The speaker talks about the practicality of understanding how the real world works and how people's brains work in order to take advantage of opportunities and "do" something with money.
The 20% ROI rule of 72 in the private market means LPs have to triple their investments, resulting in a 5x fund in ten years. While some LPs may consider investing in venture capital despite low-risk rates, others may opt for cash or cutthroat investing strategies.
Passive investing, mainly in the form of index funds, has become popular but raises issues when it comes to corporate governance. Passive investors are at odds with the corporation, and this misalignment can impact the decisions made by company management.
The speaker emphasizes the importance of not leveraging companies with debt during the acquisition process and maintaining a strong balance sheet to ensure the net worth of the company remains robust.
The speaker shares their experience with investing in private equity and how it has been more beneficial for their businesses rather than investing in public equities. They also discuss the learning, connections and benefits that come from investing in private equity despite the potential loss of money and lock up period.