Moiz Ali, Founder of Native, with a $100M portfolio, discusses investment strategies and business ideas. Topics include a stock market for residential real estate, Founders Card for X, Shopify for $100M DTCs, fraudulent Twitter real estate, and struggling stock prices of D2C companies.
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Quick takeaways
Real Estate Twitter needs greater transparency and scrutiny to combat fraudulent information.
Data should be used as a tool, not the sole determining factor in decision making.
Investors should critically evaluate the capabilities and incentives of wealth managers for effective wealth management.
Deep dives
Real Estate Twitter: Fraudulent and Misleading Information
Real Estate Twitter is full of individuals who spread fraudulent and misleading information about their real estate investments. Many of these individuals overstate their returns and misrepresent the performance of their deals. As an investor in multiple real estate deals, I have come across numerous instances where individuals make unsubstantiated claims about their success. It is concerning to see the lack of accountability and due diligence in the real estate Twitter community. While I will not name specific individuals, I believe that there is a need for greater transparency and scrutiny in the industry.
Data is Overrated: Putting Data into Perspective
Contrary to popular belief, I believe that data is overrated. While data can provide valuable insights, it is not the be-all and end-all in decision making. In many cases, people rely too heavily on data without considering other factors such as intuition, experience, and context. Data should be used as a tool to inform decisions, but it should not be the sole determining factor. It is essential to strike a balance between data-driven analysis and a holistic approach that takes into account the broader picture.
Wealth Managers: A Critical View
In my opinion, many wealth managers function more like used car salesmen than trusted advisors. While there are certainly competent and ethical wealth managers out there, the industry as a whole has a reputation for high fees, conflicts of interest, and a focus on short-term gains. It is crucial for individuals to critically evaluate the capabilities and incentives of their wealth managers, ensuring that their interests align with those of the client. Investing independently or seeking advice from fee-only fiduciaries may offer alternative avenues for managing wealth effectively.
Investment Allocation Update
My investment allocation has remained relatively consistent since my last update. I hold a significant portion of my wealth in short-term bonds, currently around $60 to $70 million. I continue to invest in the stock market, primarily focusing on holdings in Facebook, Shopify, and PNG. My real estate investments comprise around $25 to $30 million in properties that I own and operate myself, as well as $10 million as a limited partner in other real estate funds. Additionally, I allocate around $10 million to start-up investments. Overall, I maintain a diversified portfolio that balances risk and potential returns across various asset classes.
Importance of Investing in Facebook
Investing in Facebook during its downturn was driven by the speaker's conviction in the platform's importance to businesses. The speaker emphasized that many successful online retailers are heavily dependent on Facebook for their advertising strategies. Businesses that diversify their advertising across various platforms may miss out on the opportunities offered by Facebook's massive reach. The speaker also drew inspiration from their father's successful real estate investments during the financial crisis, which instilled the belief that undervalued assets present excellent buying opportunities.
Managing Wealth and Critique of Wealth Managers
The speaker discussed their approach to managing wealth, highlighting the importance of being actively involved. They expressed dissatisfaction with wealth managers, describing them as salespeople rather than experts in understanding the markets. The speaker recounted negative experiences with wealth managers who prioritized earning fees and didn't provide valuable insights. They also mentioned taking a more cautious approach to investments, focusing on assets like US Treasuries and the S&P 500. The speaker acknowledged their risk aversion but expressed openness to new investment opportunities that align with their vision for generating returns.
Episode 518: Shaan Puri (https://twitter.com/ShaanVP) and Sam Parr (https://twitter.com/theSamParr) talk to Native founder Moiz Ali about his $100M portfolio, investment strategy, and the three businesses he would start today. Disclaimer: This episode contains profanity and may not be suitable for everyone.
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Show Notes:
(0:00) Intro
(3:30) The worst way Moiz earned money
(8:30) True or False: Moiz stole the branding for Native
(12:00) Business Idea: Stock Market for residential real estate
Past guests on My First Million include Rob Dyrdek, Hasan Minhaj, Balaji Srinivasan, Jake Paul, Dr. Andrew Huberman, Gary Vee, Lance Armstrong, Sophia Amoruso, Ariel Helwani, Ramit Sethi, Stanley Druckenmiller, Peter Diamandis, Dharmesh Shah, Brian Halligan, Marc Lore, Jason Calacanis, Andrew Wilkinson, Julian Shapiro, Kat Cole, Codie Sanchez, Nader Al-Naji, Steph Smith, Trung Phan, Nick Huber, Anthony Pompliano, Ben Askren, Ramon Van Meer, Brianne Kimmel, Andrew Gazdecki, Scott Belsky, Moiz Ali, Dan Held, Elaine Zelby, Michael Saylor, Ryan Begelman, Jack Butcher, Reed Duchscher, Tai Lopez, Harley Finkelstein, Alexa von Tobel, Noah Kagan, Nick Bare, Greg Isenberg, James Altucher, Randy Hetrick and more.
