Mag 7 Falls Behind, How David Adelman Bought the 76ers, Bill Ackman Buys Uber
Feb 11, 2025
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David Adelman, CEO of Campus Apartments and newly minted owner of the Philadelphia 76ers, shares his fascinating journey from betting to real estate mogul. He dives into the evolution of the student housing market, emphasizing community impact and strategic investments. Adelman also discusses the thrill of sports ownership, including plans for a new arena in Philadelphia. The conversation highlights innovative startups in venture capital and the evolving dynamics of fan experience, showcasing the intersection of passion and business savvy.
David Adelman's entrepreneurial journey, starting at age 11, exemplifies the importance of early involvement in shaping future success in business.
The podcast explores the re-evaluation of the Magnificent Seven tech stocks amid shifting market dynamics, highlighting opportunities in diverse sectors beyond technology.
A new channel by Ritholtz Wealth Management focuses on ownership experiences, providing insights on wealth-building paths from entrepreneurship and investing.
Listeners are encouraged to consider the positive outlook for financial stocks in a rising interest rate environment, reflecting strong institutional performance.
Deep dives
Overview of Kelly's ETFs
Kelly's U.S. Cashflow Dividend Leaders Index, tracked by the COWS and HCOW ETFs, focuses on companies with high trailing and expected free cash flow yields that have a consistent history of growing and paying dividends. These companies are characterized as cash cows, which is reflected in the index's unique composition that offers significant active share compared to the S&P 500. The HCOW ETF further enhances income and reduces risk by writing covered calls on the underlying stocks of the index. This strategy positions these ETFs as distinct and potentially more rewarding investment options compared to traditional index funds.
David Edelman's Entrepreneurial Journey
David Edelman, a prominent figure in the podcast, shares an inspiring origin story that began at age 11 when he worked off a bet to an adult friend, leading him into the world of business. His early experience at a college apartment complex spurred his ambition, and by his twenties, he had become the CEO of Campus Apartments. Under his leadership, the business expanded nationally, providing high-quality housing options for students. This journey exemplifies resilience and a unique approach to entrepreneurship, highlighting how early involvement can shape future success.
Introduction of the Ownership Channel
The new channel, Ownership by Ritholtz Wealth Management, differentiates itself from The Compound by focusing on the experiences and insights of business owners and employee shareholders, rather than trading and market strategies. This platform aims to engage a broader audience interested in the wealth-building paths that come from ownership, whether through entrepreneurship, inheritance, or stock ownership. The content will feature discussions with various business owners to provide listeners with valuable insights into achieving financial success through ownership. This shift from market-focused content to a broader narrative of wealth creation signifies an expansion in the scope of their discussions.
The Magnificent Seven - Market Shift
The concept of the Magnificent Seven, a term used to describe leading tech stocks, faces a reevaluation as the market dynamics shift. While these tech giants had previously driven significant market gains, recent analysis indicates that their contributions to the S&P 500’s performance have waned. The podcast discusses how this broadening of the market, where other sectors start to gain momentum, may suggest a transition to a more diverse market landscape where opportunities exist beyond just the tech sector. This potential shift raises questions about the durability of the strong performances of these leading stocks.
David Adelman's Vision for Real Estate
David Adelman emphasizes a unique vision for campus housing, focusing on creating appealing living spaces that cater to the rising demands of students. His strategy includes recognizing the increasing need for quality accommodations as more out-of-state students seek better living conditions. By creating an environment that meets student needs, he acknowledges the business potential tied to offering desirable amenities. This forward-thinking approach positions his company advantageously within the competitive landscape of student housing.
Investment Strategies in Financial Markets
The podcast highlights various investment approaches, particularly focusing on the resurgence of financial stocks within the broader market. Participants discuss the strong performance of financial institutions, including major banks and alternative finance providers, emphasizing their lucrative business models in a rising interest rate environment. The conversation reflects on how economic conditions influence stock performance and investor sentiment, articulating a bullish outlook for the financial sector. Listeners are encouraged to consider these dynamics when evaluating their investment strategies.
Evolving Landscape of ETFs
The discussion also touches on the rapid growth and diversification of ETFs in the marketplace, indicating a trend where numerous new investment products are being launched to meet varying investor interests. The potential for both leveraged and niche-focused ETFs to capture attention and capital is apparent, and their proliferation signals a changing investment landscape. Despite concerns about the efficacy of new products, the podcast indicates that choice in investment vehicles can empower investors, enabling them to explore tailored strategies that align with their goals. This evolution points towards an increasingly democratized investment environment where accessibility to various financial products is paramount.
On this TCAF Tuesday, Josh Brown and Michael Batnick sit down with David Adelman, CEO of Campus Apartments, co-founder and Vice Chairman of FS Investments, and the founder of Darco Capital to discuss his early start in real estate investing, the growth of his portfolio, his experience in venture capital, and the mindset that has driven his massive success. Then at 49:25 hear an all-new episode of What Are Your Thoughts with Josh Brown and Michael Batnick!
This episode is sponsored by Kelly ETFs. To learn more about Cows and HCows ETFs, visit: https://kellyintel.com/
Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.
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