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📈 "Alternative Assets"

The Pomp Podcast

Photo by Gerald Schömbs / Unsplash

Host: Anthony Pompliano
Guest: Kevin O’Leary, Investor
Category: Biz & Tech | 📈 Investing

Podcast’s Essential Bites:

[8:45] “What the virus has done has accelerated 36 months of online sales. In other words, if you were budgeting for three years from now to be 50% online, direct to consumer, it was gonna take you 36 months, three years, and that was your capital expenditure plan as it was for many of my companies. We’ve achieved that in five months.”

[9:56] “I’m cutting my business travel and entertainment by 50% in my portfolio over the next 24 months. We are saving a fortune.”

[17:46] “I like to have an investment philosophy […] [that’s] not about just investing for growth, it’s investing to protect your money in case there is a catastrophic change in the market. So, preservation of capital is my number one mandate.”

[19:38] “Invest in things you understand how they are growing.”

[35:34] “Bitcoin was originally sold to me as a counter balance to the equity market. In other words, it would move in a different direction. So, if you had a big correction in the stock market, theoretically Bitcoin would go the other way and would protect your assets. That’s not true. It has a very heavy correlation to the stock market. It too, achieves new highs, when the market achieves new highs. And when the markets correct, it too, corrects. So, it’s very volatile […].”

[39:20] “The regulators […] don’t agree yet that Bitcoin is the standard. […] I totally agree with your premise that the globe needs a digital currency. […] If you told me the Swiss and the Euro and the American, Canadian, Australian government agreed to whatever that is, I would put up to 20% of my portfolio in it, because then I can move across those geographies easily, without paying all the fees associated with converting one currency to another.”

[42:17] “Every time I talk off the record to regulators […], they are a little squeamish on Bitcoin. They are not quite there yet. When can you get this thing regulated, so that I can put millions of dollars into it and know that I’m not off site and that in any way I’m not breaching anything. […] If that was the case, [….] not only would [Bitcoin] go up, but you would have a lot of people like me investing in it.”

[44:26] “What I would like to have in a cryptocurrency would be, give me the top seven cryptocurrencies, put them into an ETF wrapper, and let me invest in it with liquidity. […] I don’t believe that you can only have one successful cryptocurrency. There must be the idea that there is other and alternative ways, Ethereum and others, that would also benefit from the overall move to a cryptocurrency payment system.”

[46:25] “I never have more than 5% in any one stock or asset. […] I never have more than 20% in any one sector. […] I have many private assets, […] right now I’m sitting at about 30% of my net worth in private companies […] and I value them based on their ability to generate cash flow. […] And then for a long time […] I had a massive portfolio of real estate. And I recently have taken down that portfolio from a 30% weighting […] to 8% […].”

Rating: 🍎🍎🍎🍎

🎙️ Full Episode: Apple | Spotify
🕰️ 52 min | 🗓️ 12/01/2020
✅ Time saved: 50 min