Episode 80: Flipping Wall Street with Randy Tate
Finding alternative investments and getting off of Wall Street is something we talk about a lot. If being on Wall Street is something that you are interested in, this is the show for you. Randy Tate is the CEO of Flipping Wall Street. This is an investing platform that allows regular investors to invest through an automated hedge fund process.
Traditional investing through a regular financial advisor can eat into your gains through hidden fees and expenses. The types of hedge funds that the super wealthy invest in are out of reach to most people. Flipping Wall Street is a SaaS platform that bridges the gap between everyday investors and hedging your investments.
'We build a unique hedge fund for each individual investor to allow them to participate in the same way that the wealthy participate.' Randy Tate (@flippingwallst) Click To Tweet
You can find Randy here:'What we’ve built is a system for the average individual to participate on Wall Street in a way that was reserved for the people with nine zeros in their bank account.' Randy Tate (@flippingwallst) Click To Tweet
- [01:43] How the traditional everyday person doesn’t have a way to be on Wall Street the way the wealthy do.
- [02:19] Managed funds and fees are a losing proposition because of the fees.
- [02:34] Randy and his business partner Kelly were tired of how investing was playing out for regular investors. His partner Kelly knew Wall Street, and Randy knew software as a service SaaS businesses.
- [03:59] FLIP is a system for average people to participate on Wall Street in a way that was reserved for the very wealthy.
- [04:33] Flipping Wall Street is automated trading software that allows Kelly’s brain to be behind the trades. They’ve stuffed Kelly’s algorithms into their computer. It is done automatically through a robot.
- [06:19] Betterment and Wealthfront are robo advisers that do what Randy refers to as a bucket trade. They have one algorithm and throw everything into a bucket and they all trade together.
- [06:32] When you build a true hedge fund, each individual stock gets its own unique algorithm and trades independently of the rest. In essence, it’s a private individualize active management of your portfolio.
- [06:56] The algorithms are the key distinction. Wall Street has created a bunch of myths like diversification. Our portfolios have between three and six stocks. Not timing the market is for the sheep. FLIP times the market with math, and the software buys and sells for you.
- [08:53] Randy and Kelly spent a lot of money coding proprietary software. The ability to time the market was reserved for the Wall Street elite.
- [10:14] Very sophisticated investors have access to systems like this to help them.
- [11:16] To invest with Kelly in the past, you had to have a 100 million dollar buy in.
- [12:25] Give Flipping Wall Street about an hour to get everything set up. If you want to learn about the stock market they will teach you, but you don’t have to learn about it. They are going to beat the market and provide a consistent platform.
- [13:47] Financial planners make money in and out of the market, and you get what is left over.
- [14:18] Advisers charge a series of fees. They aren’t very transparent and they don’t tell you the upfront fees of the funds, plus management and execution fees. There can be another 4% to 6% taken out in fees from the back.
- [16:15] Flipping Wall Street only charges $1.00 a trade, and you will probably make between 30-100 trades.
- [17:17] Last year, some people got over a 100% return. Double digits because of the math and the market timing.
- [18:03] Apple is a poster child for buy and hold.
- [18:27] Buy the software and go in and out of the trades. The software is a tax deductible business purchase.
- [19:57] Predictions for 2018. As of February 1st, you can trade bitcoin through Flipping Wall Street.
- [20:32] The tax breaks are going to do nothing, but fuel growth. The economy is going to boom. The market isn’t going down. Don’t listen to entertainers on TV.
- [21:26] Stick with the math, because it doesn’t lie.
- [22:16] Find a way into the market. The economy is going to grow. Put your money to work.
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