Global Outlook for Alternative Investments with Blackstone's Joe Dowling | SALT iConnections Asia | Summary and Q&A

TL;DR

Despite the constant market cycles and crises, the endowment model is still relevant, emphasizing long-term compounding, diversification, and capturing the illiquidity premium.

Key Insights

• 🍉 Despite 11 crises in the past 35 years, long-term investments have generated substantial returns.
• 🍉 The endowment model emphasizes diversification, capturing the illiquidity premium, and long-term compounding.
• ✋ Taxes, emotional decisions, media pressure, and high fees can hinder long-term compounding.
• 😌 Blackstone's competitive advantage lies in its access to data, deal flow, and global relationships.
• 🖤 Opportunities in credit with equity-like returns and safety are present due to a lack of capital in the system.
• 🌐 The US-China relationship requires tension diffusion, and global interdependence is crucial.
• 🪡 Bitcoin and digital assets can be a part of a portfolio, but regulatory clarity is needed.
• 💐 The next decade will focus on quality companies, cash flows, and back-to-basics investing.

Transcript

remember the day that you started on Wall Street I do it was um June of 1987 but you're making me seem like a dinosaur now you start right with a dinosaur June of 1987 I started in August of ' 89 so work in Temporaries um what's happened in the last 30 5 years and we count to this backstage there's been 10 or so calamities over the last 35 years an... Read More

Questions & Answers

Q: Is the endowment model still effective in the face of constant market changes and crises?

Yes, the principles of the endowment model, such as diversification and long-term compounding, are still relevant for successful investing.

Q: How has the market performed over the past 35 years despite multiple crises?

The S&P 500 has generated significant returns, with a dollar invested in the index now worth $34, demonstrating the power of compounding over time.

Q: What is the key to successful long-term investing?

Taxes, emotional decisions, media pressure, and high fees can hinder long-term compounding, so it's crucial to stay focused, avoid reacting to short-term market fluctuations, and think about the long-term.

Q: How does Blackstone's competitive advantage help in investing?

Blackstone's access to proprietary data and deal flow, along with its global relationships, provides a significant competitive advantage in making informed investment decisions.

Summary & Key Takeaways

• The endowment model, based on principles such as diversification and long-term compounding, remains valid in today's constantly changing markets.

• Over the past 35 years, there have been 11 major crises, but the S&P 500 has still generated substantial returns.

• Long-term investing and avoiding emotional decisions, taxes, and high fees are crucial for maintaining compounding growth.