Fortune's Path Podcast

Eric Satz Makes the Case for Alternative Assets

Episode Summary

In this episode of the Fortune's Path Podcast, host Tom Noser interviews Eric Satz, founder of Alto, an investment platform that allows individuals to invest their retirement accounts in alternative assets like crypto, art, real estate - even fine wine. Satz discusses his journey of building Alto from scratch and the challenges he faced along the way. He also talks about the fun and not-so-fun aspects of starting a business. Satz emphasizes the importance of building a strong team and having the support of family and loved ones when embarking on an entrepreneurial venture. He also shares his thoughts on the financial industry, the value of alternative assets, and the role of luck in business success.

Episode Notes

Takeaways: 

• Why it's not so much that Eric is a believer in alternative assets, but that he believes in a diversification of investment portfolios. 
• That illiquidity of alternative assets is a feature, not a bug. 
• The legal challenges of getting Alto started took longer than the anticipated technical challenges of simplifying the workflow processes of alternative investments.
• The 'greater fool' theory in investments.
• How public markets are no longer being driven by the fundamentals of investing and operating.
• Alto's three levels of operation: a software business which owns a trust company and also owns a securities company.
• 'Historically good returns' in alternative investments = returns that exceed public market returns.
• Bitcoin, like money, is an invention based on faith.
• What comprises 'luck' in business: hard work, opportunity, and a third vector: remaining open to what's happening in the market.
• The cost - and there is one - to entrepreneurship.