MoneyShow Keynote - Alternative Investments 11/12/24
Both private equity and real estate are my preferred investment categories and rich veins of ore for the right investors, but they are no place for tourists.
Note: I recently gave the keynote talk for the MoneyShow Alternative Investments Conference. You can see a video of my presentation by clicking here or by clicking on the image below .
And you can download a PDF file of the slides I used on the keynote by clicking on the link below.
Summary
I am a private equity guy and a real estate guy. I have been investing in private equity (PE) and real estate (RE), both as a General Partner and, in select cases, a Limited Partner, for more than 40 years. I love the work.
Alternative Assets are not a thing. It is a term someone made up to describe the “other” things you can own besides stocks, bonds, and money market funds.
A better description would be either “private markets” or "illiquid investments”. My friends in the intelligence community would describe passive stock and bond investing as “surveillance.” They would call investing in private, illiquid assets “wet work.” It is much more rewarding.
When you invest in private markets, you are on your own. You leave behind the luxury of publicly available information and the stamp of approval from the SEC or a trustworthy auditor.
When you sign up to invest in illiquid assets, you can’t change your mind and get off the boat halfway through the cruise. You are in for the whole ride. So, you’d better trust the captain (the General Partner).
Even with these challenges, PE and RE investing offer opportunities to earn attractive returns while enjoying the privilege of being part of building great businesses.
In this talk, I will review the strategies that the great PE and RE investors have used to find, acquire, build, and grow world-class companies. And I will talk about how you can use these ideas yourself to do the same work with the small and mid-sized companies in your own local market.
Excellent summary. This should be read by more emerging managers and their LPs. There is still a lot of misunderstanding around private assets, and it has reflected negatively on this asset class as a whole.