Enrique Abeyta - Project M
Enrique Abeyta is the editor of Empire Elite Trader, a weekly investment advisory that focuses on quick gains through short-term trades.
Enrique graduated cum laude from the University of Pennsylvania's Wharton School of Business. During his time on Wall Street, Enrique founded and served as managing partner of two long/short hedge funds. In addition to raising more than $2 billion in assets, Enrique's impressive track record includes strongly outperforming the S&P 500 over a decade and serving as co-founder and CEO of digital media and e-commerce company Project M Group.
"Value investing is a death cult, it’s like cigarettes, based on negative information and playing to your fears, no value stock ever went up cause it was cheap it went up because it grew. They talk about Warren Buffett as a value investor but companies such as Coke and Apple have grown massively, so he is finding cheap growth stocks rather than value investing on its own."
We talked about:
- What is a Hedge Fund?
- Fund managers having no experience in the real world and no idea about what it takes to run a business.
- It's not about the management it's about the numbers.
- Nailing down your investing goals. What is your framework and what are you trying to accomplish.
- Taking your money seriously. When it is mixed with dopamine it can turn into a need and a desire to take risks to get a hit.
- It's much easier to be negative than positive
Enrique gave us an example of a company that he likes, Live Nation Entertainment (LYV:NYSE). They run concert venues. If AC/DC for example are going to tour the US, Live Nation will put the deal together, organise the venues and run the whole tour
They are doing zero revenue now because of COVID. They own the real estate, the distribution. They started out as a promoter but through time they have become a vertically integrated company. They own ticket distribution websites, merchandise companies, and small stadiums all around the world. They are able to capture in the value chain of the majority of what a music fan will spend. Live events have been a huge growth market with no digital alternative. Live Nation's market share is likely to grow as a lot of small competitors have been wiped out. They took over a lot of small and fragmented business in a number of markets and bundled them together, this gives them the ability to effectively use their scale which adds value to the business
Shares for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Shares for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation.
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