Ryan Miller
My name is Ryan Miller and for the past 15 years I've helped hundreds of people to raise millions of dollars for their funds, and for their startups. If you're serious about raising money, launching your business or taking your life to the next level, this show will give you the answers, so that you too can enjoy your pursuit of Making Billions. Let's get into it.
Ryan Miller
Have you ever wondered how hedge funds manage risks, make money and thrive in nearly any environment? Well, my next guests are hedge fund managers and they are about to tell you their opinions on just that. All this and more coming right now. Here we go.
Ryan Miller
Hey, welcome to another episode of Making Billions, I'm your host, Ryan Miller and today I have two of my partner's, hedge fund masters and my very best friends, the Kevin Kwong and Dr. David Yeow. Both Kevin and David are general partners with me at our fund, Pentium Capital Partners. They run our Pentium Atlas hedge fund and I have agreed to bring them on to the show and they're going to share with us some of their opinions on the market, and how to get started and some of the potential pitfalls you want to avoid along the way. So what this means is that David and Kevin both understand how markets work and they are about to share their unique perspectives with you and I about hedge funds, markets, and where they believe the smart money is going. All without soliciting investors from the show, so David, Kevin, welcome to the show, my brothers.
David Yeow
Ryan, thanks for having us. I know you are a busy guy, and I appreciate you inviting us again. Can't believe it has been a year, I remember the last time we were on the show it was when you first started, and I can't believe how consistent you are with the show. It's amazing and we've been a big fan and yeah, happy to jump back on and now part of the team together. Yeah, and just have a good chat.
Ryan Miller
Awesome, man. Well, it's so good to have you and yeah, actually, it's been probably close to two years by now if you can believe it, right? So you were some of my first fans and first guests on the show and I'm so honored to have you back. Look at that. How's the time changed? We're all partners now, so yes, full disclosure, I do have an interest in what these gentlemen do. We are not soliciting investments in any way. We're just having a discussion, sharing our opinions on what's going on in the markets and these are some of the best guys I know to make that happen. You guys have been running a fund, you're on your third fund now. We have a lot of emerging fund managers that listen to the show, among many other people, family offices in over 100 countries around the world. Just addressing the beginners out there, why even start a hedge fund? What's the point? Why start a hedge fund, why do you guys trade, bring me up to speed of why?
David Yeow
Yeah, I'll take this one, I think, you know, a hedge fund by itself is a great sense. I think trading itself, it's you know, when done correctly, you know, you can structure like an insurance product and be relatively consistent return. And you can make it with, you know, relatively like defined and low downside risk and I think there's a lot of misconception in the trading world. I think it's just trading world is such a big arena, right? You got people trading equity, 4x, bond, you know options, sort of all kinds of stock, all kinds of stuff. And I think it's sort of like walking into an arena where some people were playing basketball, volleyball, I think too many people are trying to jump from one sport to another a lot of times, and that's why, you know, they don't find any success. Whereas, you know, it's kind of like guys who are doing real estate, you know, multifamily guys see it as a strictly multifamily. I think there's less of that structure in trading because there's so many options, you can really trade everything except maybe humans and organs. Yeah, but overall, it's a great business, if you really think about it trading, you don't have a lot of operating expenses, you don't have utility or a payrolls or you know, insurance or you know, overhead. So trading is solid, it's a pretty high profit margin business or income stream compared to a traditional business. And you know, in the words of Aaron Bare, which I have a big fan of in the Making Billions podcast, he says, you want to do more business and you want something that's predictable, scalable, repeatable and sustainable? You know, that's what really stuck with me after that, listening to the episode and this is why I follow the show, you get all these, you know, great nuggets. And I think trading as, whether you do it as a supplemental income or as a business? It's really done right? Again, properly with the right education, I think you'll find great success.
Ryan Miller
Yes, scalable, repeatable, I loved all that and yeah, Aaron has become a great friend to us the fund to myself. He's a wonderful human being and I hope he's listening to the show. So, so that being said, let's continue on that same vein, David, thank you for that. Let's talk to the beginners out there. You've been a beginner before, Kevin, you've been a beginner before, I've been a beginner before, we just lock in on anyone who's been in the industry to give some advice. So addressing the beginners out there, I'm curious to things from your advice and your experience. In your opinion, how can beginners win? And then maybe we'll follow up with how do they not lose? How do they avoid blowing this up? So what would you say to the beginners who are looking to add some points on the board, without screwing it up and getting wiped out? What would you say?
David Yeow
I'd say for the beginners to invest in education? Yeah, I'm a student of Scott Bauer, you know, I learned how to do favorable risk reward trades with debit spreads and find losses when I first started. And then I met Kevin and David Sun and you know, they taught me about systematic trading, which is mind blowing to me at the time, because I was always chasing my volatility, earnings and technicals and, you know, with the systematic trading nowadays, it's better quality of life. And you know, you have a lot more predictability, you have a little more control, and you don't have to watch the screen all the time. And it's an evolution and I say for the younger newcomers, invest in education.
Ryan Miller
Okay, Kevin, where would you say, so invest in education, that's how you get some early points on the board. So if you're a beginner, conduct your research, understand, learn as best as you can. Kevin, what have you found to be some great sources from you in the early days of how you learned and really came up through the ranks? Where would you recommend beginners invest in their education?
Kevin Kwong
For sure, I think just like what David said, education is essentially the most important thing I have invested in. I started into Hong Kong equity market for many years and there's forums online and courses that I will follow and learn from. Then in the US, I started, I ran into a person called David Sun, he's a good friend, now a fellow hedge fund manager, he's one of the best and the smartest mechanical traders out there. One thing we did really well to that process is to learn one thing and do it really well. And from there, you can branch out, and you can do different type of trading and whatnot.
Kevin Kwong
And one thing I want to mention is, it's important to make money, but it's also important to not lose money. And how, what, what do I mean by that is, as a trader, investor, or portfolio manager of a hedge fund, what we have to understand is the leverage and the risk behind a portfolio.
Kevin Kwong
General guidelines for me, for the funds and just for good a risk management protocol, I would say there's four things we typically look at. First thing is we want to make sure the strategies that we deploy is at least one Sharpe and this way, the risk is relatively low, and in return profile makes sense. Then a good Sharpe only matters if you have good sizing as well, because if you go all in and you just have that one time that you actually lose, then you, your, your Accounts Scott, right, so they call it VaR, which Ryan he talks up quite a bit about, value at risk is something that we really look into and follow. And we want a single trade to be less than 2% at risk at a given time to the portfolio. Then the last two things is, is the super boring to our fund is minimizing drawdown right. So it's good to focus on profit, but it's also important to focus on how much risk you're taking, right instead of focusing on profit, you can actually focus on risk. I mean, what is the risk for you putting on a trade? Lastly is expectancy, like I mentioned, positive expectancy and proper sizing of your trade will ultimately help create a successful trading career at a fund or portfolio?
Ryan Miller
Yeah, I love that. You remind me when I graduated, my wife and I, we got married in grad school. No, this is not a dating podcast, but bear with me, I'm going somewhere with it. As we graduated, we're getting to know each other and she's like, okay, so you got an undergrad in finance, you got a master's in finance? Did you learn anything different? And you know, hopefully I did, because I should get my money back. But I really did and, you know, I thought about it for about 10 seconds and I said, You know what the difference, I think in my thinking from undergrad, then this complements what you're saying. Kevin said, you know, when I was just starting out, I really just looked at upside and I remember when I was, you know, a million years ago, Facebook was IPOing and you know, you throw your only 100 bucks as a starving student into it open, it'll turn into a millionaire. And all I ever looked at when I was brand new, did not know what I was doing, but I wanted to because I only looked at upside. And while that's important, obviously upside is is growth, and it helps us to get paid. It was after grad school where I really started to understand exactly what you're talking about is to say, sure, yes, you need upside, obviously. But if you do not cover your risk, you may not live long enough in this game to even see the upside, the sunny days. If you're not positioned to make it through the winter, or the dark nights or however you want to put this, so you really have to mitigate your risk and understand it.
Ryan Miller
And so that's just my perspective and value at risk folks, for us noobs out there, value at risk is just saying, if this whole thing blows up, what's the maximum amount that we could lose? What's the value at risk and so Kevin is saying should never be more than 2% of your portfolio. Now, obviously, there's probabilities, there's all kinds of things in there. We're not giving you advice, we're just saying there are mechanics out there that if you're ever interested in launching a fund or just trading on your own personal account, whatever you think is right for you, talk to a professional advisor. But just make sure that you appreciate, don't be dumb like I was in the early days where you just saw the upside. Make sure that you're following what David and Kevin are saying, these guys are pros, they know what they're doing, and really appreciate the risk not only for your sake, but for people who are investing in you or backing you could be your mom, could be your spouse, could be your family capital. Whatever it is, all they're saying is you have a responsibility and that responsibility includes managing risk. Would you say that's a fair summary?
David Yeow
Yes, risk reward is important coupled with win rate, right, a lot of people when they first start to hear about you know, they just focus on win rate. But then you know what happens when that one time you lose wipes everything out? You don't have expectancy, so it's really important a couple risk reward, understand that if you have a four to one, five to one, what percent win rate do you need to break even, profitable? I think those are good fundamentals to stick to now help you understand how to mitigate your downside.
Ryan Miller
Yeah, I love that. You know, I'd love to shift gears on that. So we talked about risk management, we gave some tasty nuggets for people who are beginning, kind of reminded me of my early days, let's shift into the market.
Ryan Miller
Thank you for watching, if you've made it this far, we must be friends. So don't forget to like, subscribe and click that notification. But now let's get back to the show.
Ryan Miller
Now, obviously what you guys do, and all of us, this whole show is on private investments and alternative investments, but in the market, we're subjected to a lot of it. Now the cool thing about what you guys do is you have data around that. So I'm curious, reading the tea leaves or the matrix charts that you guys do at work at that magic? I'm really curious, what are you seeing? Where's the market at and maybe we can talk about where do you see it heading? Where's the smart money going? But first, what do you seeing out there?
David Yeow
Oh, man, we could talk about this all night.
Ryan Miller
And we have many times.
David Yeow
Yeah, yeah, I think the essentially, oil, stays elevated, inflation is gonna stay high. It drives everything else, travel for food, cars, transportation, logistics, I think the Fed has no choice but to keep the rates high for as long as they can until, you know, consumer spending and jobs start weakening. Then you have to look at the other side, right? Is job market actually truly strong, or just people just losing these $200,000 job and getting two, you know, maybe 90,000 jobs instead? And if you look at the job, it seems like a lot of the new jobs created are women related jobs. I think Kevin brought this up to me few days ago. And what he mentioned was, back in the days, the investments, Capital Work on the technology, which is deflationary, but now capital is going to all these, what do you call them? Kevin?
Kevin Kwong
Yeah, well, people is actually right. So...
David Yeow
Lot's of programs.
Kevin Kwong
We all bought the program, the system and so you gotta imagine, Ryan and David mentioned too, if you lose a $200,000 job, and let's say there is four $50,000 job that's created on data is so sad, oh, the job market is amazing, a lot job openings. But in reality, the saving rate and the spending rate and all that is completely different and the behavior is completely different, as well. So as you can imagine, more lower income jobs sometimes create a high demand as most of the money is actually spent. So, to understand the market really have to understand why inflation is sticky, why certain data is coming out as favorable, but in reality is actually not the best for the economy.
David Yeow
And to be told, like I don't really care about, that's the beauty of what we do is we basically, you know, be systematic and do the same thing over and over again, and we are able to capture an Alpha. While it's entertaining to follow, you know, what's going on in the market, you know, earnings, before the big trap, what's going on AI is exciting. But a lot of times what we learned over the years, the best way to lose money is to go into anything new and exciting.
Ryan Miller
Can you unpack that a little bit? I'm curious of what you mean by that?
David Yeow
Yeah. I mean, just look at what kind of, you know, look to the FTX, for example, right? It's exciting, we work on what's exciting, right, and there are nos with exciting, was game changing. This is the quickest way to lose capital is because it's exciting and it's you know, it's it's not what we do you know, I don't understand it, a lot of times I won't invest it, it's a good, you know, I think that's a good advice. I forgot who said it. But yeah...
Ryan Miller
I remember just to chime in, I remember to, I remember Warren Buffett, I believe is a credited to say, if it doesn't make sense, it doesn't make sense. So yeah, and I think that kind of is reminiscent of what you're saying is like, there's a lot of these new things, and they're flashy and the difference between is, isn't in fashion, or is it just a fad. And so a lot of these fads come and go, but it's not solid and so I think if I'm picking up, what you're laying down is, you're just saying, look, there's a lot of these new things that come and then they go, if you remember, it was literally, it feels like five minutes as as well as five years ago, when everybody was like web 3.0. I remember VCs are going hard and then just like overnight, they're like, what's that it's all about AI. And so you see these things flip on a dime, and these markets, all these new, shiny things and I'm arguably, literally part of that machine. So I'm making fun of myself on that one, but I think what you're saying from your opinion, and your perspective is to say, that's not a great way to run a hedge fund, in your opinion. Am I getting that right?
Kevin Kwong
Yeah, I think, I think hedge fund, running a hedge fund is one thing, but it's just, we only hear two good stories, right? Oh people make 1000 times their money or whatnot. But obviously every successful unicorn VC or investment console, maybe 99, or 900, that failed or that broke even right. So at the end of the day, diversification is important and understanding the type of investment and obviously one thing Ryan talked about is, having access to good people and invest in good deals that people that you can trust it's always important.
Kevin Kwong
And just being back in to your question, though, Ryan, regarding the market, like our thesis is, people don't really know where the market is. No one can really predict what's going to happen. We can only rely on some of the data and look at the probability. At the end of the day, this year 2024 is an election year and historically, election year is all bullish. So we have that in mind and we look at the probability of that happening and kind of position ourselves accordingly. However, I, we believe the best way to truly manage your portfolio on an institutional level is to be slightly more agnostic to what the market is doing. And that way you can actually position based on true data to somatic, scalable, mechanical and repeatable approach so that you can trade and generate Alpha over time, regardless of what the market is doing. So I think that, that's always been the philosophy of the funds that we've started is to essentially be delta neutral, if you will, or this
David Yeow
Uncorrelated,
Kevin Kwong
Uncorrelated to the broader market.
Ryan Miller
And that I think ties into some of the work that you guys do, your view and perspective on the world and how to trade is to say, because it's unpredictable, we literally trade like we don't know what we're doing. You didn't say that and just say, look, let's just pretend we can't predict the market. It's when people pretend that they can, I think, just my opinion. So when people believe they can predict the market, otherwise known as a speculator, that they start trading like it and they lose their cheeks in the second, they're wrong, they lose it, right, that's where we talked about VaR, and all these different risk metrics. And all these things that you have in place, they're like, ah, I don't need to know about any of that and trust me, I've done that in the early days. I was like, I don't know, I just I, for example, I like Facebook, Facebook's gonna go to the moon is gonna make me a millionaire off 100 bucks. You're an idiot, right? I'm speaking to my old self and now you're saying, look, you can't predict it. I remember the time when I was fortunate enough to hang out with Warren Buffett and he, you know, he taught me that the market can remain irrational longer than you can remain liquid. Meaning like, sometimes it just doesn't make sense, the market completely goes against conventional wisdom. And so if you trade like, hey, anything can happen and you build your thesis around that, which in my opinion, you've done that. Is to say, we actually can create a type of thesis where we trade our funds and we do that in a way that just says, hey, anything can happen. Let's be ready for anything. Would you say that's a fair summary?
David Yeow
Yep. You gotta assume you're wrong, just because you trade the futures, whatever, doesn't mean, you're a fortune teller. Right.
Ryan Miller
Exactly and one of the, one of the worst things, maybe the best things are one of the worst things that could happen to ya, so you make a trade and you get lucky and you just think I got it, the market's are just so easy. I got this, you're like, okay.
Kevin Kwong
Yeah, I mean, sure life example is you're right, like, last two weeks has been volatile, we trade our funds, we got stopped, but we understand the expectancy, right? So it's part of the whole equation, you lose some trade, is not best thing, it is impossible to win every single trade. But as long as the expectancy, the correlation, and the whole portfolio is set up. So that for us is a slightly neutral beta, if not just low beta, that way over time we can just let the statistics and the math to truly play out.
David Yeow
So a lot of things we trade our you know, go into deep research starts from deep research, right? And then you look at the stats, and you look at everything else from liquidity to sizing, you know, like you said, just because you gotta it right once doesn't mean you size up and go all in, right, that's when mistakes happen. So we trade with a lot of these things in mind and we remind each other as well.
Ryan Miller
Yeah, good. Good to have your brothers on the case is to triangulate, hunt, like raptors, these stocks. This is great. I guess in your case, these these derivatives. Shifting gears around third base, let's leave some competitive advantages for people, right. So if someone was able to talk to you, and they say, I love what you do, big fan of what you do, I'm starting out, can you give me advice you wish you had? What would you tell her?
Kevin Kwong
I would start David. So when it comes to the beginning, right, so investing in education itself, I think that was super important and from there, what we've learned is the continue education will open up a lot of different doors. And so there we believe, like we kind of talked about earlier around is, alternative investment is something that is more and more popular one and it's more and more critical, given the current market situation. And what I mean by that is, if we look at the average return of the last S & P in the last 30 years, we're looking at around 9.6%. versus the last 10 years is 12.68%. So we can see that there's a pretty significant reach, return difference the last 10 years versus the average. So a lot of data showing that the last time you might have borrowed, the future gain, and this might have to revert back to me. And another important part is the last 30 years might also close to 40 years, it has been the easy money policy. What that means is that the Fed or the government, everyone's printing money and investing in the companies and really driving the economy. And through this process, the average gain was 9.6%. From a true globalization period to potentially a more nationalist, or protectionism type of economy. We can kind of see the shift in the regime and there might be a lot less liquidity a lot, a lot more restriction that is building up in this world. Where I'm going, at the end of the day is, the return might be a lot less and we sometimes call it the lost decade. So if we look at the next 10 years, the S & P or the broader market might be pretty flat and if that's the case, inflation is high, return on stocks or investments are low then that just creates a huge real loss when it comes to their portfolio.
Ryan Miller
So we're dancing around the stagflation type of economic scenario, it sounds like and so we always make a call and make a prediction, and then obviously cover your positions if you might be wrong. And so sometimes, folks, we, I've heard David and Kevin use these big words, mean reversion, okay it sounds really cool. It's basically it says there's a long term average of a percent in the S&P like you're saying, but the recent average is about 13 and so what that means is there might be reversion back to the mean, which says, may not be as bullish as you think. And so going back to that, there might be some slow declines on that, I think is what I believe I'm hearing from you, Kevin, is that right?
Kevin Kwong
Yeah, that's absolutely right. One thing I want to add is, during this period of time, where it's high interest, there's a lot of newer products that come through that can truly increase the capitalization efficiency, and the way you structure your portfolio. And one example that our fund has been doing is a product called structured product. What that means, essentially, is a product that includes the link to part of it to interest, which is currently around 5%, from the treasury bill, and you use that as a good collateral and trade options, or derivative, or even long equity. That way you are, anything you do is on top of what treasury bill, the T bill was paying. So that's a really smart way and capital efficient way to structure something that can provide great value to investors.
Kevin Kwong
Last thing I want to mention about that structure product itself is, at the end of the day, because they are so uncorrelated, which we talked about a couple of times, like T bills, uncorrelated to our core type of trading to not correlated shorter term type of trading. When you plan a portfolio like that, it's not just returned and you are getting, but it's actually lower risk and I think that ultimately is the biggest advantage you can get is to have a low risk, low beta, but high Alpha portfolio.
David Yeow
Yeah, I've been talking to a lot of family offices and I've been finding, a lot of them are having more and more allocations towards alternatives and I asked them why? And part of the big reason is because they do think the market could, you know, could have a decade of going nowhere and in traditional investment, you know, 60 bonds, stocks, cash. So they are looking into alternatives like even more allocated towards like more high risk Cs, startups. I think going back to education is, to the listeners, as getting us here in whatever alternative that you're looking into investing and getting some understanding of what you're getting into. Whether it could be wine, or you know, real estate, but you know, a specific niche. It could be like a datacenter, you're trying to storage and you're or whatever it is right, get some education and get on hunt for it, get comfortable and know your risks and size your allocation properly. And to the extent that you're willing to, you know, you understand what you potentially could be losing and I think you can get a lot of asymmetrical return over the long term, especially in the next 5-10 years.
Kevin Kwong
Okay, I love it. I ask a lot of people this when we talk to them, and you're no exception. So I'm gonna ask you, where do you see all the smart money going? Like, we're in your opinion, where do you where do you see smart money going?
Kevin Kwong
Yeah. So David, mentioned, talked to different family offices, and smart money is truly going to a lot of alternatives and where we can see that especially is the large institutions, endowments went up. So I read somewhere and it's a, Ryan, you might find it interesting is the Yale endowment, Harvard endowment, they actually have over 60% in alternatives, like VC, private equity and hedge fund.
Ryan Miller
Yeah.
Kevin Kwong
So specifically, the newest September 2023 newsletter that Harvard came out with an endowment fund, they have 39% in private equity, 31% in hedge fund, and only 11% in US equity. So you look at it that way. I'm like, you might think, oh, why are smart money doing that? Why would they not just put in S&P and just ride it to the moon, right? The difference is the institutions are kind of agreeing, what we also seeing is that there's an asymmetrical risk to reward in the market going forward. Market seems amazing, right now there's a lot of liquidity, a lot of support from the government spending and whatnot, but liquidity will eventually have to end right. And ultimately, with the liquidity with uncertainty, there are a lot of inflow to alternatives, like our fund, VC, and even like crypto and whatnot. So at the end of the day it's about portfolio allocation, pick your favorite crypto, go buy it, but don't put all your life savings in it, right. So it's a, it's just have to be smart, like what David talked about, get the education, understand what the crypto is about, but it's a, there are a lot of different investments that might generate a lot more return, with a lower risk compared to the broader market the next 10-15 years.
Ryan Miller
Yeah. So I think what you're saying is just look for those asymmetrical, more return than risk, whatever that might be. So we're not obviously giving financial advice. We're just saying like, yeah, that's probably a good thing to lead your research in discussions with other professionals is just saying, where can I get a disproportionate return, given the risk that I'm taking? I love that. You're gonna say something? Something out there, David?
David Yeow
Yeah, I think just to be entertaining, I think anybody who was working a job, right? To think about, like, how many people reach financial freedom doing it for one day, right? Do you really want to be ignorant and just leave it, leave your financial fate to somebody who don't even remember 2008 and all this year, think about it, right? The newest grads out of all these analyst groups are eight, nine years old, to the other names. So that's why I pulled my money out of when I, when I left the day job and I managed myself, I traded myself, my family. No one cares about your money more than you and the government's stuck in, you know, in a hard place. They are printing, what is it, like, we're printing what a trillion dollars every 100 days, just in interest on the national debt? How do you get out of that, print more or raise taxes? So either way, you have to be ready for more expenses, probably inflation. So...
Ryan Miller
Yeah, that's you put it well, man, the government's in a tough spot and yeah, the people recommending these analysts that are making recommendations that other people who trade on their 41k, I think this is what you're saying is yeah, these people don't, they did not they were nine years old around there when 08 happened. So they don't have that, that level of experience of rough economic cycles to really draw on and guide their experience to say. And I remember learning this was a study that was done that showed there actually is an upward bias in a lot of analysts reports and they would test them and they would, they would spin the wildest thing. Now we're not saying the wrong, we're not saying they're doing a bad job, we're not really saying anything, we're just saying, do your own homework. And sometimes there's research out there that you can rely on, but I think what David, you're saying is is like but also if you do your own homework and really trust in yourself, you can also have a voice in the destiny of your financial future, rather than just relying on people who are nine years old back when the proverbial blood in the streets. And so really make sure you do your homework, have a great team around you like I do. You guys are on my team, I'm on yours and you know, it's certainly an honor. Just to wrap things up on that. Is there any final, any final words that you have that you would like to mention? Any ways people can contact you any, anything at all closing remarks?
David Yeow
Yeah, they can find me on LinkedIn. Just look for my name. Okay. David Yeow, Y E O W. Yep and I would say, you know, if you're looking for opportunities, the best way to do it is by maintaining a good reputation and relationship.
Ryan Miller
Sounds familiar? I love that. Yep. Reputation, relationships are the two most valuable assets in your possession. We say that all the time, David, and you're certainly a walking testament of that. About you, Kevin, any closing remarks?
Kevin Kwong
Yeah, you can find me via email. Probably the best way would be, kevin@pentiumcapitalpartners.com and closing remark wise, Ryan, you use the word stagflation right and I didn't want to alarm the audience or what not? So that's why, but there is a probability, right? We've been talking about expectancy probability and just think that if stagflation does happen, what would be the best type of opportunity out there? We're talking about high inflation, pretty minor economy, right? So all like flat economy or even a recession. So if we look at it that way, then we can understand what is happening in the world, and why certain asset classes doing better, commodity gold, crypto, and whatnot. So I would encourage listeners to like, we talked about do more education research and kind of learn different, instead of just reading the headline data, truly understand why certain situations happening. Why inflation is sticky, and whatnot, but with that, I think if we focus on having a good balance of portfolio, I know, Ryan, you really like to say at the end is like you, too can also make bills.
Ryan Miller
I love that.
David Yeow
I told you, you can make talk, we can talk about the market all day.
Ryan Miller
One of my favorite subjects. So yeah, I'm a knockout at parties that's for sure. So that being said, just to summarize some of the competitive advantages, alternative unstructured products have never been more important than they are right now. People are investing in those and it would appear that the smart money is directly going into that area at eye popping rates. So investing in those things, following what David and Kevin said in their opinion, doing these things will put you on the path so that you too can enjoy your pursuit of Making Billions.
Ryan Miller
Wow, what a show, I hope you enjoyed this episode as much as I did. Now, if you haven't done so already, be sure to leave a comment and review on new ideas and guests you want me to bring on for future episodes. Plus, why don't you head over to YouTube and see extra takes while you get to know our guests even better and make sure to come back for our next episode where we dive even deeper into the people, the process and the perspectives of both investors and founders. Until then, my friends, stay hungry, focus on your goals and keep grinding towards your dream of Making Billions.
