Hedge Fund Strategies: Sam Narula on Mastering Compounding, Risk Mitigation & Generational Wealth

Hey Fit & Frugal Tribe!

Ever wondered if day trading is the key to quick wealth and lucrative side hustle?

In today's episode, we're diving into the world of hedge funds with the incredible Sam Narula, founder and CEO of Legacy Wealth Capital Management. With over 15 years in the finance industry and an impressive background in technology and management, Sam is here to demystify the often-intimidating world of hedge funds and share his wisdom on building generational wealth.

Sam breaks down what a hedge fund really is and how it stands apart from other investment methods like day trading. He's all about the long game, focusing on strategic, long-term wealth growth. We're talking about why it's crucial to start investing early, the power of diversification, and the magic of compounding over time.

But it's not just numbers and strategies; Sam also delves into the deeper aspects of money – its potential for both good and harm, and the importance of using it wisely. He emphasizes the significance of aligning investment choices with your personal risk profile and managing those risks effectively.

Sam Narula isn't just a financial expert; he's a visionary in the field. With an MBA from Duke University and a Masters' in Computer Science, his analytical skills are second to none. Over the last three years, Sam has dedicated himself to researching and developing investment strategies, bringing a wealth of knowledge to his clients at Legacy Wealth Capital Management.

Beyond finance, Sam's experience spans over two decades in technology, product management, and general management, making him a well-rounded leader in his field.

Key Takeaways:
Hedge funds are investment funds that pool money from various investors and invest in multiple asset classes, with the goal of generating high returns.
Day trading can be a lucrative side hustle, but it requires a different mindset and skill set. It is important to have a well-defined strategy and risk management plan.
Building wealth requires a long-term investment mindset and a diversified portfolio across different asset classes.
Risk-adjusted returns are an important factor to consider when investing. It is crucial to understand the risk profile of different investments and allocate your portfolio accordingly.
Money is a resource that can be used for good causes and to create more opportunities. It is important to have a healthy relationship with money and use it wisely.

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Transcript

[TRANSCRIPT]

0:00:00 - (Tawni Nguyen): It's like a doctor, a lawyer, an engineer. The Asian decent.

0:00:04 - (Sam Narula): Pretty much, yeah, I got the same.

0:00:07 - (Tawni Nguyen): Speech and here I am. Neither of those.

0:00:11 - (Sam Narula): I also have a background of 15 plus years. And in that we have outperformed S&P 500.

0:00:20 - (Tawni Nguyen): Like, what would you do if you were a 20 year old trying to make your first million dollar?

0:00:24 - (Sam Narula): Yes, I think when you look.

0:00:31 - (Tawni Nguyen): Everyone, welcome to the Fit and Frugal podcast. I am Tawni Nguyen. You can find me on IG at Tawnisaurus. I'm here with my friend Sam. Tell me more about what you do, Sam.

0:00:42 - (Sam Narula): Yeah, thanks, Tawni. It's great to be here. And I'm Sam Narula, founder and CEO of Legacy Wealth Capital Management. Primarily a long equity investment fund. It is structured as a hedge fund. What we really do, Tawny, is we build a portfolio of just large cap public companies, public companies that have a market cap of $10 billion plus that are fundamentally strong and have the potential to outperform S&P 500.

0:01:11 - (Sam Narula): So that's primarily our work.

0:01:12 - (Tawni Nguyen): Now, how do you wake up one day and just decide, like, I'm going to start a hedge fund? What was that moment like?

0:01:21 - (Sam Narula): Yeah, I think it all evolved. It evolved over time. Okay, now this goes back to 2005. I was doing technology roles, and then I somehow just had this inner passion or desire to go start looking at investing in stocks, options, futures, currency. So I started to learn way back in 2005. But while I was doing technology roles as full time, I started to work with the stocks options. I was learning about the technical analysis, how options work, how futures work, the whole realm of investing in the financial market.

0:01:59 - (Sam Narula): And then eventually, I did my MBA from Duke University as well. I had a focus in finance, and then I launched a fintech startup. The fintech startup was to automate the whole investment process across all asset classes, stocks, option futures, currencies, simultaneously managing the portfolio and the risk management. Also eventually from that, it led to, okay, I have a great strategy. I've evaluated so many strategies.

0:02:28 - (Sam Narula): I see an opportunity to launch this fund. And the purpose of this fund is it's long term and to grow generational wealth. Being in group of companies that are fundamentally strong and also growing. Well, that's how this fund. I had this idea and I launched this fund.

0:02:49 - (Tawni Nguyen): Yeah, because I hear that word circulating a lot lately, like hedge fund this, hedge fund that. But I'm kind of dumb and I like things simplified. So sometimes people can't really explain to me what a hedge fund is for anyone that doesn't know what a hedge fund does. I think that kind of cap, does that kind of encapsulate what it is that you're trying to do to build wealth?

0:03:08 - (Sam Narula): Yes, when we say so, I can simplify a little bit of what a hedge fund is. So generally, a hedge fund is classified as a fund where the managers of the fund pool investments from various investors and then they invest on their behalf. And they could invest in multiple asset classes, as I already mentioned, stocks, option futures, currencies, either one of them in a fund or it could be simultaneously in the same fund as well.

0:03:39 - (Sam Narula): And it depends on their risk management and their return on investment generation strategies. Now, hedge funds can be long and short. Long means they only have a directional up, directional bias. And the short is when they feel that all the markets are going to correct, everything is going to go down. So they actually can short stocks, or buy puts and options, or short futures forex as well.

0:04:11 - (Tawni Nguyen): Okay.

0:04:13 - (Sam Narula): But the hedge fund is a little classified more broadly, where an investment manager can decide as to what kind of strategy they want to put together. And it could be quite a broad mix as well. And most hedge funds, essentially most hedge funds are open ended funds, whereas the private equity and the VC funds are closed ended fund. The difference between open ended and closed ended fund is that open ended funds, the investors can invest anytime during the life of the fund, or they can also redeem.

0:04:54 - (Sam Narula): Unlike the private equity of the venture capital fund, the investors have to get in in a certain deadline, and then they are locked in for anywhere ranging from three to ten years. Generally it is five to seven years and that's it. That money cannot be withdrawn. And the reason is, if you take VC as an example of being a closed ended fund, once the vcs have it, they invest in the companies and the companies actually give the money, or they invest in the startups and they give the money to the startups. The startups are now incurring cost for their marketing sales, their product development and so forth. And that money is gone, expense, expense.

0:05:34 - (Sam Narula): So the only way now they can get the return is when they have a final exit. The startup companies or their portfolio of companies have a final exit. Right. Whereas in the open ended fund I'm investing in public companies, I can trade in and out anytime. Definitely we do have an initial lock in because it takes us a little while to get into the positions, or take positions in particular talks like Google, Apple, Microsoft and build that portfolio.

0:06:03 - (Sam Narula): But again, if the investor wants to ever redeem it, we can, within a certain timeframe, sell in the markets and then return the money back to the investor, or if the investor wants to put more money. Yes, we can allocate more into our portfolio positions of stocks.

0:06:19 - (Tawni Nguyen): Yeah.

0:06:20 - (Sam Narula): So that's what the open ended fund is. And most hedge funds are generally open ended.

0:06:27 - (Tawni Nguyen): I think I'm hearing some familiar terms, because you know how day trading has really popularized for me in my world, because I didn't really know anything about stocks and options and trading and all that stuff. Is that similar to a hedge fund? It's just at a larger scale.

0:06:44 - (Sam Narula): So someone can day trade in a hedge fund if they want to. But essentially, day trading, there are three types. One is day trading. Essentially, there are two. One is trading and investing. Now, trading is generally done. It can be day trading or swing trading. Day trading, you're not holding the position overnight, generally. So you enter into a position like, let's say you bought Apple stock today at something like $160 in the morning, and then by afternoon, you make a 50 cent profit or a dollar profit on it, and you sell and you exit, so you're, again, back in cash.

0:07:26 - (Sam Narula): So you didn't held the position overnight. And that is called day trading. And generally, you can do day trading with stocks, or you can even do with options. You can do with futures, forex, anything, any of these asset classes. For the same asset classes, you can also do swing trading. Swing trading is also trading, but you're holding the position overnight. And generally it ranges from two, three days, weeks to maybe two, three months. Generally, you don't go very long in the time frame when it comes to swing trading.

0:08:02 - (Sam Narula): So you feel like, oh, over the next two, three months, let's say I have a long bias. I'm kind of bullish about this stock. It will go up. I'll buy it now, sell it high later, or after maybe two, three months or maybe after a month.

0:08:15 - (Tawni Nguyen): Yeah.

0:08:16 - (Sam Narula): So that would be swing trading. Investment actually goes further long term, and investment generally tends to be more on the fundamental basis. It's like, yes, I see the company. Let's say again, I'll take the example of Apple. Apple, I believe it's right now. Let's say it's 160. As such, I would wait for it to peg a little bit and buy. But let's say if I bought it at 160, I'm just giving as an example now, 160, but I believe it will continue to grow for growth, six to 8% for next two, three years.

0:08:49 - (Sam Narula): And I believe that the price would probably be sitting at $200 to $20 over two, three years. I'm going to buy now at whatever, 160 and then I'm just going to sit on it for next two, three years expecting it to meet our growth consensus or the growth expectations of the company and then probably evaluate again after three years if I still want to hold on further or maybe come out of it. So that extra long term time frame is the investing aspect, but investing goes a lot more with the fundamental analysis.

0:09:28 - (Tawni Nguyen): Yeah. How do you feel about day trading? Is it like a lucrative side hustle or like a 1099 gig that someone can possibly do?

0:09:36 - (Sam Narula): There are a lot of day traders. A lot of them do that. Absolutely. And definitely doable. It definitely requires a different set of rules to trade with and a different psyche or psychological mind. You got to have that mental mindset to be able to do it.

0:09:57 - (Tawni Nguyen): Yeah. Do you feel like you can build wealth with that?

0:10:00 - (Sam Narula): I personally do date rate a little bit.

0:10:02 - (Tawni Nguyen): Yeah. Like for you, right.

0:10:03 - (Sam Narula): Not in my fond, my fond. I do investment.

0:10:06 - (Tawni Nguyen): Yeah.

0:10:06 - (Sam Narula): But I have a clear demarcation of the rules that I go over between.

0:10:10 - (Tawni Nguyen): The two because I'm always really curious about that because I always hear it. It's just not something like I do long term investing. I have never sold any of my stock and I didn't realize that was investing until it was investing. Because once all of these other terms came into play, like day trading, they're like, oh, you should day trade. I'm like, that's gambling to me because I don't know what I'm doing.

0:10:30 - (Tawni Nguyen): Like what we talked about. I don't do stuff. I don't know. I'm unaware. I'm uneducated. So for me, that would just be me burning money for me.

0:10:39 - (Sam Narula): So it could be gambling if someone is not actually, if they don't know what they're doing, they're just randomly buying and selling. That's gambling.

0:10:49 - (Tawni Nguyen): That's what I would do. I'm like, I'm guessing no.

0:10:52 - (Sam Narula): Yeah. Buy, sell, buy, sell. That can be gambling. But again, a lot of day traders actually go with the probability and they say, okay, now if I have a probability of winning 70% and a probability of losing 30%, and I place ten trades, seven trades win and three trades lose, and my every winner is at least equal to the risk that I am taking, then Netnet, I would be winning. That's a game of probability and that's one way.

0:11:27 - (Sam Narula): But a lot of day traders do that and that's how they make money. But not that every trade of theirs is profitable, but they rely on this property statistic that they have either back tested or they have seen it through their experience and they modify their money management, risk management principle based on that.

0:11:45 - (Tawni Nguyen): Okay, so there is a chance, like a good chance for profitability.

0:11:48 - (Sam Narula): People make a living out of day trading as well? Yeah, there's a great chance, but day trading is you have to know what you're doing. You have to know what you're doing or you have to learn from someone who knows very well. And you never want to start out big, you want to start out small, test the waters, see how it is, get a feel for it, adapt and then scale it over time.

0:12:09 - (Tawni Nguyen): Yeah.

0:12:09 - (Sam Narula): If someone is really good, it kind.

0:12:12 - (Tawni Nguyen): Of blows my mind, like the psychology behind money. Coming to terms with running a hedge fund, which is way larger amounts. What is your relationship with money in general?

0:12:26 - (Sam Narula): I believe, say money. I have a good relationship now with it. I believe money is one. It can be used for good causes. It's essentially a resource. So it's a resource that you have that helps, you have other resources that you need at the time that you want. And also you can use the money to make money, more money. The money works for you.

0:12:54 - (Tawni Nguyen): Yeah.

0:12:55 - (Sam Narula): And that's what essentially with all high net worth investors is. They've reached to a point where they have enough net worth that now they're letting the money work for them as opposed to anyone working for the money. As we progress in life and as our net assets and net worth grows, relationship from that angle changes.

0:13:17 - (Tawni Nguyen): Yeah.

0:13:18 - (Sam Narula): And also generally, I believe money, you can use it either way, good or bad, but if you're using it for a good cause and you're using it to grow it further, it's helpful to everyone. And if there is more money in the society, there's more spending also than half. When more spending happens, it creates more jobs, it improves the standard of living for a lot more people as well. The net net, I believe it's a great thing.

0:13:47 - (Sam Narula): And if you look from where we were 50 years ago, 100 years ago, the amount of money that was in circulation back then versus now, it's a lot.

0:13:55 - (Tawni Nguyen): Yeah.

0:13:56 - (Sam Narula): Of course there's an aspect of inflation also. But if you look at over 5000 years, we've had more abundance.

0:14:04 - (Tawni Nguyen): Yeah.

0:14:05 - (Sam Narula): All of us now have laptops and we can do so many things. We can buy things with just few clicks. And whatever you want to buy is there by your doorstep.

0:14:15 - (Tawni Nguyen): Isn't how easy consumerism is fed to us on a silver spoon?

0:14:21 - (Sam Narula): Yes.

0:14:22 - (Tawni Nguyen): It's like, yes, there's instant gratification of being able to have something delivered to you, like even your groceries. But at the same time, I'm wondering if it kind of removes the human element out of it because why are you trying to save that time if you already have the money? Or do people just. I don't think it's like a shortcut to wealth, but talking about abundance mindset, like, how does someone that's never invested or someone young in their 20s develop that kind of mental fitness to be able to endure building wealth?

0:14:55 - (Sam Narula): Yes. One has to be a little more focused around it and say, you have to set certain goals and aspirations and say, okay, this is where I am right now and I'm going to get a good job. And once I get a good job, I'm going to take a portion of it and invest, take a portion of it and save. I'm not going to take all the money and just whatever comes and spend. And usually a lot of it happens. All of that happens to a lot of where all the money coming in is also spent. Yeah, but the abundance, to build the abundance for one's own future, you got to learn to invest and keep investing.

0:15:35 - (Sam Narula): Whatever amount is there, take a small percentage of it and keep investing every month and you can leverage the dollar cost averaging principle behind that. And that way over building the wealth, most wealth is built, let's say a lot of it is built for compounding. If you let the money work for you over ten and 1520 years, you will see the dramatic impact it makes to your retirement down the line. So that's why one should start early, to invest as much possible.

0:16:12 - (Sam Narula): So that's one aspect of having an abundance mindset. So you save as much as you can, invest also as much as you can. And then definitely there are a lot of opportunities and people, they're working on one job and one should evaluate where they are right now, where they want to get to and how they can get to and start. There are a lot of coaches, there are a lot of courses now with the Internet and online stuff. There is so much information available that one should tap into and learn more and more. I think there's a journey, yeah.

0:16:51 - (Tawni Nguyen): Because anything you believe in or don't believe in is out there. It confirms your bias to the good or evil of money. So that's why I'm asking, do you think in your opinion, there's like a ratio in terms of how much? Let's just say on an average, like 100k income, right. Is there like a percentage they should be spending, saving, investing?

0:17:15 - (Sam Narula): I would say if someone is making 100k they should at least try to save 10% and invest that.

0:17:21 - (Tawni Nguyen): So the saving is investing is the same 10%.

0:17:25 - (Sam Narula): So you want to have some emergency cash money. Yeah.

0:17:28 - (Tawni Nguyen): Because liquidity is different than illiquid assets.

0:17:34 - (Sam Narula): Some of the asset classes are illiquid, and you have to give more time. I know you're in real estate, but generally real estate happens to be where you have to park the money for a little longer. But if you're in the stock and if you're in good companies, then you can put the money in there and you can draw out the money within seconds by trading with your brokerage. Right?

0:17:57 - (Tawni Nguyen): Yeah.

0:17:57 - (Sam Narula): So essentially the stock, let's say the public equities, give you a lot of liquidity, which you generally don't get with private equity or VC or even real estate. Real estate, you do get some income sometimes, depending upon the funds, they give some income, but your principal probably gets locked in for a little while.

0:18:23 - (Tawni Nguyen): Yeah.

0:18:24 - (Sam Narula): So that's the advantage of the stock side, is it gives you that liquidity. And again, now, even in real estate, as I know, there are companies like fundrise, someone just told me about here, where it's a small amount you can invest, but of course, they may not necessarily be liquid, but you can invest small amounts there. If you really want to be in real estate, you can still invest small amounts.

0:18:53 - (Tawni Nguyen): Yeah.

0:18:53 - (Sam Narula): But if you want to have liquidity and at a small amount, like few thousand dollars, that one can spare every month, then stocks is the way to invest.

0:19:02 - (Tawni Nguyen): Okay.

0:19:02 - (Sam Narula): Right. One can also, if they want to be safe and say, let's say they're building their wealth to buy a home down the line, then they can potentially keep it in either high yield savings or even the bonds. That way they can bill. But to say bonds may not go down in value is incorrect, because bonds actually have an inverse relationship with the interest rate and what we saw with inflation, interest rates going up, the bonds actually took a 15 20% loss.

0:19:35 - (Tawni Nguyen): Oh, really?

0:19:36 - (Sam Narula): Even though they're giving me a better yield now. But net net from their peak value, they've lost over 15 20%.

0:19:43 - (Tawni Nguyen): Yeah.

0:19:47 - (Sam Narula): You have to evaluate what macroeconomics of your situation we are in, what's going to be with the interest rates, and then accordingly, you have to understand when to stay in the bond and when you want to get out. If essentially the purpose is that you want to conserve your principal through bond, then you have to be watching for the macroeconomic environments so that you get out before it goes down. If interest rates are increasing, as what we saw in the last one.

0:20:18 - (Sam Narula): Yeah. So there are all these asset classes.

0:20:21 - (Tawni Nguyen): Okay.

0:20:21 - (Sam Narula): That one should. The way one should early on in their career, what they should do is they should evaluate all these asset classes and then see where they resonate a little more and what's easy for them to get going. And that's how they could start, I would say stocks and real estate is a great way. Stocks, bonds, real estate is a great way. Always have some amount in your high yield savings, as much as that's. Again, the high yields are dictated by what interest rates are prevalent in the current market situation.

0:20:54 - (Tawni Nguyen): Yeah. In real estate, we call it, we're cash poor, asset rich.

0:20:58 - (Sam Narula): Yes. So that definitely happens.

0:21:01 - (Tawni Nguyen): There's a little period of sacrifice.

0:21:03 - (Sam Narula): Yeah.

0:21:04 - (Tawni Nguyen): Right. And that's the wealth that I'm looking to build. Because you mentioned fundrise. Are you familiar with how their platform works or what they're about? Are they like a little bit or.

0:21:16 - (Sam Narula): Not a whole lot?

0:21:17 - (Tawni Nguyen): I'm not too familiar with that either. That's why I was just like, yeah, maybe I'll pick someone's brain about that. But there's always this component to investing that people always think they have to have a lot of money. And I'm kind of glad these apps, I guess, are giving people a little bit more chances to get into real estate, like you said, which for me, I need tangible assets. So if I'm investing in real estate, I like it because I can go touch it, I can smell it, I can walk it.

0:21:46 - (Tawni Nguyen): I know you got to feel for it. I can feel it. So if you're putting money into this imaginary kind of cloud, it's really hard to understand diversification and where money is going. So some of your investors, what is their profile, what's their lifestyle like, what are their financial goals look like for their wealth?

0:22:09 - (Sam Narula): Essentially because I'm into long equities. It's one long term, and two, not mostly, only invest in large cap, $10 billion plus companies. These companies are already established. So the $10 billion plus market cap companies generally fall in the category of medium risk. So now my investors are saying, okay, I want to put the money, I want it to grow, grow more than the bonds, but I don't want to take too much of a risk of investing in a startup directly or investing in some other high risk. I would say crypto is a high risk.

0:22:51 - (Sam Narula): So they don't want to do that. They want to say, okay, I want good, solid companies. I'm willing to take the medium risk or the market risk. And you say market risk. DSMP. 500 risk. So my investors generally fall in that category. And the same investor, actually, they're looking to diversify based on risk profile and to multiple asset classes. And the way when any investor asks me how to go about allocating their portfolio that they want to invest, I say, look at from a risk perspective. First, there are assets that you can invest in that have low risk, which are basically the bond and the savings that come in, that they're still giving you returns and yields.

0:23:40 - (Sam Narula): And then there are asset classes that are medium risk, generally the real estate, the stock market, the large cap companies, not the small or the mid cap, but the large cap, well established, like Apple, Google, Microsoft, Meta, they're already established, proven in the market companies, blue chip companies. Yeah, these tend to be more medium risk. And when I say medium risk, you have the same risk as SMP 500, which is a broad market risk, and then you have a third category of high risk.

0:24:09 - (Sam Narula): The high risk is essentially you're doing vc investing or directly to startup investing. Even crypto is high risk, at least on my perspective. And then you want to say, okay, I want to allocate my portfolio across three risk profiles. How much I should allocate, what percentage of my wealth I should put. Generally, it would depend upon what's the net ass net worth that they want to deploy. But a fair rule is keep about 20% at least in low risk.

0:24:43 - (Sam Narula): So bond savings, that's like a very safety net for you. Yeah, about 60% goes into high risk, a medium risk, and a 20% goes to high risk. Within medium risk, again, you have real estate as one asset class. You have public equities, large cap, public equities at the second. And that, again, you can distribute between the two. So 30, 30%, okay. Right. That's how I see it, as medium risk. And then 20%, you say, okay, this is something.

0:25:13 - (Sam Narula): It's high risk, it could be all gone. But if I do get the rewards, it'll be big rewards. So that's only 20%. And that you do say direct startup investing, VC investing, or maybe even people, someone wants to do crypto, then that's fine.

0:25:26 - (Tawni Nguyen): Yeah.

0:25:28 - (Sam Narula): So that's how I would generally allocate the overall portfolio as an investor. If I'm one of those investors, I'm.

0:25:36 - (Tawni Nguyen): Just curious on how you build your credibility, like the trust with these investors too, because it's kind of hard.

0:25:42 - (Sam Narula): Yes.

0:25:43 - (Tawni Nguyen): Establishing that reputation in this space.

0:25:45 - (Sam Narula): True.

0:25:46 - (Tawni Nguyen): And what does the relationship look like? How do you approach a person? And then how does that conversation get started? Like, hey, I know what to do with your money. Give me your money.

0:25:55 - (Sam Narula): No, that's a very good question. Definitely when you reach out to the investor. They asked me, of course, my background, and in my personal case, I personally started back in 2005, as I mentioned earlier, and then I did my MBA with the focus and finance, so I built on it. I also did a fintech, evaluated a lot of strategies, and then I launched this fund again, I also have a back test of 15 plus years.

0:26:26 - (Sam Narula): And in that we have outperformed SMP 500, at least in that back test result. Of course, now the back test could vary based on market conditions going forward. But again, at least that's another set that tells me what's the potential risk year by year, what's been my maximum risk, what's been the gains when the markets have been bullish or bearish. So that also gives a lot of clarity to my investors.

0:26:52 - (Sam Narula): I present that to them like, this is what I have seen. And then I'm not only just buying the stocks, I have risk mitigation techniques of saying, okay, I'm also leveraging. I'm using technical analysis with some predefined rules that if the markets suddenly turn and return by a certain amount or a percentage, I'm going to exit the position and then let the markets correct and then buy back again. That's one of my risk mitigation strategy as well.

0:27:23 - (Sam Narula): For example, in my own personal portfolio that I was modeling against what I would do in my fund, I went and cashed last year, back in February, March 2022, when all our technical long term averages, indicators, they said market, everything is getting bearish. So we came up and I'm waiting now things to correct and then try to buy them at a fair value. Okay, so those are my risk mitigation strategies. We also do conservatively options to mitigate farsight risk.

0:27:58 - (Tawni Nguyen): Yeah.

0:27:58 - (Sam Narula): So these are all the things that I actually discuss with the investor one on one. And that helps.

0:28:04 - (Tawni Nguyen): Yeah. Speaking of risk, have you ever taken loss, not from the fund or from a personal loss?

0:28:11 - (Sam Narula): Yes, I have.

0:28:14 - (Tawni Nguyen): What's your biggest flaming dumpster fire situation that you've ever faced that kind of haunts you still? Sarah story.

0:28:27 - (Sam Narula): I usually always invest small and then I build up. So if thing is not panning out, I won't invest more in it. And I come out. And as I also mentioned last year, when I came out, there were some, many stocks Netnet, I was break even, but in some stock I was down 10%. Some others I could come out at plus ten. So as a portfolio. That's another way of mitigating risk, is to diversify the portfolio in our fund. What we do is we build a portfolio of 15, anywhere from 15 to 30 large cap company.

0:29:03 - (Sam Narula): So that way we don't have an exposure of more than, we try not to go more than 7.5% in any individual stock or a company that we hold, try to limit to that, don't want to exceed. So that's another way. By having a diversified enough portfolio. Yes, one or two companies could suddenly go down, but then because of the portfolio diversification, it gets balanced out.

0:29:30 - (Tawni Nguyen): Yeah, I've talked to people that are in the stock market. Some have lost like multiple six figures. I've talked to people that's lost multiple seven figures. That's why there's always like a number fixated to a loss.

0:29:41 - (Sam Narula): Right.

0:29:42 - (Tawni Nguyen): I would not sure what their strategy is.

0:29:44 - (Sam Narula): Yeah, I would say what's important is to ask what percentage is lost. Because that's more important than. Because 10% of a million is 100k loss, 10% of 10 million is a million dollar loss. But again, that is both are 10%. So the important thing to know is, like, what percentage was lost of their thing.

0:30:04 - (Tawni Nguyen): Yeah.

0:30:04 - (Sam Narula): Like relative to, relative to the amount you're investing. So it's not the absolute amount, it's the percentage loss and percentage gained. And that's exactly where it leads to. It's a nice segue to understanding risk adjusted returns, which is there isn't anything that you will get return without risking any money other than savings account. And that is still a slight risk. What if FDIC doesn't cover it, but it is insured by FDIC? Yeah, but again, if something happens to you, I'm not saying, but again, essentially there isn't a risk. But you never know.

0:30:49 - (Sam Narula): What if FDIC is not able to pay for some.

0:30:55 - (Tawni Nguyen): Of these returns and all of this language? That's why I'm kind of curious, like how your upbringing was. Like, did your parents shape your worldview about money or however your lifestyle is now, does it reflect your upbringing in any way?

0:31:11 - (Sam Narula): I would say my family as such has been more engineering and analytical based. My brother, my sister, my dad, my mom was more home caretake caretaker. But everyone else, we've all come from the engineering science background and been analytical.

0:31:34 - (Tawni Nguyen): Is that typical in my family? In your upbringing? Right. It's like a doctor, a lawyer, an engineer. The asian descent.

0:31:43 - (Sam Narula): It is pretty much, yeah, I got.

0:31:46 - (Tawni Nguyen): The same speech and here I am, neither of those.

0:31:50 - (Sam Narula): But again, none of my family members were purely into investing. I was very passionate about it somehow. And I remember way back when I was in 9th grade, I took a course in accounting and I loved it. And one of my neighbors, they've been brokers for a very long, long time, and I would go and learn accounting with them. And because they were really good with financial investment, I think I had that influence from my neighbors about financial investments.

0:32:20 - (Sam Narula): I was learning accounting from them that's much younger age, and I was fascinated by that. So with that, I think somehow it just stayed for a while. I didn't use it. And then when I got a job and then finally I can invest little money of mine, that's when I got very curious about it again. It's like, oh, I want to learn how to invest. And that's how then I started learning a little bit about stocks. And then when I learned about stocks, it went to, oh, I want to learn about technical.

0:32:46 - (Sam Narula): Once I learned technical went to fundamental, it just kept growing with me. So that's been my journey.

0:32:52 - (Tawni Nguyen): Yeah. So you geek out in the same kind of like the same stream. It's just kind of led from one passion to another, right?

0:33:00 - (Sam Narula): Yes. I'm still leveraging my analytical skills. So as we were just talking earlier about transferable skills. So I do have some of my transferable skills from engineering to seeing some of the businesses. And then I'm leveraging that into financial investments now.

0:33:21 - (Tawni Nguyen): Yeah.

0:33:21 - (Sam Narula): And then definitely have to learn.

0:33:23 - (Tawni Nguyen): Been doing it for 15 years. But let's just say your portfolio never know what happens. Are you confident if it gets wiped, you can make it back in a short span of time with your experience?

0:33:38 - (Sam Narula): What do we do? Is there are a couple of things we are doing. One is we actually have technical analysis. If things are going bearish, we don't wait. We come out now, let's say overnight, suddenly some companies earning goes really bad.

0:33:51 - (Tawni Nguyen): Everything sets on fire. The world is like in a plague.

0:33:54 - (Sam Narula): Or some catastrophic event happens.

0:33:58 - (Tawni Nguyen): That's the one I want to talk about.

0:34:00 - (Sam Narula): Exactly. So we don't do a dollar to dollar risk hedge, but we do far side risk. And that's what I meant is if there's a catastrophic event, then we always buy far side puts the put options. So if, let's say the stock is $100, I'll just give that as an example. So much easier. Some stock is at $100 and it has options. We'll buy, put around every month we'll buy, put around maybe anywhere ranging from $70 to $80.

0:34:33 - (Sam Narula): Now let's say that stock had an earning and earnings is really bad, or some major catastrophic event happened, and that stock went from 100 to overnighted gap down to like $50 or maybe 40. This is you now, because that we had bought puts at about, let's say, I'll take it, $75 will get protected because the way the puts work, which is the option, is as the price goes down of the underlying equity, the stock, the puts value increases, and it makes up for that decrease in value of the stock.

0:35:10 - (Sam Narula): So stock is going down, my put is going up. So it counteracts the loss. And that's how we mitigate the risk. We are not saying we're mitigating the risk dollar to dollar, but we are probably after the 15, 20%, we start mitigating the risk, the downside risk of a stock through the put option that we have. So this is something to help us in case if that something happens over, we still have a portfolio. Yeah.

0:35:44 - (Tawni Nguyen): Like everything goes to zero, right?

0:35:47 - (Sam Narula): I mean, luckily, so far it hasn't happened. Yeah, but you never know. One should be prepared, and if it does happen, it's a great scenario to prepare for. And we do. We do that through buying far side put offs.

0:35:59 - (Tawni Nguyen): Yeah. So with the amount of experience you have, if someone was to wake up today and decided to invest, right. They're 20 years old, they wake up, they're like, I want to put my money to work. How do you see them make a million dollars? What do you think the time frame is and the strategy it takes to get to a million dollar net worth?

0:36:19 - (Sam Narula): It's a very good and a tough question, like, what would you do if.

0:36:23 - (Tawni Nguyen): You were a 20 year old trying to make your first million dollar?

0:36:26 - (Sam Narula): Yeah. I think when you look at investing, one should not have that get rich quick scheme. Investing is generally passive. So you have to keep in mind that the investing will give you about ten to anywhere ranging from 5% to 15% on an average. Right. That's the range is at 20 starting out. It's not that in ten years. And let's say they're putting, let's say even $10,000. I'm assuming that case. Right.

0:37:08 - (Sam Narula): Somebody is already gifted with maybe 100, 200k through their parents or something. That's a different story. But if someone just started out has saved $5,000, it's important to start investing little by little because you learn, one, you learn while you're investing how to invest, so you're better prepared when you have more money coming in to invest. Two, the power of compounding that's the biggest asset in investing over time.

0:37:44 - (Sam Narula): That's huge. But someone wants to get to a million dollars, then they should be investing. Through investing, they can learn how companies work. That's a skill that they build for themselves, that now they can say, I'm in this job. Now I can try to get a better job. If they're doing a job, and then a better job and better job, they.

0:38:07 - (Tawni Nguyen): Just make more money and then basically.

0:38:09 - (Sam Narula): Makes more money and invest more. And that's generally the path, right? Yes. Sometimes one can luck out with big payouts. That happens. That's a great way to invest back and build it. Yeah.

0:38:30 - (Tawni Nguyen): Get rich quick scheme is what think social media is telling everyone. It's like, hey, if you take my blueprint to this, you can get, there's.

0:38:38 - (Sam Narula): A lot of books out there, but.

0:38:41 - (Tawni Nguyen): If you really read, like, millionaire next door, they're truly frugal and really modern millionaires. Right. I love those books. Better than how to get rich quick. It's because it's a matter of time.

0:38:52 - (Sam Narula): Exactly.

0:38:52 - (Tawni Nguyen): It's a matter of time. It's a matter of lifestyle choices, too, because I know I made tons of mistakes in my 20s when I had way more money, but I wasn't really investing it. I was just kind of blowing it, doing all of these things, the quick cash, like, flipping it around, but I didn't put the time component to that.

0:39:09 - (Sam Narula): Yeah.

0:39:09 - (Tawni Nguyen): You know what I mean? So, yeah, sure, it was like, healthy six figures, but if I was to invest in it, I can't go back in time and kind of change my perspective. But what I gained from all of those mistakes, that's why I kind of asked you what kind of loss it took you to understand the dollar amount versus the time component, because it took me a good decade to understand what true investing is, not just making money, because that's what I was focused on is making the money.

0:39:34 - (Tawni Nguyen): But I didn't do the second part, which is let the money make money for me.

0:39:39 - (Sam Narula): Yeah.

0:39:39 - (Tawni Nguyen): So in the last few years, I'm like, my money better go out and bring me babies, bring me relatives, bring me, go knock up everyone and bring me home kids. That's what I want my money to do now.

0:39:50 - (Sam Narula): Right.

0:39:50 - (Tawni Nguyen): So there's a different margin on how the mindset kind of came about, because you can tell everyone, yeah, invest, invest. But if they're not in the place in life.

0:39:59 - (Sam Narula): Right. You have to be in the place of life. The assumption here is that you have some spare money. And now how do you use that spare money?

0:40:07 - (Tawni Nguyen): Yeah.

0:40:07 - (Sam Narula): Right. And what asset class you want to get into. So that's where we are. But if someone doesn't have, then you have to get to a situation where you can. But again, if you're aware that, yes, money can make money and money helps, it grows over time and it compounds, at least one will aspire to make more money and aspire to save and then invite.

0:40:30 - (Tawni Nguyen): Yeah, right. Easier to convert it to material belongings, like the materialistic things.

0:40:37 - (Sam Narula): Yeah.

0:40:37 - (Tawni Nguyen): Easier to buy a car than it is to wait ten years to become a millionaire.

0:40:41 - (Sam Narula): Yeah. It's our twenty s and I wish I had actually more of an education or an education to be financial savy when we were studying. And again, at that age, we had not seen the world outside. Right. There were courses or education, had learn about accounting, learn about finance, learn about that. We never did it very seriously. The reason is because I didn't have a real world experience outside to know what's the value of that.

0:41:21 - (Sam Narula): It was too early for me to learn. So we did learn just to get the grades and get through. Right. But not really learn from the fact that, oh, I could be using this down the line and it can help me in so many ways.

0:41:33 - (Tawni Nguyen): You said that you recently moved to Vegas too, right? Yeah, I forgot from where.

0:41:39 - (Sam Narula): So I moved quite a bit. I've lived in Boston, I've lived in North Carolina. I was in San Francisco and then last in LA. I moved from LA before I moved to.

0:41:51 - (Tawni Nguyen): Why Vegas? Like, what is it about this?

0:41:54 - (Sam Narula): Yeah, Vegas was mostly for my business. I was launching the fund. I was launching the fund. Nevada has lesser regulations for the kind of a structure I wanted in my hedge fund. When I came here, I could have accredited investors, but now they have updated the law and now I can only have qualified clients.

0:42:17 - (Tawni Nguyen): Okay.

0:42:18 - (Sam Narula): Whereas in California, for the hedge fund structure, where we can have an Aum fee, can only have qualified purchasers. Qualified purchasers are the ones that have a net worth of 5 million plus. Qualified clients have a net worth of 2.1 million plus, and accredited investors have a net worth of 1 million plus. Those are like, when I was launching it, I said, okay, yeah, to have those investors, I could even have accredited investors for the hedge fund structure that I wanted. So that's what got me.

0:42:47 - (Tawni Nguyen): Do you have investors that want to do development here? Like, are they mostly here or are they from where you've been over the past?

0:42:58 - (Sam Narula): Yeah, I'm reaching out across, I'm reaching out to a lot of people in California because I know them. I am also reaching out to hnis here locally in Vegas as well. And then I'm connecting and working with family offices. So there are some events that happen where they come. So I go reach out to them there too. Yeah, essentially wherever my network is, wherever I know them, and if they are qualified or they can legally invest in my fund, then I reach out to them and just let them know, like, this is what I'm doing.

0:43:36 - (Tawni Nguyen): Do you feel like your style of hedge fund and real estate has some sort of future together? Because we can hear about other hedge fund buying out real estate, doing private equity, just buying out portfolios of real estate. Do you see yourself doing something like that with your investors down the line?

0:43:53 - (Sam Narula): Yes. So I'm actually planning to have a hybrid fund. The hybrid fund is where we can decide. Not, I haven't decided yet, but we can possibly decide if this is the percentage of portfolio allocation goes into the stock and a certain percentage goes into real estate and within real estate it goes into. Could be like the self storage that you're looking at based on our prior discussion, or it could be single family houses or some other asset classes. So we could build a hybrid fund.

0:44:24 - (Tawni Nguyen): Hotel development or hotel development. I'm looking at multifamily developments here now.

0:44:29 - (Sam Narula): Okay.

0:44:30 - (Tawni Nguyen): Because I feel like we have a lot of opportunity even though, yeah, we're a little inflated and saturated from Californians like us, but still, again, it comes down to time, but for me, it comes down to the vision down the road. That's why I'm asking is because I am looking to align with investors that are more like minded, to keep more money here, to develop here, because we're such in a baby infancy stage.

0:44:54 - (Sam Narula): Infancy stage. Yeah.

0:44:55 - (Tawni Nguyen): And now that I see there's like a shift in investment styles and projects are still going up, it doesn't really matter what people say the market is doing. I don't think it really matters. It comes down to how investors see the market.

0:45:09 - (Sam Narula): See the market?

0:45:10 - (Tawni Nguyen): Yeah, because if they're willing to pour into our market, then that's.

0:45:16 - (Sam Narula): Yeah, and real estate is very location dependent. Right. So definitely every market like Vegas market is going to be different than San Francisco or La or Austin market, New York, Austin, Dallas market. They all have their own characteristics. So definitely if there are opportunities here in Vegas, even on the real estate side, that's what should matter to an investor. It's like, okay, this is my potential risk and this is the return I can get.

0:45:45 - (Sam Narula): Yes, I know the macro situation is different right now. Things we know on the commercial property side, a little slow or is going to be sluggish for a while. But again, if there's a particular type of real estate investment where, well, there's a great deal and the risk is that much and the return is more, it always comes down to what's my risk adjusted return.

0:46:09 - (Tawni Nguyen): Yeah. As we are speaking, hybrid model.

0:46:11 - (Sam Narula): And that's where they would love to invest, too. And there is an opportunity, definitely. And as a fund, we can always do a hybrid model where now you can have two very different asset classes that they can sort of balance each other out. Yeah.

0:46:31 - (Tawni Nguyen): Because I always think before kind of talking to more hedge funds. Right. It gets such a bad reputation just because, ooh, hedge funds buying out this and that. I'm like, no, I don't think, not every hedge funds manage through that lens. Like, yeah, Blackrock's buying everything. There's Blackstone and all of these other really big players that doesn't really care about the market itself. They only care about the money.

0:46:57 - (Sam Narula): Right.

0:46:58 - (Tawni Nguyen): At the end of the day, we have to come down to investors intentions, is they are there to make money, too. That's why I'm kind of asking, are they looking to pour into other projects, like more socially involved projects as well, or are they just like, give me the returns of 15%?

0:47:16 - (Sam Narula): Yeah. Normally when one sets a fund, you have to also define the mandate of the fund. And once you have defined the mandate, then you have to sort of stick with those guidelines. And you can't deviate the mandate that I have in my fund there is to invest essentially only large cap public companies. And then, of course, with that we can also do options and some derivatives, but again, within the public securities.

0:47:48 - (Sam Narula): So if I have to do something else, as you're mentioning, maybe the real estate, the social cost, then I have to set up a different fund and set up a different mandate of that fund. And that defines what all we are going to do. And then approach the investors so that the investors are informed upfront, like, this is what the fund is going to do, and that is what you're going to do. And that's one of the obligations of the investment manager of every fund, is to define what we have to do and then let the investors know upfront. And then, of course, stick with those guidelines.

0:48:21 - (Tawni Nguyen): Yeah. Because I feel like as a manager, you hold to fiduciary values of the interest. Right. And what benefits and what works best for your investors, too. It's kind of enlightening, actually, just because before meeting fund managers and all of that stuff, I still have that negative connotation that comes with a hedge fund, too. I kind of love talking to you guys. Just because I'm learning so much in terms of what a hedge fund actually.

0:48:49 - (Sam Narula): Is, eventually it does come down to what mandate they have defined. Now, I basically say that in my fund, I cannot guarantee, of course, but I am looking to have only market risk. When I say market risk, the risk of the SMP 500. So I want to be in our investments, I want to be close to the SMP 500 risk at a portfolio level. But some hedge funds are saying, no, we are willing to take high risk and we are going to shoot for high rewards, high returns. So there are some hedge funds doing that as well.

0:49:27 - (Sam Narula): It all comes down to, and some hedge funds are saying, no, we're going to keep very low risk, hardly any risk, but basically play on conserving the principal and a little bit return that takes care of the inflation aspect. So there is a broad spectrum of where these hedge funds could align themselves again, and they all define their mandate, and then they have to let the investors know. And the investors generally are told what's the risk to reward ratio or the risk adjusted return to expect, then they're willing to take that.

0:50:07 - (Sam Narula): And then again, that goes back, ties into the high level portfolio allocation that investors should do of their total net assets, which is put 20% and low risk, 60%, medium 20%, high risk. That 20% high risk could also be investing in some hedge fund as well. That is a high risk hedge fund. But not all hedge funds are high risk. My fund is more, I'm looking at market risk, SMP 500 kind of risk, to be somewhere close to that.

0:50:38 - (Sam Narula): Some could be even less than that. Just playing with the bonds.

0:50:42 - (Tawni Nguyen): It's a numbers game.

0:50:43 - (Sam Narula): Yeah, it's a numbers thing. Numbers thing. And objective of it, if you just.

0:50:47 - (Tawni Nguyen): Look at screens all day, or do you do anything else? Because that's one of my nightmares, is just sitting there staring at a screen all day.

0:50:55 - (Sam Narula): Looking at the screen, but not staring. I would say definitely doing a lot of work.

0:51:02 - (Tawni Nguyen): What's the lifestyle like of managing a hedge fund?

0:51:05 - (Sam Narula): I think there are two aspects. One is the investment aspect, and two, we're always also working capital raising and working with the investors. It can be social aspect as well to it.

0:51:19 - (Tawni Nguyen): Okay.

0:51:20 - (Sam Narula): I would say that's like a healthy sort of 50 50 mix there.

0:51:26 - (Tawni Nguyen): Yeah. It's like a nice balance in between having human interaction and just staring at charts or whatever. Use spreadsheets, maybe both.

0:51:35 - (Sam Narula): Yes, everything. There are charts. There's a lot of data that goes into it. And you're looking at a lot of data. I have a quantitative way of doing it. So I have a model, and then I also use third party sources to aggregate a lot of data and get third party confirmation. In my case, I have sort of, the data is aggregated, and then it gives me kind of a ranking or screening of the top 1020 percentile.

0:52:02 - (Sam Narula): So I reduce my data crunching through the model and the third party sources, basically in large caps that are about 800 companies that are $10 billion plus market cap. With the model and third party, I reduce it already to 50, 60 companies. And then from 50 60, I take it further to 15 to 30, narrow down further to 15 to 30. That's where I have to do the analysis. But a lot of analysis has already been built into the model.

0:52:33 - (Sam Narula): And the rest I have to do and just look at other things, do my own due diligence on them. So that's the work that I have to do. And then the rest is connecting with the investors, meeting, speaking with them, presenting, sharing what I do. That's the more human, interactive aspect of it. So I would say it's 50 50.

0:52:59 - (Tawni Nguyen): Yeah. Because I love the sustainability of building holistic wealth component. Right. Because not everything has to be about work. I mean, it should be about work. If you're maintaining your wealth because you're sustaining your wealth through making your money grow, I think multiplying your money.

0:53:14 - (Sam Narula): Yeah.

0:53:15 - (Tawni Nguyen): At the end of the day, too.

0:53:16 - (Sam Narula): Yeah.

0:53:17 - (Tawni Nguyen): And when we were talking about what is fit and frugal, how would you define a fit and frugal life?

0:53:26 - (Sam Narula): Yeah, great question. So I think, to your point, yeah, fit and frugal, I would say, is looking at it holistic. Like, I have a certain amount of wealth right now. I want to put in investment and then let it grow sustainably. I want to take a certain portion of that wealth and say, okay, these are some of the things that I am looking to do in life. And I want to live a life. I want to enjoy, I want to travel, I want to experience various events, or want to do some recreation, or maybe I want to do some social cause.

0:54:12 - (Sam Narula): And I know you went to Mexico to do some social cause. That's a great. So I would look at, okay, this is my total wealth. And it also ties down to, again, what you were saying, like, oh, I'm here and I want to get there. Once someone is, let's say, sitting at they have, let's say, I'll take a big number here, like $10 million and now they want to take it to 30 million. Yes, they got to invest some portion, a good healthy portion of it to let it grow to 30 million over 1015 years.

0:54:45 - (Sam Narula): But then again they want to take a few, like maybe a million or two and say, okay, I'm going to invest some in startup that I care for or I am going to do some of the money for social cause and then there is a little amount that goes into my recreation. I want to live life, enjoy life. We are also living life experiences is what we have come here for and that is very important to our evolution as well, our personal evolution, our personal development.

0:55:14 - (Sam Narula): And that comes through experiences. As they say, words don't teach experiences, teach it, definitely. So you want to allocate that way, I would say, but never lose the sight of invest whichever way one wants to do it.

0:55:30 - (Tawni Nguyen): Where do you want to go?

0:55:31 - (Sam Narula): Risk and all? Where I want to go personally, we.

0:55:34 - (Tawni Nguyen): Were to leave here tomorrow on a one way flight.

0:55:38 - (Sam Narula): Oh, that way.

0:55:39 - (Tawni Nguyen): Where do you want to go?

0:55:41 - (Sam Narula): That's interesting. I think I just want to be by the ocean at the beach. That's my place where I'm calm and I just let go and I just love it. I enjoy.

0:55:53 - (Tawni Nguyen): Yeah.

0:55:53 - (Sam Narula): And I actually drive down to LA for work. Whenever I do that, I hit the beach, I hit the ocean and I'm there by that.

0:56:01 - (Tawni Nguyen): Hermosa is really nice.

0:56:02 - (Sam Narula): Hermosa is really nice.

0:56:03 - (Tawni Nguyen): Yeah. Beaches in LA.

0:56:06 - (Sam Narula): Yeah, I lived very close to Santa Monica. I lived in west La myself, so I used to go to the Santa Monica beach pier. Yeah, that's nice too. And anywhere I don't mind. And I've traveled. I've been to many european countries. I do want to go to South America and even though our heritage is from the asian side, I've only been to Singapore, so I want to go to other southeast asian countries as well. Yeah, so those are some of the travel things, fun things that I want to do, experience it.

0:56:43 - (Sam Narula): But I think I've been to about a good 14-15 countries.

0:56:46 - (Tawni Nguyen): Nice.

0:56:47 - (Sam Narula): Or cities of 1415 different countries. Yeah, so I've seen that and I've lived in two different countries. I have a sense of the cultural sense, how the culture changes a country country and to be humble about it as well. And at a human level, even though the languages we speak when I go to another country is different, but at a human level I've realized, hey, we have our own human language that we can relate with each other even if we can't speak the same.

0:57:21 - (Sam Narula): So realizing that and understanding that and knowing that, oh, we all humans eventually interact at the same level, at the same platform, and we are all same, essentially, same great people, all of us. We're just going through different experiences and different evolution processes that we have chosen to do. Yeah, that's how I see human connection.

0:57:45 - (Tawni Nguyen): Is probably the most powerful. Just kindness, generosity, offering grace, which I feel like it's kind of forgotten lately. Once you remove the wealth and all of the numbers attached to a person's net worth, it all kind of comes down to unite in our vessel.

0:58:04 - (Sam Narula): We as a human beings are, how are we helping others and what are we doing for.

0:58:09 - (Tawni Nguyen): Yeah. So I know that everyone probably like with me, too, when I started going after my financial independence. Is there like a piece of advice that you would want to leave somebody today with? What kind of message, like, where you're at today that you would want to leave?

0:58:25 - (Sam Narula): I think one thing I would say is don't wait to invest. It's very important to invest. Learn about investing. There is so much information on the Internet, and if you're starting, then start small and see how it works. And then add more. Then add more. Don't take too much risk. And I would say investment is more of a compounding game. So think about where do you want your wealth to grow 10, 15, 20 years from now?

0:59:01 - (Sam Narula): And you're not only doing it for yourself, you're doing it for your family and for your next generation. So you're investing not just for yourself, you're building that wealth for your next generations as well. And if you learn, you can always pass that on to your next generations, too. And they will also have healthy habits of it.

0:59:20 - (Tawni Nguyen): That's true legacy wealth right there.

0:59:22 - (Sam Narula): And that's why it's named legacy wealth capital management. Exactly. That's why it's a long name, but that comes from that.

0:59:31 - (Tawni Nguyen): Capital management makes sense.

0:59:34 - (Sam Narula): You got it.

0:59:36 - (Tawni Nguyen): I just want to thank you for your time today, to acknowledge you for being here, your presence, it means kind of a lot to me because time is very valuable.

0:59:44 - (Sam Narula): Sure. And thank you, Tawni for having me over here. It's been a pleasure and greatly appreciate that. And definitely, I see for both of.

0:59:53 - (Tawni Nguyen): Us, can't wait to dominate this market.