world, in a world such as we
sort of live in today, you can't help but fall
out of bed and make money, and I can come
into that. You know, money, Money has long been a
crass term in my opinion, but money is ultimately what
makes the world go around, and there's numerous vehicles globally
that we can sort of tap into. But you know,
(01:29):
the world, bear in mind that we've sort of we're
coming out of the mists of a very difficult period
of COVID globally. That was something that none of us
had been through before, so we had to adjust ourselves accordingly,
and it was a very very difficult roadmap. But ultimately
out of that, I actually think that it's fast tracked
business five six, seven years plus because we've now moved
(01:53):
this whole digital world that we're now in has brought
businesses sort of right up to the twenty first century
and much beyond. But also there's casualties, and the casualties
are going to be those companies, those businesses or those enterprises,
if you will, globally that if they're not able to
(02:15):
cut their cloth accordingly and adjust and be adaptable to change,
they're redundant. And when you're redundant, of course, it's very
difficult to make money in a market that is ultimately
very very aggressive.
Speaker 4 (02:31):
Gotcha and tell us a little bit about what you
do at Oak Melt.
Speaker 1 (02:37):
So, Oak Mount and Partners is a business that I
built some fourteen years ago now, and my sort of
overall ambition and goal was to build a business that
was to last long after my passing. I wanted it
was a legacy play for me, and my sort of
(02:57):
goal is to be able to bring about opportunity for participants,
for investors, be it corporate entities, private clients, and so forth,
to navigate the investing platform and world as it stands,
but to simplify it because ultimately, in the world of investing,
we're looking at a number of major components, but really
(03:20):
it boils down to this, how much does it cost,
how much will it make? What's the maturity term? Now
for me personally? You know, decisions made in haste are
really good decisions. So we have to have a more
mid term to long term view on our investment strategy.
And there is a wealth of opportunity out there. We're
(03:40):
a commodity driven firm as such, so we raise expansion
capital for big mining operations that have got a green
envelope to them in so much that they produce a
plethora of minerals and metals that go into the EV market,
electric vehicle market, coupled with technology iPhone, smartphones, tablets, and
(04:02):
also going to construction. So we one of our materials
we produce is something called metakalene and that goes into
green cement, so it pushes out no CO two. So
everything has a green window to it, and it's about sustainability,
and that's where we see the modern world going. It's
you know, there's this there's been a heavy reliance upon
(04:25):
you know, petrol vehicles as such, but of course with Tesla,
the whole world is now focused on electric and there's
twos and fours in that market. But ultimately we're moving
into something that's much more green than sustainable in my view.
Speaker 5 (04:40):
So, speaking of future trends, have you noticed it all?
It seems like AI really is the future as well.
You've got chat GBT taking away people's jobs, making people
have the ability to have more than one job because
they can use chat GBT. Do you feel like, well,
how are people using AI to pick stock market picks?
(05:05):
And do you, from your position, feel like clients are
more interested in AI and what are the future trends
for that?
Speaker 2 (05:15):
Yeah?
Speaker 1 (05:16):
AI is. I mean it's just literally within the last
sort of six to twelve months, even this year, the
change that I've seen is monumental. Chat GPT has sort
of just come out of nowhere and it's just blown
the whole system up. But of course there's lots of
new AI systems that are kicking into touch now as well.
(05:38):
I don't want to say it's a fear as such,
but my concern with AI is this AI effectively stems
from human input, but it's now exceeding the way in
which we think because it can think in a much,
much quicker fashion. So what is going to happen to
the environment when you've got smartphones? I was watching a
documentary is a few months back or maybe just for
(06:00):
Christmas now, and they we're talking about the reliance of
children on smartphones. You know, children at eight nineteen years
old have got them. But of course when you go
on to messaging services, what does it do. It has
predicted text. So it's actually taking away out to a degree,
our ability to think because it does everything for you.
So actually the learning that we once had through secondary
(06:23):
school through to junior is disappearing, and it's almost like
we're not keeping hold of, you know, just the basic
fundamentals good grammar, good English spelling, and so on and
so forth, because it's all done for us. So that,
for me is a dangerous thing. Human input I still
think is very very important. It's one thing speaking to
(06:44):
a machine. But this whole world of AI for me personally,
I think it's going to transform the landscape across multiple sectors.
The money markets and investment markets is just one component
of that. Can I see AI taking over the likes
of the London Stock Exchange and the money markets here
in the UK or even Wall Street? Potentially yes, But
(07:08):
then one of the likes of Gold and Sex and
JP Morgan some of the larger investment back banks. What
are they going to do and what's it going to
do to their workforce? It guess time will tell, right.
Speaker 4 (07:21):
I heard somebody say that it won't be a I
that replaces you, it will be a person that's using
AI that replaces you. So in other words, I think
what they were trying to reference is that it's a
tool you know, and use it how you will.
Speaker 2 (07:43):
You know.
Speaker 4 (07:43):
It's no different from a tool than a construction site. Right,
It's not.
Speaker 2 (07:47):
It's not.
Speaker 4 (07:48):
It's not per se that the that the chainsaw is
replacing a person or taking over.
Speaker 2 (07:54):
It's a person using a chainsaw that is taking over.
Speaker 1 (07:59):
And without action, it can absolutely enhance a business. And
you know, the one thing that from the moment we
get up in the mornings until the moment we go
to see it's how quick can we get it done?
You know, how quick can I get up and make
that cup of coffee, which means I'm on the road
quicker to my eyeline of business or work for me.
Chap GBT has been a game changer. And from the
(08:20):
way I would explain it is this. Ordinarily I would
come in, I would be put in corporate brochures, perspectives together,
I AMS and a whole manner of different things that
would go out to our client bank. That is very,
very time consuming. You're dealing with elements of compliance, You're
dealing with the wording itself, the content, the layout. I
can go into chat GPT now and say, please draft
(08:42):
an email regarding an inbound inquiry and why our business
would best suit the investors' ambitions of financial freedom and
wealth creation, and it will come up with paragraphs and
all you've got to do is just choose through it
and extrapolate. It's just so simil. But I like to
think my face, we'd like to give it that human touch.
(09:04):
Otherwise it almost sounds to machine, like there's no element
of emotion to it, and there needs to be. And
that's where I find it doesn't really give that at
the moment, but that could very well change it. Of course.
Speaker 5 (09:19):
I love that you touched on the need for human communication.
It seems like as technology advances, we have more ways
to communicate with others than ever, but we're losing that
personal touch of communication. I really felt it personally during
the pandemic, where here I was doing zoom calls and
(09:39):
face times and texting more than ever, but it felt
like I had this need for personal communication and physical
touch and face to face communication. How do you feel
like our society is going to miss out or struggle
(09:59):
as we start to drift even more away from that
personal touch, like you were saying, like it's there is
that limitation currently with AI.
Speaker 1 (10:10):
I mean, I'm utterly astounded. You've only got to go
into you know, for me frequently, I'm very frequently in
London on business here West London, Mayfair area, I mean clients,
I'm on the road a lot. But the one thing
I can say to you is this going into London,
London is a wonderful city. It's played with you know,
some difficulties, like lots of major cities are, but you've
(10:33):
only got to walk through central London and most people
nowadays are doing this and literally walking down the street
with that in front of them, paying no attention to
anyone or anything. A friend of mine. This sounds a
little bit macab but I wanted to lead into it
because it touches on this very point. A friend of
mine fairly recently was mugged in London, which sounds horrific,
(10:55):
and it was a bit of an ordeal for him.
Nobody went to his aid, but everybody around him was
filming it.
Speaker 2 (11:03):
Wow, there isn't.
Speaker 1 (11:05):
That an appalling thing that you're in your moment of
I mean, that must have been a really harrowing experience
to go through and to know that there's nobody at
your aid, but yet they've got the time to just
sit there and record because we'll put it on social
media and we'll get likes. The human touch is gone
because it's all about what attention can I get from
(11:26):
the next best story. I just don't get it. You know,
for my forty four years on the planet, we've lost
touch of what ultimately brings people together, and that is
the art of communication. And if you master that, you know,
as the adage goes, words move mountains, and we need
to come back to the basics. You know, long long
(11:49):
has it been that things can very easily get misconstrued, misunderstood,
but based on sensible conversation between sensible people, you can
do anything. But just lost sight, they've lost touch, And
quite where it's going is beyond me. But I would
like to think that we did come back to basics
and come back together and push for a greater cause
(12:10):
of wellbeing globally. That's that's what it's all.
Speaker 4 (12:13):
About, you know, that's get kind of getting into a
philosophical look right on life for sure. And I could,
I could chase facing down any rabbit hole.
Speaker 1 (12:27):
But that's a conversation for another day.
Speaker 4 (12:31):
Yeah, man, And you know, and I do want to
get into a few of those things. But one question
I do have obviously been in the NFL plan for
eight years.
Speaker 2 (12:40):
We have Lamar Jackson, who.
Speaker 4 (12:43):
Has now signed the largest contract in NFL history by himself.
Speaker 2 (12:49):
No agent shout out to him.
Speaker 4 (12:51):
Obviously, he was oxtracizeder saying that he couldn't sign a
deal without an agent. You know, it's an entire matrix
system with having an age and whether you should or
should not, that's a discrepancy we can get into. But however,
he signed one hundred and thirty five million dollars signing
bonus one hundred and eighty five million dollars guaranteed. With
(13:14):
that being said, can what amount let's say, what amount
of money would you say an individual needs to have
to be able to invest properly, maturely, conservatively, without major
risk at all in order to not be able to
(13:36):
work a day in their life again. And if they
want to live in a budget, let's say one hundred
and fifty to two hundred K, what is the magic
number that they need in their bank account in order
to properly invest and not have to work corporate again.
Speaker 1 (13:55):
It's a very good question, and you know, had you
have asked me that a few years back, my answer
would be very different because we dealt with a different
type of client. We are sort of a little bit
longer in the tooth now, So for us here in
the UK, we generally only deal with transactions from one
hundred thousand pounds plus and the reason being is that
we are know we tend to deal with corporate entities,
(14:19):
high network individuals that have got successful businesses or have
sold out whatever, that would be our normal that would
be our normal go to client. You don't actually have
to have, you know, two three four hundred thousand pounds
income per annum to be a very successful investor and
build a very very profitable portfolio. But it's consistency and
(14:42):
it's understanding what you're doing for me. Why diversification is
a bit of a no note because I think when
you're spread too thinly, you expose yourself actually a lot more.
We have diversification diversification to a degree, but I think
if you're consistent in your approach and you have a
mid to long term view, the one thing that makes
(15:03):
people good returns and enables your portfolio to blossom is
compound interest. So when you're compounding and not necessarily reliant
on the income that you make in your portfolio and
you let it grow exponentially over a period, that's a
very very successful way of investing. But from where we see,
(15:25):
it's really based on what the client is looking for.
Some clients just don't want income, they don't need it,
so they're very happy to compound. Some people want secondary
income that goes hand in hand with their business. But
I think if certainly, if you're sort of the upper
echelons of ten figures, say sixty seventy eighty thousand per
annum plus, you can build a very successful portfolio with
(15:48):
frequent investing that you can compound on a monthly basis.
That's one short way to build up an entirely nest egg.
And again it depends on you know where your preference is.
A lot of people, I mean, I love Grant Cardona.
I think that you know, the guy's an absolute game
changer and has been immensely successful in property, but he
(16:12):
will not do anything outside of property. He's a real
estate mogul. That's what he does. And if you watch
any of his stuff, the one thing he will say is,
if you're going to buy property, make sure it's multiple occupancy,
because when there's a ground increase, everybody in the apartment
block all pays him. But when you reliant on one
person in say a three bed house or an apartment
(16:35):
and they don't pay for whatever reason, the laws, particularly
here in the UK, are so stacked against the landlord
that they're in the favor of the ten And then
before you know it. You could be a year plus
down the line with no income from that, and then
you're you know, it's failing. It's a failing portfolio from
a property aspect because you're just not getting any income
(16:56):
from it. It's very very difficult. There's you know, you've
got changes in legislation which seems to be happening all
the time here in the UK. So you've got to
be able to, as I said earlier, adapt and navigate
and be open to suggestion to a degree because the
market is changing. The cold cryptocurrency, how many people made
fortunes on it, equally so how many people lost because
(17:20):
they were buying in the high to when it was
ramped up. You know that that as you coined a
moment ago, that's a rabbit hole. So yeah, for me,
we don't tend to look too heavily beyond real estate
commodities usually physicals, and we always have a mid to
long term approach in anything that we do because that's
where we believe that the larger degree of profits.
Speaker 2 (17:44):
What's your thoughts on bitcoins?
Speaker 1 (17:48):
So if you bigcoin? For me, it was not something
that I threw too much attention at, but actually I've
got to say now I think it's changing. We are
moving into a world of digital currency. Here in the UK.
You know the queen's currency, you know, sterling and money
is the queen's currency, and it's it's what makes the
economy go around. But almost when you've got it, nobody
(18:11):
accepts cashier in the UK. I went to a newsagent's
recently just to pick up a chocolate bar and a newspaper.
They wouldn't accept cash. I mean, it's just bizarre because
it's the currency that we've long used. The digital world
is the new world. The AI is the new world.
So I just it comes to this one major point
(18:33):
with me with digital currency, are we creating a totalitarian
style government where they've got the control over the masses.
You know, you can get down conspiracy theories and all that,
you know, all types of things, but it doesn't look
like it's going that way. And quite how we're going
to combat it to retain independency.
Speaker 4 (18:53):
I wouldn't even consider I wouldn't even consider a conspiracy.
Speaker 2 (18:58):
It just this is the actual truth of digital currency.
It's not in the physical hand, it's by a computer.
Speaker 1 (19:08):
What it makes It makes sense, doesn't it again, it
comes down to quickness. You know, you can walk into
a shot. I'll have a touch it on your Apple
page for me. It's beautiful. You just touch, you leave.
You know, it's so simple. You're not carrying around bags
of change or cents or dollars. It's it's just a
very very simple eyem all for it. But where the
(19:30):
line has to be drawn is that if it becomes
a control element, then that just doesn't.
Speaker 4 (19:37):
Sit well with Yeah, if it becomes a control element,
it's gonna be too late anyway. It's just you know,
the the I'm sure they had the same conversations when uh,
you know, print the dollar, the dollar bill itself was printed,
that if this was the currency, or this was the
mechanism that was causing people to agree upon value, that
(20:02):
it could be manipulated. You can counterfeit money, you know,
you could rob somebody of their all of their cash.
Speaker 2 (20:09):
You could steal a lady's purse if you will, you know.
Speaker 4 (20:13):
And it's the same exact philosophy when it comes to
the digital world. Besides, the access isn't uh, the access
rolls over into the thieves of being the more intellectuals,
those are the ones that are still in just like
in business. And I find this funny and I love
to get your perspective on it. I've seen, you know,
(20:34):
dealing with being in the world, being in you know,
walking down certain streets, I've seen theft, and also in
the business world, I've seen theft. But the difference is
queen in the street walking around, if somebody comes up
to you and tries to steal from you, you see
it kind of coming and you kind of can defend
(20:55):
yourself and there's a tension and friction right there. In
the business world, they will smile at you, have you
signed a piece of paper, shake your hand, there is
no confrontation, and they just owe millions from you.
Speaker 2 (21:07):
So you know, absolutely and long.
Speaker 1 (21:11):
The case, and long has been the case. It's a
lot of people going too, you know, the money markets
or a business opportunity or a transaction of some nature
in the world of commerce where they believe they're going
to make money and profit, you know. And again that's
that's what we're all striving for. We all want our
(21:32):
families to be able to to be able to suitably
take care of them and also to retain independence. But
so many people get caught offside in that you know,
a lot of people believe that you can make millions,
and they're rush decisions because they're constantly chasing the dollar,
the pound, whatever it is. They want to get there
(21:52):
much much quicker, and they make mistakes, they leave themselves exposed,
and they don't really understand what they're doing. You've got
to It's like anything. When you read a book, you
need to extrapolate the key parts in order to understand it.
You need to go back and read that book again.
This is not a one time event where you think,
when I make some money in that property deal, I'm
(22:12):
now experienced in the world of investments. That's just not
the case. But I think ultimately, with AI and with
digital currency, it's about the quickness of the transaction. How
quickly can we get it done. How quickly can I
get that paper written? How quickly can I send money
to America. You know, I've got family in America in
(22:35):
New York, and you know if you want to send
a payment, it can take three to five business days.
The beauty of the digital world is it's like this,
isn't it click a button and it's there almost in milliseconds.
And that's why the whole Bitcoin thing worked. So I
think actually that you know, Bitcoin has suffered at the
hands of mass selling and it lows. I think it's
(22:57):
going to come back up the ranks. But also with
the digital currencies that the banks are likely to produce,
which is inevitable in my opinion, and the likes of
Ripple XLP and others, it'd be interesting to see where
they go. I think, you know, they've been training for
so long now and been on lows that I think
(23:17):
we're going to see an insurgence of high prices again.
Speaker 5 (23:22):
We're finding personally in our household that because it's so
easy to just grab your phone and tap and to
it almost seems like we have lost the value of
a dollar. It's like when we first had the credit
card and you could just swipe things as opposed to
paying with cash and seeing how much you're spending. I
(23:43):
find that we're having as a family to go sit
down and really look through our spending because it is
so easy to just quickly spend. Now, do you find
that your clients are having similar issues and what advice
would you give people to be aware of how much
you're spending now that it's so easy to spend.
Speaker 1 (24:05):
I'm a Stouandard act. I had a conversation just yesterday
with he's a cient of mine, but he's become a
very good friend over the last decade or so. He
has an obscene marketing spend, but half the time he
could not pinpoint or narrow down what he's spending the
money on because everything is just done so quickly. So
(24:25):
I've said to him, you know, based on your marketing,
we had this concept just yesterday morning. You know, what
are you getting back for your annual spend? And for
the last couple of years, or certainly since twenty twenty one,
so two and a bit years, he's actually been losing
money because what is the next best opportunity, you know,
(24:46):
for me? Marketing? The best form of marketing in our
world is referral. So as clients that have worked for us,
they've made money, they refer as to a colleague or
a friend. We can then engage in conversation and prior
to us doing business with any one individual or corporate entity,
unless I've met with you, unless we've sat down and
(25:07):
you know, so we've had time to shoot the breeze
and for me to understand and assess you as a
potential client. You've got to assess me my capabilities. What
can we do for you? Where's the mutual understanding? And
it comes back to human touch, emotion, the element of
gratitude between two people and building something as a partnership.
(25:28):
I guess with expenditure, it's very very simple to overspend
in a short period. You mentioned it. Just then when
you've got cash, you've got one hundred dollars, you buy something,
You've now got seventy two dollars left. It's a physical
reminder that you can't breach that or go beyond it.
But when you're digital, you can go into an overdraft,
(25:49):
or you've got a credit card, I'll pay the interest
in a month and before you know you skip it.
Guess what, interest has gone sky high and you're constantly trailing.
And then that's that's not good debt, but that is
a good thing if you know how to use it.
Speaker 4 (26:03):
Yeah, And I think a lot of people make money
off of people's mishaps, ignorant and or just simple mistakes,
you know, And so in the financial world you see
that done all the time. You know, people legitimately are
set for people's incidents. Insurance mistakes. You know all these things, right,
(26:26):
people make profit off of accidents and mistakes.
Speaker 2 (26:30):
So in the financial.
Speaker 4 (26:31):
World, what do you think is a big accident or
a mistake that most people who are spenders don't understand
about money.
Speaker 1 (26:47):
One of the biggest mistakes I believe that a lot
of individuals make is that there's too much reliance and
too much face put into some of the big institutions.
Because you look at it with Layman Brothers. I at
the time Layman Brothers went down, which was two thousand
and eight progs. I can't remember when, but early two
thousand and eight, I was sat at my desk in
(27:08):
one Canada Square watching people with their boxes leaving their offices.
Who would have thought that an institution such as Layman
Brothers would go under? So it comes down to them
having too much say and having too much freedom with
other people's money. So, you know, depositors long believe that
(27:29):
if your money's in a bank, it's safe. That's not
the case. Look at what's happened recently in America. You've
had five or six banks go under over the last
three months. You know, you've got Deutsche Bank in Europe
that were looking we're walking on very uneven ground. You've
had credit Swiss. I mean, wow, so too much for lip.
Speaker 4 (27:52):
How does the go bankrupt? Now their bank they have
all the money, How does a bank an.
Speaker 1 (28:01):
We again, leverage is over leverage. That's ultimately what pushed
That's what pushed Layman Brothers under. They were over leverage.
Speaker 2 (28:10):
What do you mean by that? Explain overs for us.
Speaker 1 (28:14):
So let's assume I'm a banking institution. We're open out
of the bank. Sorry, we're open up the bank, and
we've got a million pounds of depositors money. And now
that's said that, I'm gearing that up. I can go
and buy a stock on a trading account and I
can leverage that maybe three, four, five, six times. So
(28:36):
I've no longer got a million pounds in the market
trading Lloyd shares. I've now got six million. If that
goes up six percent in the day, you know I've
made a fortune inso much that I'm now earning on
the six million. So let's I have earned ten percent
on the day. Okay, I've earned ten percent on six
million in the market and not a million. That's great
(28:58):
if it's going up the moment you go offside and
it goes down and you lose twenty percent on the
share in one day. I'm not losing it on the million,
I'm losing it on the six million, and before you know,
you've got margin calls, and if you can't fill your
margin call, that's it. You trades usually cut in your
big losses. And ultimately that's what happened to Layman Brothers.
So's it's lots of the times the bank's are over
(29:22):
leveraged in any one area, or they're not in liquid assets,
which is one of the things that happened with credits.
Speaker 5 (29:26):
With Do you think it's helpful when the government then
bails them out or do you think that there's long
term effects.
Speaker 1 (29:39):
That's a very very good point. It's good to a
degree in so much that you know, what does it
do for the depositors, the people that have put the
money in. If it protects them, then arguably it's a
good thing. But it almost gives the banks more freedom
to say, wow, you know we got it wrong, we
were over leveraged, but guess what the Fed help is? Now,
what do we do next? And if you can't so
(30:00):
he bailed them out, where's the.
Speaker 2 (30:05):
When do people know, what's the penalty for it?
Speaker 1 (30:10):
Very good question. So if we look at Layman Brothers again,
only because that's the one that was on everybody's lips
in two thousand and eight when the money markets, you know,
we thought ATMs were going to stop giving out cash
globally at one point. For me personally, there isn't enough
that is done to the people at the high up,
(30:32):
the CEOs, the money managers, the directory. Where is the punishment.
I don't know what happened to any of the major
players at Layman Brothers. I don't believe anybody got a
prison sentence. I don't believe that there was any securities fraud.
There should have been. They must have known what they
were doing. You hear it altogether too often. UBS had
a case and excuse me, about four or five years
(30:54):
ago now, there was a British guy that was trading
money supposedly off record, although he sustains that all of
the major money managers that he was working for in
the fund knew, and within a very short window he
lost one point two billion euro of depositors' money. Heavily leveraged.
(31:17):
You know, they leveraged ten times. They're not playing with
a billion, they're playing with ten billion. It's it's you know.
Speaker 2 (31:24):
The set.
Speaker 1 (31:25):
I'm sure from a regulatory standpoint, will do everything that
they can to protect consumers, but I just don't know
that they have the manpower to take a lot of
these these big weeks out because they tend to just
go on and do it and do it again.
Speaker 2 (31:41):
Mm hm.
Speaker 4 (31:43):
So you know, kind of on a you know, kind
of getting to the end. I would love for you
to explain. I would love for you to explain how
and what made you get into the financial industry. You
sound like a guy that has, you know, a good
good hair on their shoulder and where you're hird on
your sleeve, straight forward approach, conservative man.
Speaker 2 (32:07):
And I love to know what made you want to
get into this bill of work.
Speaker 1 (32:12):
I think, you know, I grew up in an environment
where my mum and dad blessed my dad's past, but
you know, there were times in my childhood when we
had a reasonable amount. There were many times when we
had far less. But I always had this sort of
visionary ambition, even as a child ein't nineteen years old.
(32:33):
I used to picture myself, you know, as a young adult,
do it being successful and I think I stayed true
to that and what I was fairly late going into finance.
I was twenty six, twenty seven years old, and I've
really done it because I wanted to build a legacy
and to be able to give my children and my
(32:54):
family and going forward the things that I didn't have,
and that's freedom and independent the ability to make decisions
without having the issues or worry of money. You know,
lots of people say that money is the root of
all evil. I completely disagree with that. I think money
in the wrong hands is the root of all evil.
(33:15):
But money in the right hand, where it can help
and give to the disadvantage, or can be used for
charitable causes, can go towards a whole manner of different things.
That's the most beautiful part of having money. It gives
you the ability to help those less fortunately theirselfs and
that is something that's very very close to my heart.
(33:37):
I've got multiple charities that I give to and it
just enables me to really be a better person. So
finance and understanding money is something that they should teach
at school, certainly secondary school, without a shadow of a doubt,
but they don't because it's all about we teach you
(33:58):
how to be an employee. It's you see that. I
don't know if you've if you've listened to Rich the
poor Dad, but you know that's what they're talking about.
They just don't teach it in school. And I think
ultimately every one of us has got that entrepreneurial instinct
to go out and be a massive success, but we
just don't have the confidence. And it's not it's not
drilled into us from a young age to go out
(34:21):
and explore that because we're taught to how to work
for other people. So financial independence is key, and for me,
it's about giving to the next generation and seeing the
next set of entrepreneurs come up the ranks and change
the world for the best.
Speaker 2 (34:37):
Man.
Speaker 4 (34:37):
Before I let lindsay, uh, you know, I ask a question,
I just wanted to reiterate. I do agree that money
isn't the root of all either. The love for money
is the root of all.
Speaker 2 (34:48):
Yes.
Speaker 1 (34:49):
And of course, when when there's enough enough, you know,
to somebody, to somebody that is carrying around with them
a wide range of insecurity, you know, one hundred billion
is not going to be enough. You know, it's just
not enough. So that you know a small amount of
money in the right hand. Actually is a really, really
(35:10):
wonderful thing.
Speaker 5 (35:11):
I wish I would have learned in school these lessons
and ways to budget. And you're right, the school system
really did not set us up for success. Your parents
had to teach you, or else you had to learn
from podcasts like this or other outside factors. So we
(35:37):
really appreciate you taking the time today, Glynn, to talk
to us, because since kids aren't learning this in school,
hopefully they'll be able to listen to shows like this
and pick up some facts and it will pique their
interests to then go out and research even more and
to develop those skills that they don't get in school.
So I really appreciate your time today. I feel like
(35:59):
we could have talked to you for hours. You're just
a weather of class.
Speaker 1 (36:02):
It's been a pleasure of God. I'd love to do
it again. It's and the beauty of the beauty of
that closing statement by yourself, Lindsay, is is this You
don't have to go to university to learn these things.
It's a fallacy. You don't have to do it. There
is hordes and hordes and hordes of information available on
the internet. And most people now have an iPhone or
(36:22):
access to the internet. You can become an expert in
any given field in a very very short period of time.
And that's the beauty of it, that's the beauty of
what we as humans have come together and created. But also,
in the wrong hands, it can be a dangerous thing,
as we know. But no, I'd love to do it again.
It's it's been a pleasure. And yeah, next time perhaps
(36:43):
we'll go off and discuss many other things, but it's
been a pleasure, right.
Speaker 4 (36:47):
Love it man, We appreciate you. On an episode of
The Bag. Next time, you can't make sure you have
your shoes on. We're going down some rabbit holes.
Speaker 3 (36:55):
Oh good, thank you developments the West of Virginia. Yeah,
I got a bread pray
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