Scott’s Investment Portfolio - a Breakdown | Prof G Markets

This week on Prof G Markets, Scott shares how he allocates his investment portfolio between asset classes. He explains how he gains access to certain opportunities, and why he can take greater risks than most people. He also shares his biggest losses from the past year, and his biggest wins.
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Timestamps:
00:00 - This week's number
00:28 - Today's episode
01:02 - What does your asset allocation look like?
08:28 - What have been your biggest failures or losses?
13:30 - How do you manage liquidity?
21:03 - Do you have any income generating investments?
23:04 - What does Goldman Sachs do for you?
27:02 - Has anything happened this year that surprised you?
31:45 - Any investments you're excited about for 2024?
34:16 - When it comes to investing, what are your strengths?
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[@shaangandhi2862]

Love how Scott is so transparent with his investments. Not many would do this.

[@petersenoch9084]

Yea !

[@jor4288]

Ed is a natural interviewer. He has great future in communications.

[@shakthidhasan4544]

Scott superpower is that he is down-to-earth and appreciates what has been given to him. ❤

[@Username_CC_]

he has 4 homes I dont think that is very down to earth

[@Toomanydays]

I like how he admits his advantages that many don’t have. It pissed my mom off when I’d say is was glad to be born a white male with no problem taking advantage of it.

[@salvador_ii9771]

Always appreciate this “behind the curtain” kinda content. Useful to understand the rationale behind where to allocate money and why, even though Scott is clearly in a way higher tax bracket.

[@guru47pi]

He's in a higher income bracket, but if most of his income is capital gains, he almost certainly owes a lower % than anyone who's still working

[@lauraaugustine6142]

Let me get this straight.. Scott has access? Seriously though, big fan. My favourite are the sessions where he talks about his portfolio so transparently.

[@chrisarbourdale]

Scott-I respect the transparency about your investment portfolio. It's super interesting to get a sense for your asset allocation strategy and how it intersects with your business of being an advisor to companies that (ideally) offer you cheap equity. I agree with Ed-you seem like an incredibly competent investor. Sure you've made mistakes, and you're sometimes too full of yourself (and the market has punished you accordingly when you were). But to say that "my exceptional wealth is a function of things that aren't my fault" (37:05) seems like a huge understatement of your competence. Of course you're privileged and lucky, but many people are and many go on and waste their potential. It seems like you played your cards extremely well and that's what matters. Imho you shouldn't hide the reasons for your success behind excessive humility. Sure luck plays a role but without the other factors-hard work, resilience, curiosity, seeking and enduring rejection-you don't build a nine-figure net worth. I guess I just take issue with the large emphasis on luck towards the end of the episode. Otherwise: insightful as usual.

[@Sam-ne9ns]

🤣🤣

[@yamuiemata]

Despite being a ultra high net worth person...Scott seems down-to-earth guy and he's not bragging about being a good investor that got him the wealth. Also he emphasizes he has access to investments most people don't have as a result of his work and connections.

[@learningisfun2108]

And he often talks about being lucky and privileged. Don’t get me wrong, he’s super smart, well informed, hard working… but should he be worth 1000 times the average hard working person? Tax reform is needed IMHO.

[@yamuiemata]

@@learningisfun2108 don't blame the rich for using the system the politicians set-up He mentioned multiple times the system is broken and is in desperate need for reform to benefit working class people

[@tonyjackson8413]

Wow great episode!! Scotts transparency is so unusual and so educational. I mean often can you listen to a 9 figure businessman share his portfolio? This is easily one of the top 5 business podcast out right now.

[@AlanDuvall]

no one wants to hear that luck is the biggest factor (or one of them) but props to Prof G and those ketamine trips to have the humility to give it to us straight. His communication skills are not luck though. He worked hard to build those up I imagine

[@user-es9yk3sh6k]

I appreciate the honesty here. It's advise that I'll probably never be able to use as I don't have the access / funds to make such investments, but it is fascinating to hear nonetheless.

[@shapeshiftingpanda]

so basically Scott is mostly invested in stuff out of reach for the average person

[@pathologicaldoubt]

At least he makes no bones about it. Wish I had the ability to get pre IPO

[@TheDavidgarg]

Maybe it's a good thing. Unless you have a lot of capital, it's a straight line to bankruptcy if you make the wrong investment. Even if you get the right investment, there is a high chance that you'll think that "you got this" and increase your risk appetite and then you lose everything.

[@yanikq]

That's how the rich get richer. It's a big circle jerk...

[@Sidkearldoogan]

People are generally looking for some direction and this show is quickly losing touch.

[@thiagomassa9807]

Indeed, I really enjoyed the earlier episodes, but as of recently the channel has been mostly about Scott showing off. I mean, He can do whatever they want with his channel, but in order to make the channel grow he has to also add value for most of us. In the end he mentioned how he got 1.3x by calling the CEO, that's exactly what most people are tired off, that doesn't mean he's smart, he just got his way in easy. I'd be curious how much money if he'd make as a retail investor :-)

[@JN-si2hc]

What a great episode . Incredibly insightful and educational. Would love to see this be a regular feature on this channel.

[@ziprun2005]

Super generous of Scott to be so transparent. Thank you.

[@runabath]

ur the best guy to lisen to to get some prospetive on a different point of veiw and ur positive veiw thx dude

[@moorish8103]

This episode was exceptional. I almost always enjoy what Scott has to say and really appreciate the willingness to be honest and transparent. The only thing that I don't like about this podcast is when Scott gets in the geopolitics of the middle-east, where most of us understand he cannot be unbiased.

[@thomas6502]

Appreciate the insights into your thinking and process. Thank you.

[@peppy_pepper_player823]

Thank you Scott!

[@barriehep1759]

Thank you Scott for talking about this stuff - explaining some of the “secret rules of the game” is something that rich people never do!

[@yonathanadmasu2892]

The line of questioning this young man delivers is crazy good. So talented. I really appreciate this podcast. Most of the stuff prof G talks about goes right over my head but still love to tune in every week

[@ltvtv8540]

Amazing episode!

[@thejudgeholden]

Thanks for being so fucking real Scott. There isn't anyone like this on the web.

[@dollarette]

Money makes more money. Overall an honest look into how the wealthy re-invest and use their portfolio as leverage. It's important to take risk early in your investing career.

[@Qwairy]

They always talk about diversification, but if you start from nothing it's just sheer luck from not diversifying...(Options are statistically way worse do, but an analytical bet of concentrating into a certain asset might work out)

[@AEKerr]

🤯😬😂🤣🙈.... The opening joke, is always a killer 🥳🥳😂🤣😂🤣

[@jimgsewell]

Sounds like he needs to invest in some hand lotion

[@Mary-Mar]

I recently went back to school for Accounting and it's crazy eye opening. Accounting is the most "boring" part of business and probabaly the least paid, and I suspect that's on purpose. However, accounting teaches the language of business and you learn that EVERYTHING is about assests! Literly everything. Which makes the fact that it is nearly impossible for a regular person to get enough assets to be worth anything significant extra "nefarious" (My favorite Prof G word.)

[@Randomstuffytiscool]

Love the honesty, very refreshing

[@LevelofClarity]

29:57 Public is now participating in "payment for order flow" but they have offered to split this revenue with users that have been using their platform and signed up for this revenue share. Pretty incredible if they follow through with this. I should say, specifically what they are offering is when an equity option order is placed they are splitting the revenue from that order 50/50 with the account holder who is placing the order. Again, if they actually follow through with this it would be pretty awesome for their account holders who are actively trading.

[@ReasonableHuman1]

Thank you!

[@DanieleO.]

Awesome episode!

[@yashpatel261]

This is what humility looks like. People should see this and try to emulate.

[@duluthdjs2588]

I was eating a bowl of refried black beans when he said you have to eat shit. 😂 anyway Scott’s been saying don’t be afraid to fail for years and it has been the advice I have ever received. Super grateful for this man and all the lessons, knowledge, and wisdom he shares.

[@KK-pm7ud]

You need to change your diet man!

[@patrickmcgowan7826]

Thanks for saying "competence"

[@DrFractal123]

This was the most interesting episode. Ed kept it together as prof G narrated endearing stories where he made 7/8 figures because he is ‘lucky’ 😂 - kudos to both!

[@TR-lh9yz]

Prof G: if you want to use options to hedge/short, buying puts is usually a much better idea than naked short calls. Short call is a sucker bet, limited upside and unlimited downside. Long put you know exactly what your capped max loss would be but your upside is unlimited.

[@sebfox2194]

That is basically options 101 though. Anyone who knows anything about options knows that.

[@TR-lh9yz]

Except he doesn't know apparently. Because he said in the video he lost $15M hedging with short calls and it went the wrong way on him. Which is why I mentioned it. He says all the time that he's "not a trader", which makes sense.

[@NickBraun0]

Great converstaion. Super important to maintain liquidity if you're an entrepreneur or angel investor whether you have a net worth of $500k or $500M.

[@simmonds3930]

Luck = Preparation + Opportunity. You can have all the opportunities in the world but if you don't seize them when they appear you won't prosper. Likewise, you can prepare, prepare, and prepare, but if you never take a chance you'll never be 'lucky'. Scot doesn't give himself enough credit for his success. He said it himself, he's willing to eat shit from a silver spoon,. Silver spoon or not, you have to eat/take some shit if you want to succeed.

[@Ludinjapan]

How much of a cut does GS take?

[@jimgsewell]

Wear and tear? I never would have guessed that Prof G’s hands were so rough and callused.

[@user-hn6cu8ds9v]

In Residence in Cape Town can help with your luxury safe accommodations. Ego hour on The Proif G show is always fun.

[@justinwholland]

It’s rare that someone this wealthy is totally transparent about how access and tax loopholes favor rich folks.

[@jakejake7289]

I feel better when I hear that even Prof G makes investment mistakes 🙂

[@aleck67]

whoooo!! really appreciate you being honest about your investments and taxes. The part, where you did not have to pay tax for first 20M is fucking amazing! an idea for future topics ... it would be interesting to hear about the tax breaks, that are designed for the very wealthy.. and in general about your opinion on taxes

[@paxdriver]

21:00 investing in used engines to lease for air cargo from Mexico... Sounds like a Netflix series lol

[@shivangraisurana9955]

Ed is hot aff. I watch Prof G just for him. Ed >> Scott. Scott you gotta step up your game.

[@EricS977]

Are you sure the Goldman relationship is a fiduciary?

[@andreasyioupas2975]

Damn gotta get back to work after watching this

[@patricksuwala4090]

For anyone mad that he's investing in things that "the average person can't access" for private investments...don't worry, you're not missing out on anything. You holding an index fund makes more than his private investments (most likely). Private equity has underperformed S&P500 pretty much in any time frame.

[@Hsg1553]

The number of billionaires in the United States has not gone from 500 to 2500. It’s 756 right now. The total billionaires in the world is 2700.

[@gordonsteen8415]

Private investment means more time management. High risk. Markets are up. What is the failure rate? Markdown going to zero? Same with real estate. Same with buying options. Management fees. Services return pay more investments? ROI on each segment? Luck and timing, yes. Talent, yes.

[@JimmyKeeseeJr]

great conversation, but this should have been an additional podcast. I listen for market perspectives and updates.

[@KK-pm7ud]

No..this is perfect as it is. I never would have listened to it if it were an additional podcast.

[@moonboy5851]

I wish I knew how to get into private investments.

[@sailorforlifebestti3366]

I guess, it's' good to be Scott.

[@ludovicomassa4506]

1:21 so no crypto anymore?

[@stefanschumacher6208]

I wonder how different his results would’ve been had he just invested in the global stock market. Certainly would be cheaper and a lot less hassle.

[@KK-pm7ud]

He'd be worth a lot less.

[@cgoosen]

Shoutout to Cape Town.

[@rhvre]

I think the question left unasked was - with all this are you better or worse off than having to put all of this just to SP500.

[@tigreytigrey8537]

He wouldn't know. Because if he beat the S&P for 4 years in a row doesn't mean he would've beat it in 10 yrs.

[@todorkolev7565]

nah, he isn't trading in the efficient market, he gets on the ground floor of businesses he knows the leadership of. He's doubling his investment every year or so.

[@sebfox2194]

​​@@todorkolev7565 100% per year compounded over the long term would make him a better investor than Buffet and Simons, or anyone I've ever heard of for that matter.

[@jamesandersonwalsh]

As a boglehead, even I don’t think this is entirely fair. For the vast majority of retail investors (me) we’d be far better off sticking our money in the S&P, and forgetting about it. But Scott’s day job is allocating capital toward new ventures. So it’s not the same. Still curious to know if he beats or not, but it feels apples to oranges.

[@muxi0121]

Would be interested to know the % increase of Scotts net worth since the pandemic.

[@salvatoresabbatino4825]

Best joke yet…maybe because is the first one I got straight away!

[@CalcioCards]

There are more billionaires than 2500 in the US, most have it private businesses, real estate etc

[@andrewhart6200]

So basically Goldman's let's you buy into ideas that just so happen to come along once you have a certain amount of capital under their "guidance..." It's tough to take the investing advice directly as there is NO DIRECT WAY between my level of capital and "Scott the guy on several boards...(@ 26:00ish)" It sounds like you're getting a bunch of first looks at IPO's for not much unless it's direct intel on companies to buy into in a hurry....?!

[@Studeb]

Imagine if Elon had the same humble attitude to how he became so rich (being born rich), he might actually be likable.

[@sebfox2194]

Elon is orders of magnitude richer than Scott though. So, I wouldn't expect him to have a similar attitude about his financial position. Elon has over $100 billion, whereas Scott has around $40 to $100 million. So, Elon is at least 1000x richer.

[@arsenalite7085]

Humility never got anything done, when you are speaking about the Govt's running a racket of illegal immigration and arms.

[@top5-vid814]

So u are day trading 😊

[@antonomaseapophasis5142]

23:00 We are assuming here that you are not classed by Goldman as a "muppet" My understanding from Congressional testimony is that Goldman runs two sorts of investments: shit that they develop for a fee, and sell to their clients classed as muppets, and shady, massively profitable deals that they run for themselves.

[@Maipenrai55]

Scott has a net worth of $40M. I just can’t imagine continuing to play the game when you already won

[@davidbabin7672]

It’s a lot more than 40m. He made 75m just from one investment and netted 50m after his one third to charity. It’s probably a little over 100-125m based on his statements about his home value vs net worth. He also said it’s nine figures previously.

[@relentless-io]

Scott, keep the great jokes coming ffs!

[@tigreytigrey8537]

34:16... of course he refuses to answer the simple question honestly and instead gives this elaborate explanation to detach himself from all responsibility of creating wealth. This is the same tactic of not taking accountability when doing something wrong. If hes so embarrassed of who he is as a man why even put himself out here? HOLD YOUR DAMN HEAD UP AND HAVE A SPINE man. WE SEE THROUGH THE BS.

[@KK-pm7ud]

Humility isn't BS

[@tigreytigrey8537]

​@@KK-pm7udusing it as a tactic is. Which he 100% does. Since he feels the need to parrot it in EVERY SINGLE EPISODE. Only high-school kids and teenagers fall for that shytm

[@KK-pm7ud]

@@tigreytigrey8537 Grow up a little kid. Perspective comes from life experiences. Wisdom from getting your teeth kicked in enough times.

[@tigreytigrey8537]

@KK-pm7ud lol ive experienced worse than him. I'm an immigrant who ACTUALLY started with NOTHING. no "privilege" as he likes to put it. Have all my dream cars, my daily driver is a bentley continental. Take care of my family. Dream office you name it I achieved it. If someone like ME doesn't need to complain about "privilege" every 10 seconds he doesn't either.

[@johnny12style]

Wear n tear hahahaha

[@Nolimit276]

But you’re paying 2% property tax

[@jpatche]

feign humility by not wanting to say your net worth, but then mention its over 9 figures as much as possible

[@tigreytigrey8537]

He's notorious for that. He even uses this weird "self loathing" thing where he demonizes his own kind to appear like a "man of the people". Super disingenuous and disgusting considering all of his friends are part of that circle he demonizes.

[@learningisfun2108]

So, by that logic he is in a no-win situation. We will hate the rich no matter what they do?

[@tigreytigrey8537]

@learningisfun2108 no. It's badass to get rich. But FKN OWN IT. He does this pretend "ultra self aware white male privilege" act in ALLLLLLLL of his episodes. I obviously rock with his ability to get rich which is why i still watch. But pretending like he ONLY DID IT because of his "white male privilege" is BS. ANYONE can do it. He flatters himself by assuming ONLY "privileged white males" can do what he does. It's an insult to those who have made it who are white like him. I'm not even white. I'm mexican and it's disgusting TO ME to see his "im pretend ashamed of being white" act. It's like dude... GROW A DAMN SPINE and quit pandering already. This is poisoning ALL OF AMERICA RN. I'm proud of my heritage. I don't care what ANYONE SAIS about Mexicans. I'm not gna down play what I am because others criticize me for it. He shouldn't either. You know something is wrong when you see MEXICANS starting to feel bad for white people cause they're pandering.

[@bd7913]

Although you acknowledge your mistakes, your approach to investing seems to include a fair amount of ego ... On balance,it works for you, but can be disastrous for others.

[@christinecamley]

Reddit!!! Yes!!👍

[@ziv2liv]

100%... Real estate, real estate, real estate.... I don't believe in Stocks (Mainly cause I don't understand it), and certainly not crypto. 96% of my investments is in residential real estate, 100% of it is in SFR, which proved to me a gold mine since I started in 2008. None of my properties carry any mortgages (Except my own residence), all are 100% rented and all I have to do is sit comfortably and collect.

[@billwatt3775]

I would go short on your kids visiting you.

[@ZezeZebra]

Who writes Scott jokes?

[@nsiebenmor]

A pervert

[@IrnBruNYC]

The fact that Scott feels the need to incentivize his kids to visit him in his old age by owning property in cool places like Aspen is kind of sad, but it definitely sounds like how rich people think. Plus, I don't think that is actually true. Sounds like he has a great relationship with his kids. Owning homes in four different places means you are personally responsible for an insane amount of carbon emissions (via air travel) which will impose a hardship on your kids and their kids.

[@magalengo]

There is so much hypocrisy in Scott’s views that it is hard to sort out what he is really thinking.

[@HelloWorld-hb7yt]

Wear and Tear? from a knife? :)

[@DanaLeeGibson]

I am happy for Mr. Galloway's success. However, this is very depressing. I can't finish watching, it just reminds me of how impossible my situation is.

[@Qwairy]

The goal isnt to become a super rich like wtf, find a decent goal to be happy amd stop wasting time watching super rich kids on social media.

[@carlonharrington]

Small fry.

[@frankguerrero7147]

He sucks at investing 20% of everything he said was either exaggerated or a lie but i do think his income is really high

[@nomad9518]

How can u tell?

[@jimbojimbo6873]

He might be telling the truth but he sounds like he’s lying lol

[@atlantabob9544]

Two very creepy people.

[@easterntechartists]

This guy is the biggest hypocrite I ever heard in my life.

[@IanJames56]

Scott, grow up on the jokes ffs

[@stealtheye207]

Scott, disregard this guy. Keep the dirty jokes coming!

[@HughJass-jv2lt]

​@@stealtheye207❤