Welcome to the young wild financially free podcast and audio experience for we don't just talk about it. We live it. All right, welcome to the young wild financially free podcast. Thank you guys for tuning in Matt type you here got my co-hosts Andrew Roberts gone buddy. So we had a super exciting podcast with Andres and there's nobody like him as far as sophistication level that I've ever met with. Yeah. I mean coming in here that is just top-notch smart. No one's ever brought three pages of notes for to our podcast. Yeah, so he was like super organized but he is running or part of the UT endowment fund which is I can't remember I think maybe we talked about it but multiple billion dollars that they're managing and they're probably seeing some really cool investment opportunities all the time, right? Yeah, so it's fascinating. It's cool. It's not real estate, you know focused a hundred percent but investment investment focused and it's so cool that like what they do with that money is is you know, they donate to the fund MD Anderson right answer research right now, which I mean hits close to home for a lot of people and such a great thing. It's very awesome. Yeah, but this dude is set aside what he's done. What he's accomplished just is a great guy. Yeah, he went to Texas State University my alma mater. Yeah. Apparently we were there at the same time, but I guess just missed each other. He's probably studying while I was right? Yeah awesome guy, you know. Surprises, he played D1 basketball right? Try to play professional baseball. Yeah, that was that was his dream when he was a kid was my pro baseball and then you know, he realized where his strengths were and kind of went with that. So it was an amazing story for sure. Yeah. Yeah. I really enjoyed it. It's going to be exciting to see I don't think he's going to we'll see what happens. I doubt he's with UT for his whole career joy, and what would be the next move after running an endowment fund for UT something big so, that'd be Interesting to see yeah, I'm excited to kind of keep up with him and you know keep that relationship going just to support him and see where he goes. Yep. Yeah is a great podcast. I know that you know listeners are going to enjoy it. But yeah, I hope you guys enjoy and we're going to get to it. Thanks, the young well financially free podcast is provided by Calderon creative count on Creative was built on the desire to create projects with their clients not for their clients run by husband-and-wife Duo Joe and Katie Calderon out of Austin, Texas. 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You can find them on any social media platform at Calderon creative or at their website Calderone. At the dot Co we're super excited to have Andres Delgado here today. Hey guys. Thanks a lot of you happy. Yeah, man. Thanks for coming. I'm personally super excited. We met at somewhat of a party a couple months ago and you're kind of tell me about some of the stuff you had going on with UT and the endowment fund and I'm like, this is amazing this guys doing some big moves. So we would love to kind of jump in and hear about your story like how you got started in the business world and Just kind of give us a quick background if you don't mind. Yeah, I would love to do that. So, you know the way I got started really mean it's a long story of the want to take too long on it, but it's hard man. So, you know, I'm sure you guys got a lot of people are like, hey, I read Rich Dad Poor Dad in like, you know the whole like, you know, being like independent and financially free as you guys call it and you know, I think that's kind of really how I got started my dad. He's an engineer by trade but at the end of the day, he was always The children are because my grandpa was interpretor and I think he always pushed for that kind of mindset and I always felt like I wanted to do whatever I wanted to do regardless of what that meant. So always felt like, you know how to bunch of plan age never had a plan B and initially was like, I want to be a professional athlete and they became like I actually want to be a musician and actually, you know went for both they and then it kind of went through like, you know at the end of the day like, You kind of start like shooting darts and you find something that starts clicking and you start becoming good at it. And at the time I think we're involved. We became a huge influence on me reading some of these books and just like fascinated with the world like Equity investing and then when I went actually learn how to program at the Texas State University that you basically if you get in you could invest some of the endowment money they give the school the student managed investment fund you I think it will the time was like maybe half a million dollars or something like that. So you get to actually invest in the money would go towards like scholarships. I don't know endowed Professor. So it gives you a fiduciary duty towards you know, like that money. So like it's not like I'm just going to go and trade it at whatever is hot right now where you were, you know, thinking more like well, I wanted to trade based on what the long-term objectives of the fun. Tray Bays on like, you know, what's the asset allocation or the risk reward? It and that kind of started changing my framework when like what I wanted to do and that point I decided I want to become an investor a real investor manages money for all the people and so that was it started in or not. But so that was at Texas State University correctly Marcus. Is that where you attended you for your underground? That's right. Yeah, so I need to excellent. Go Bobcats. Yeah. What year did you graduate? 2012? Okay, I graduate 2014 going years before so I don't know if you've heard of this. Program but to me that was life-changing especially from an endowment perspective and he brought me full circle because like now I work for one of the largest endowments in the world, right? So going from just think it was up to a million I think now but it was a great experience and then it's funny because I when intentionally wanting to become an accounting and I was like, oh my god do accounting get my CPA, you know in a really like when completely different directions as you know, I sometimes like people are like well accounting is a safe job and like you always you'll never run out of account as I was like, yeah, I like that make sense. I'm good with numbers, but then like I realized that no investing was really something I enjoyed and I was passionate about right and then Dad took me to pursue something that in the financial institution called the CFA program, which is stands for chartered financial analyst and it's kind of like a CPA but like just for investment professionals. Turned out of Texas day. They actually gave me a scholarship to take the first look Sam. It's like a three-part exam. Wow, one of the hardest things. I've done to date Furniture. Yeah, you know, it shapes the way you look at investing as well. Uh-huh. Yeah, very cool man. I'm kind of curious. I'm a big history guy. You said your grandpa was an entrepreneur your dad was can you kind of tell us what they did and what you saw so my grandpa, he actually he had a hardware store in a small town in. Well, that's actually where I'm from and you know, like really really small town but he was really well respected. And you know, like he always like emphasize like, you know, sacrifice working hard and like, you know, very punctual person. So like, you know just things that you have to have if you want to be successful period in my dad, he was actually the first one in the family large family too. He got a scholarship and kind of thinking really prestigious engineering school in Venezuela and And if you want to work for like, you know the oil company and like, you know, I think he saw that like, you know, there will countries are a little bit different but he I think he saw that he didn't want to be a title, you know income didn't want to be tied to certain things and he was more like a ninja preneur himself. So, you know, he he's doing multiple things right now. It's actually doing real estate in karma along with my sister. They do, you know, a lot of things you guys do from like, you know resale like managing properties. Like just helping find deals for like both commercial and residential real estate. So, you know, he you know, I think he became a call him one of the best salesmen Zyra man. It's like, you know, he always told me like you're going to either you know, you're always going to sell something either yourself or a product but you got to always be thinking like, you know, what's going to be what is it that you're going to be presenting to whoever it is, right? Yeah, that's kind of also shape a little bit another time he was He was involving in you know, a lot of the time I think there were a lot of those which people call pyramid schemes but a lot of those bases came to third world countries and they're like one of the things they had is that they brought a lot of Education, you know books in like great training and one of those was actually reach that point that that's how he got a hold of it. How is Richard poured out a pyramid scheme? No. Okay. No. No I'm saying like was part of the training but rather kind of, you know, it was one of the things that you know to set up that mentality of like, you know, Equal of the Rat Race like saying so he just said that the stage for me as well and the time I was like, oh maybe I would want to do real estate. I want to definitely have multi diverse portfolio. And as soon as I got on I was like, well, you know, what's the difference between real estate and equities fixed income and all kinds of asset classes and I wanted to learn more and more and more and now I feel like, you know in an endowment that investing all of these things that are really large level. I'm like, it's great to have that context but Sure, you know I learn about things that I never thought I would have to learn and you know, we have like oil Investments. We have private Equity Venture like, you know, it's a really large portfolios for people that don't know. Can you tell us how big this this is a big fund? I mean, so the the last time I checked I think it was like 45 billion in total assets that we oversee and is the second largest in the United States involving the world next. Yeah, Harvard partly Tarver us and then yell why we just passed the L not too long ago. Wow, it's a beauty it's UT and A&M of multiple two-thirds of the assets Belong To You T. It's a humongous operation. Yeah, that's a lot. It's a lot in, you know help oversee the what we call the public market function and that's about their of the a so it's like roughly 10 to 15 billion. So to me is a huge Honor, you know, I like be able to you know, just have impact on those assets and you know, it makes you make decisions on a different different way. Sure that's one of these alert of Texas take like if I will go and I will make a by Apple because I feel Apple was the hardest thing of the time like I would think about it twice before suggesting it for the endowment funds because I was like, well this money if I lose it actually he's going to impact all the people maybe somebody's going to get a scholarship right? So it really makes you You want to do a for more work and Below more diligent about like the whole investment process? Yeah, so that's the biggest fun that I've ever heard of or talk to somebody that's part of it. So I'm curious was there like a big step like were you did you come from Texas day and all of a sudden boom? You're in this huge van. Was that a crazy? Yeah, you know, they like I think in the world of like institutional investing you obviously like you got your Ivy League's You know, you go to Wall Street and most of those people are going to come from like warned. However, Yale Princeton and like Texas day is not really a Target school. You know, I think I was one of the lucky few that got an opportunity to intern at Goldman Sachs, which is a very well-known Investment Bank in Beijing New York. And to me that was like obviously it really opened the door had an internship. They're actually within the it was a mortgages team which covers like I don't know if you guys are familiar with mortgage-backed securities. But there were instrumental in the financial crisis, right? So in some of the biggest more well-known deals in that sector came from Roman sacks, and so to me it was like wow, it's so cool. I get to go to one of the largest banks and learn from like some of the most amazing smarter people out there. So that was one of the ways that I got my foot in the door in the industry. And then did you get to go to New York or was it right that was in your class of internship New York before graduating them? They're finished. They offered me a full-time job. Okay, good boy. Yes, it was like, you know, you have to work really hard because not everybody got a job offers your yeah. Would you think about New York? Well York's amazing. I think that you know the culture there is something else I get people from all over the world, you know, I spent four years there. So for me, it was like now got friends from like all kinds of like Egypt China India like you name it all around America Puerto Rico like It's just such a diverse plays many things to do. I you know, you got Bart way you got like gray like rooftop bars like yeah, a lot of things that you know that it has to offer and for me like I'm a huge Runner so like running in Central Park huge a the New York City marathon twice. All right to this a pie my favourite Marathon at school. I was always cramp on it. You guys got something in common. He's a Andrews a huge Runner so really You go for a run. Yeah, I'd love to Maya I asked about New York because like that's one of my like dreams is to like I told my wife like I could be cool with running like a tiny one-bedroom apartment and just like living in the city and she wants absolutely nothing to do with that. So we compromised and we're doing nothing with that at all. We'll never go. So there we go near you, you know, this is funny because like yeah, you know, I always I always told myself you go to New York and I think most people fall into the category go to New York and you always put your you put an expiration date and then you revisit that day and I was like, yeah, I'm going for a couple years and then two years like become another two years and then you you're constantly re-evaluating. I think when I got there I was like, you know, I want to do two to four years maybe five in five was like eventually the but then you know as you got as you start seeing like over other people's life as they evolve and they want to have families then you got to think about like do I want to move to like the outskirts of New Jersey or like Like Long Island commute on a train three hours four hours a day. I'm like, I don't know if I want to do that and I like how he growing up in Austin and I'm like, I always knew the other the other side of that and even though like traffic here is bad, but it doesn't compare. Yeah just doesn't compare and you know and also size like, you know, you pay a lot of money for a very small plate She lays there. So I think he became he became that and that's why I like so I don't blame your wife. Yeah. Yeah, she's the smarter of the two of us. So I don't blame her either with that being said it was a great experience. That's cool and it'd be sorry to interrupt but you know that internship also, you know, let me to pursue a different besides the CFA, you know, I did this thing called a frame which is stands for Financial Risk manager. Okay, and one of the guys in the group in the murders of who goes by the smartest guy one of the smartest guys ever known he said yeah that one's harder than the other one. So anything that's harder. I'm like, all right. I'm going to do it like Yeah, so, you know, it's just those two really set up, you know, my holistic framework on risk investing. So yeah, that's kind of what really got me started in them that are dilated you Timco just finish up your question. Yeah. Yeah cheers about just that little comment you just made about you know, something being harder more difficult and you're like, you know want to take it on what do you think that comes from? What do you think that originated in your character? You know, I don't know I grew up playing sports. I think two years. So I was playing baseball and I think we few Crew That's where this again. I don't know but that's where I think probably came from and being in sports teaches you a lot of things, right? So like how to win how to lose and no one likes to lose right? I think as a little kid if you learn that like you're like well, why don't I why do I hate losing more than I like winning? And I think that kind of sorry shaping that framework and then as I got older I was like, well, there's there was all no, you go through different levels of pain, right somehow pain led to you know growth and I'm like, oh you think about muscle growth either stress arrest in danger, they grow and I was like, oh, so these all these things kind of help you get somewhere and like I mentioned earlier my grandpa singing like well, if you don't sacrifice you won't get any and I think that also goes back to that type of character Building Trades that help you want to like challenge yourself, right like, you know, like, Like, you know, I had to like leave my family like so young person come here and study and like do so, it shapes who you are. Yeah. I think that now it's like a consistently just seek for different challenges whether it's like taking a hard test or for towards the designation or like just like learning a hard subject in other language or now. I just did my or I guess not dead, but because it rained out on me, but they've my first half Ironman and Keep pushing that boundary and you never will never know those what your limit really is, right? If you keep doing that and just keep pushing that limit over and over. So I love that man. That's a good point. Well, we'll have to get you guys to both around and see who stops first with cramps to on my mirror. I'm right there with you. I played baseball grown up too. So I'm just curious what position you played. So which position I'll play a butcher. What's your favorite my favorite short stuff? So, you know, so one of the best shortstops in the history came from Venezuela. His name is Omar Vizquel. Oh, yeah, so my dad was a huge fan. He actually worked in Venezuela and number 23, which was my birthday is on the 23rd. So and one of my favorite to my favorite athletes Michael Jordan and LeBron James both were number 23. Yeah. So use a little thinner interesting shortstop, right Cleveland Indians clearly now. Yeah, that's right. Cool. So Now so you were in New York for four years for Goldman Sachs and so was it a direct I guess jump from Goldman Sachs to where you're at now. No, really. I spent four years and my role at Goldman it was you know, dealing with like, you know balance sheet planning Capital locations with CG, you know, different strategic projects that we had at the time and I knew I wanted to become an investor so like, you know, so things I did were like related to the what they call the Securities businesses, which is like trading Market making and I want to be more like a long-term investor with you know, policy statement. You have these strategic asset allocation and you decide like, you know how to construct a portfolio and then you wait out and like monitor it so I wanted to become the traditional Wall Street around go to a hedge fund or even like an asset manager group, you know, this is lesson right here, you know learning to being able to change direction because like yeah, I mean it is really tough to break in especially when on Wall Street, so I kept I was clinging to these idea that I wanted to become the next Warren Buffett, right and you're like, well, there's multiple ways to become an investor and then I was like, I could really thinking through what is it that why did I started this journey to begin with in you can back to the whole like whoa, like I enjoy my experience of Texas state that thinking of having Fiduciary responsibility towards like schools asset in and I was like, well, why don't I look into institutional investing and see what else is out there. I was like, I also wanted to potentially move back to Texas and I was like look at the two and I was like wait, there's an opportunity at these plays call you timko and one of the interns we had a Goldman, he's Dad. It was actually one of the person's I work with now came from your team going he had great things to say about his that's been his whole career. They're managing fixed income. And at that time I realized like, you know, this could be that full circle. I always envisioned and you know, like went through like it's a pretty long process but like by two months of interviews, can we do like a project like Mandarin selection project? Like how would you pick an investment in can you write an investment memo? So it really puts things in writing to see how you articulate like your thought process like you're investing process and then also the quantitative part. Can you look at the thing like portfolio returns mention returns is like how will you pick a investment a versus investment be in? Why and here's to like two decks of like to potential investors Investments. Like what will you ask these people and like you know, what were you trying to get out? And you know, I when I was working through the whole thing is like is exactly what I want to do and it's been a great experience being there for two years now and would never would know. I would not do something else that you know, like in hindsight. Everything is 20 is always 20/20. But yeah, I'm really really enjoying what I do. That's awesome. I guess I got a bunch of questions for you. So you got to take me to school here. But I've always kind of looked at investing and returns as the more risk the more potential for the return. How do you kind of analyze and like with having such a big fun? Do you have to say like, you know this we do want to be Ski, or we don't how do you kind of balance all those things out? Yeah, that's a great question. And I'm not saying your it's not a wrong mentality because like, you know, you do have to take risk to get any return right? I think right now like if you were to just think savings are yielding like lesson one percent, right? So that's zero risk, right. So if that's your goal and that's your objective, then that's the right investment for you. But as you start looking more like what what ability to take risks do I have right? So for an I mean we are basically an infinite Horizon investor, right? So like is support these assholes are supposed to last for a lifetime. Right? Actually not even laughed at like more like Generations, right? So when you have an indefinite Horizon, I think it changes your ability to take risk. So I'm like I can have money lock for 10 years and it shouldn't be a huge deal if you know in theory, but so therefore I could take more risk, but then you also have to remember like well, what's the objective like, you know, we want to give out scholarships. We're funding research. Those are cash flows at need to be used at some point. So when you're looking at the operational budget or how much do these institutions rely on that money, then you have to say well I need some some level of liquidity to be able to meet those objectives. So the way I think about it is like first what's your objective? Right? So it's my objective to maybe like retired 20 years 30 years or is it like to be able to fund? Research that's going to be starting in a year from now. Once you have the objectives set up then the next thing is like well, what's your ability to take risk based on that objective? Right? So if you if I need to if I need to basically pay for you know, I don't know my my son's college, you know, he's only 19 months but like in a month, I'm not going to go and buy a real stay acid that's going to lock me in for 30 years or something of that nature you go for something that would Would be a month tenure so that changes the whole game and you have to think about the objective first and then the level of risk that you can take before you can say. Well, what's the return as you expect from that that's a good answer? Okay. Yeah, I think that's the way we usually start an IU Timco, you know for an endowment like usually is about five percent Target return loss inflation education inflation, which tends to be pretty high higher than normal inflation. So, I think that's usually what sets up that. Then our ability to take risk is pretty high, you know because we really have a definite Horizon and that's why we have real estate Investments natural resources private equity in that basically something called endowment model, which is like since you have an indefinite Horizon you can take on it liquidity you can take on term risk 10 Premier like material risk. So I'm like you should be able to take the most risk at almost any institution so that helps, you know in setting up the framework on while you're going to actually We invest interesting. Yeah, so that was loose. My other question is like you personally having your own Investments. You probably have a totally different perspective because it's you know, different timelines and Lino not multiple billions. Exactly. It's different right you have to think about like I mentioned I will all work with Mount active follow people is like, you know, I'm going to get later into the topic of Financial Freedom because I know that's part of your your theme but right I think it starts with that. What does that mean for? So like for some people it's like I want to retire when I'm 40. I'm not. Okay. Well, you better start taking more risk right now, right? So the then your 20s you can take a yeah, a lot of ways right so that you can take in your 30s or 40s in the if you get to your 60s and that's when that's when you're taking risk, which you have a conversation, right? So I think that for me, you know, I'm relatively young so I think it changes the scope I can take a lot more risk than probably my parents, right? So that changes the portfolio which is primarily you know equities. Although like one of my largest Investments is in real estate and I'll get to that when we talk about probably behavioral biases because yeah, I mean we bought a house last year and like it was one of those things that it's like well now I have like a lot of capital tied to the actual physical asset. If you really want to grow long term Capital liked it's always been known that like either your you know, what I'm talking about Equity also from either private or your intrapreneur, that's your private Equity or if you've invested in the secondary Market public. You want to buy Apple or Google Netflix etcetera. So I think that's where like most people tend to gravitate to right? Okay, and my third question last one for me for now thinking about the economy like just in general, you know, we're in the real estate business every day. Personally. I'm looking at deals and I'm like, these are just crazy. I don't understand how people are paying it, but they are overseeing like two cats three cats four cats. In Round Rock Texas how to how does you know, I feel like UT and the fun would have a much bigger perspective and I know no one knows the answer but how do you think about that? I think before I answer these I have to say that, you know, it's just my belief and I believe we're a byproduct of our environment our experiences the people we interact with the information we come across and how we process all of these so is my opinion from that collection of things. It's know that your team coach opinion. Obviously, we do have a you know, risk team. We have like a strategic allocate asset allocation team which same sets up those Frameworks, right like, you know, but my view is that you know, we're probably late Innings, right? We're going to keep the baseball terminology, but I've been hearing oh, we're liking the eighth inning like since I started in files, so I'm like it's being a 10-year bull market if you start from like the fnac when the financial crisis Hit the low it actually last month was a 10-year anniversary from that low and he has gone up significantly. Right? Right. So one thing that's going to happen is like yeah, a lot of things are probably very expensive in a lot of asset classes and we're seeing that you know, it's just part of that cycle. You looking at the economic cycle that cycle whichever company Cycles you're starting to see like, where are we in that cycle? And we're definitely later stages. Now we one thing I'll add is that And this one might be a little bit different because it also was kind of engineer by like Central bank's right, you know after the financial crisis. It didn't just hit the United States hit Europe it hit Asia. So like all these different Central bank's got together almost and say well we're going to actually pump these economies and we're going to like basically just put a lot of assets to work and going to like lower rates and like incentivizes much as we can. And so now like you have these really long Market, That was kind of engineer and the moment that it shows a sign of weakness. They go in the public ass in an example happen recently. All right, I think December was a great example last end of 2018 markets were looking like they were going down south and they did and then what was happening? Oh, well, they were raising interest rates. They were reducing the balance sheet at the fat and then like the message they were saying is like hey growth is probably going to get out of control. So we don't want that and then those comments were in really well received by the Get in the market immediately reacted right saying like hey, you better help us out. And then the tone change now is like well, maybe we're not going to increase this year. Maybe we're going to reduce rates and then you're seeing how back to that same growth same, you know mentality like it's going to keep going up and you're seeing interest rates back down. I'm sure that's probably in the real estate market. It says it is a good thing. Right? So you're seeing like a lot of companies like Lenore Lennar which like at the time was thinking like, okay. We're late cycle now. They're looking a lot better. Home Depot is looking a lot better because you know, it's just incentivised, you know that the housing aspect and and I think you're going to continue to see that right because It's just tough to think that something could last forever and you got to know I one point that there's going to be a peak and it's going to come one way or another and you just have to stay true to your process, I think that's the key. So if you're not used to pain I'm certain multiple for an asset don't be feeling like well this time I bit different because look at what happened to bitcoin everybody thought that I could keep going up and that was insane. Yeah now I'm not saying that The bubble in the market but there's definitely something to think about, you know, is this time different? It is a little bit different just because of that Financial engineering going on by central banks, but at the same time, I like stay true to your process, like don't don't fall into the Trap like everybody's doing it and maybe people are paying these kind of prices and I should just go ahead and do it. I think that's a great point from even from a real estate perspective. I heard this once but it was like there's some people that want to sit on the sidelines. And and jump in when the market crashes but if that's your theory, you're going to be out of the game. Like that's when it's actually really hard to buy. So, you know, you always have to be looking at deals and analyzing and not get swept away and like you said stick to that process like it's okay. You can still buy deals in a hot Market if you're being disciplined about it. Yeah, right. Yeah, and I think in terms of the whole Market timing thing like, you know There's a there's a quote that I Walter you hear all the time is like being right but being early is the same as being wrong. So that's to your what you just said. So I'm like you got to think about that like well like I'm going to start selling now because the market might have Peak but like if you would have done that two years ago, right you would have missed out on a really decent Market in 2018, right? So in 2012 17 and then the other things like are you looking at other opportunities, right? So That goes to the you know hero biases. Like are you really looking at what's available like just because Austin is expensive doesn't mean that everything in Texas is expensive. And so I may be as a whole it is but like is it cheaper in Europe? Perhaps. So if you do have access to other Investments always you have to be up in mind and think about that opportunity objectively and holistically. Great point so I'm curious about because you just mentioned earlier about how you made an investment and I'm assuming a primary residence. Yeah with your home. So I'm just curious, you know with you know, your mindset in your background education. What was your emotional? I guess thought process through that transaction. So it's funny because I've always, you know, if you come from the school of thought that was like, / / you know, your personal property is owned investment. It's tough to really make that job right and I'll be the first to say that all my full emotional biases came to display the moment. My son was born we came back from the hospital and our apartment was basically much. It was flooding and wow. Yeah. So for the first day, we didn't know it would notice till later over the early the next day and then starting to smell bad and I we have to go to a temporary place and at that moment I think you know, I was a little Little bit probably emotionally unstable because like the first time you go in apparent sure and I was like, you know, I don't want my family to go through this like we're gonna go I'm going to buy a new house like I don't have to do anything to it. Yeah, it has to which I was wrong. But and in the same time, it goes back to that, you know emotional bias of self-control. I wasn't really thinking like, you know, oh well like, you know, this is the right time to buy how interest rates like all the things that you should think. About you know, like I mean, luckily, we you know from a financial perspective. We were applying for it. So it's not like, oh I'm just gonna go irrationally go back. I mean sure but the timing of it was definitely something that came from an emotional decision. And so we decided to build a house and that started the whole process and as I was going through it, then you start going through the my typical process to due diligence and the location that schools the you know, like meeting with the builder like I actually went and I talked to the people in the neighborhood. I was like, what was your experience with the builder? Like did anything go wrong? Like I went full on due diligence and I was like I said, well that kind of it's a way I would approach any investment. So and I looked interest rates obviously like there's so much you can control right at the time they were creeping up but they were pretty much stable. And then yeah, we actually locked our raid at the time the great time because then they actually rally and I was like man, I'm And now they're about those. I'm like, but I wasn't going to wait just one of those that you just gotta do it based on like your opportunities that I supposed to like the timing of it. It's hard to time interest rates if you're a buyer. Yeah, but you just have to be aware of where your painting sure. Yeah. I gotcha and also earlier you were mentioned that you wanted to touch on the topic of Financial Freedom. And since that's like our whole our whole Mantra curious about your opinion on it and what you wanted. 2 yeah, let's go. You know, I always you know, and I go back and forth, but I think Freedom you first have to start saying well, what does it mean to you? Right and if you were like if I was a financial advisor and you guys were coming to me and I want to be like in charge of managing your your portfolio. Like I have to know what that means for you. So I come from the school of like, you know, the Japan or ship and like in you know, I think that if that's for you Man, you have to do it because like it's so important that you take charge of your life. And what's important to you. Like say my sister's intrapreneur. My dad's entrepreneur and but like all you also have to think about like, you know, what does friends with freedom mean like if I were to tell you like well, you're going to get a lifetime contract on your next job right in the amount of money. You're going to get it's going to be more than sufficient for anything that you actually would like to buy or do then people who actually think twice about like do I really want to stress being entrepreneur because it's not for just anybody it requires a lot of work. And so I think that you know, you have to definitely like understand like what it actually means to you and put it on as an objective, you know, like for me like Financial Freedom, you know, it means yeah like the ability to like, I mean, I like to travel like we as family like to travel so like to travel I like to you know be able to help you know, always when I when I can I like to be able to like yeah, I was Wonder house I will always want to have like In an actual Investment Portfolio. I want your ously you want to retire when what you still can enjoy your life, right? So those are that's how I Define it but that doesn't mean it's for other people now for all the people in my main like, you know, why like I want to have a billion dollar in the bank like well, okay, that's great for you. But I feel like money at some point. It just it doesn't have the same effect. Like if you give $10,000 to a guy who's making $10,000 a year that seems like a ridiculous. Amount of money, right? But they like I should go to like, I don't know bezels and you tell them like, hey here comes a hundred thousand dollars. He'll be like how you know, not really prepared. So the slope I think he declines as you go through certain levels and so you have to definitely be objective about where that means for you and especially the word intrapreneurship it gets like Miss plays a lot of times because you know enterpreneurs a person who wants to create a company right in some people go for it because they want to have us what they say is they want. Time Independence, they don't want to have to go to a to 5 job. Well, okay great. Well, then find a job. That's maybe a midnight or like, you know, like Define what that really what it is that that means. Yeah. I think that's something that you know as a investment person. I think like it all begins with your objectives as you know, that's a great point. I mean, I think my brother and I are prime examples like I'm focused on on making money building the business growing and not necessarily for you. Fancy things but just to have opportunity to do things. My brother is like I'm good, you know, he retired from the Marines he's going to school and he doesn't have that drive and that's not to say that I'm more financially free than him or you know, whatever. So you're right. Everyone has their own definition of what that is. Yeah, and you know what, I'm one of my favorite books, it's you know, the book outliers. I don't know if you guys ever heard of it. Yeah, not mock level. Yeah, you know, he said something that I would always wrote it down. Like the qualities that work needs to have to be satisfying and this comes work as an entrepreneur. You're going to work right people forget to say that but you know, what is autonomy and I think that's one of the reasons a lot of people really want to be an entrepreneur you want to have autonomy, right? They want to be able to say like when they show up when they do it and what they do right without saying like but as you start progressing as entrepreneur and let's say that your business grows really fast, and now you're like, well they all the next step for me is to actually either Get a help from a bank right because you know, sometimes leverage helps real estate that's valuable proposition. And then or maybe you want to sell steak to another investor, right? I have a private business and you like I could use the capital we can actually use the money to grow and in as people start coming in that autonomy kind of declines and then eventually like right now Uber is going public guess what this corner probably, you know board directors regulatory things. They're going to have to do and that autonomy just Goes away now are the people that created who burn entrepreneurs they are but that autonomy kind of goes away. So, you know, you have to know what you know, what level of autonomy you're you're willing to tolerate, you know to be able to just do something you really enjoy and that's why you see like a lot of people eventually sell their businesses and in this I that like, you know why I like they lost control of it like didn't Apple fire Steve Steve Jobs and you have to come back here. I mean, come on, like that's a really good point man in the dollar to which are easier to find its complexity, right which like that's why you for you probably even tripping or is great because you want that complexity because yeah that is what really drives you I'm insurer mentioned earlier the ability to find harder things like constantly learning. That's that complexity right not get bored. And then the last one is that connection between effort and reward and I think that's the other reason why people become entrepreneurs, If they feel like oh, you know, what if I work harder, maybe I'll make more money as opposed to like if I work harder in my current job and they don't pay me more. I don't have control over that right. So I think that's another reason why you see that so you have there aren't many many jobs out there that do have that connection, you know, luckily for investment the investment people that that's a connection your judge based on your returns in how those returns compared to either other competitive firms or The Benchmark that you're supposed to be. And so on so I think that that that's just way too. I'm glad how you articulated that and we ride and you know have my own business. I know some people look at it like you got your own business, but you're a hundred percent right? You're still working and you still have things to do you by working more that if you owe $100 a to 500% way more. Yeah, but you love it. I do love it. I do. So, I think that's important the other day, you know being willing to put in the work. Just think about the resultants forget about the work, right? Yeah. Kris about I see on our itinerary here that about dealing with failure and you know knowing when to move on I'm curious about any personal stores that you may have about failure and how you were able to deal with that because I feel like you I mean with all this knowledge on investing in how to be a less emotional investor. You would have some insight on that. Yeah. I think honestly I think failure is the the key to success and now I'm being insane failure, but you just have to be understand that it's not really failure. Like, you know, I think I mentioned earlier like I wanted to be an athlete right? You know, that was my one of my first dreams, you know crushed. Unfortunately the whole like, you know, what lock equals skill equals preparation plus opportunity. I had the preparation and I had the opportunity, but guess what? It's like a given K lucky because Talon mad You cannot coach High especially in basketball. That's what they usually say. So yeah, as a guy who had dreams of becoming like, you know, a professional athlete those dreams were crushed because like, you know, there's just so much, you know having the right there's a lot of ways so that was one but it also led to learning how to fail. You have to learn to fail. Well, right. So like you can if you fell as something and then all of a sudden like you're like well like move to the next name, but you didn't Eli's what matter during that experience so the real experience. I actually went to California to do a tryout for the Lakers one of the summer league facilities. No way. Yeah, for real I get their man. These people are their eyes there are hungry. Like I've never seen those eyes in my life before because for them this was everything. Yeah for me. It wasn't even though I thought it was. All right. So I'm like men for some of these people. That was the only way how I always know how to what I could do, whatever I That was in mind that my dad told me and I feel like oh I could just do whatever I want sure could do it through school. I could do it through partnership. I could do it through whatever, you know in the same theme, you know, my drummer had a band we did, you know, we tour we did several things and you know eventually like you just became like that was the next step. I was like, I want to fix failing from the last experience and I want to go and I actually went to the Berklee College of Music for seminar there. R because I'm like this time I want to see what the best people are doing and I when in a learn how they practice that was one thing I was like, why did I felt the first time I wasn't practicing correctly. So I'm like I need to learn how these people are like what how much work at the put it in like, you know, the technique everything that needs to be there to be successful and I went to learn and I saw a lot of progress now then unfortunately investing really when I got the text stay it was a different thing a man like a lot Laughter Oh investing and I was willing to everything all that progress. I've made in the music world. I was willing to let that aside because I'm like, this is really what I what I want to do. And sometimes that's the the hold the next part understanding when to move on. Yeah, like despite all I could think like well already put in all this work. Why should I quit now? It's like no, it's not that you couldn't it's like you looking at the best opportunity. So in the investment world like, I mean, I only have Netflix through last year. We're on that sometime this year in a personal portfolio. And I was like I've learned like went to the realize like went to move on from that one investment to the other. I had to sell Facebook at a loss and because I just decided that the regulatory pressures that I saw in the company were just not something that was willing to be comfortable with and people are like some people could have been like well would you sold the too soon look and rebounded I'm like that's fine. I didn't want to deal with that. Yeah, you know my thesis changed. So the moment that happened I need to learn when to move on. The same thing the opportunity set changes as soon opportunity in the investment world and I'm like this is what I want to do and I want to pursue all the work you did before it's just you know, it's just that cost is gone. It's just, you know, some costs move on and so though that wasn't failing but like it was me deciding when to move on right that's act like it's a big it's a big thing that people struggle with is knowing when to move on because you know, I know you said you have sports background, you know, I played football on you know, One of the things that I learned it was like not to quit right not to give up. And so that's something that I feel like a lot of people struggle with especially in an entrepreneurial mindset is not wanting to give up and move on but like you said, you know, you got to see the opportunities for what they are and make the smart decision for you. Yeah, and it's not failing at the end of the day because you know, like one of my favorite investors out there. It's a horror marks from Oaktree capital and you know why his books. He says like experience is what you get when you didn't get what you want. And that's okay because it's like that experience carries on. Yeah, right and then like some of the best investors out there they've been around they have seen Cycles if seen like 30 years ago. Like when you inflation was actually something that drove the market in right now that's gone flashing is not really something that people are really paying attention to so, you know, you see like the bubbles right the financial crisis bubbles. Now, I can say I said my experience taught me and I was grateful I Bitcoin because you know, I'm like that was my first bubble. I'm like that's great avoided it and I was I knew I wasn't going to get carried away with it. And I actually if I would have had the ability sure I would have shorter the hell. Yeah, I want to look into it and I'm like I did too. Okay because they open the features and I was like, oh this is what exactly but then they collateral you have to pose. I was like it was just they were it was too much money to you have the post and it would have paid off but I was like, I don't know if I want to do it didn't seem like the kind of risk because people can Be rational Marcus could be rational for a way too long. Like why am I willing to if I'm early I'm wrong. So I'm like right. I didn't know if I was early or late. So I just decided to stay on the sidelines. Well, I heard today they just made it simple. Somebody said failure is feedback. I was like that's genius. It's all it is failures feedback and you have to you know, you have to be even killed also when you win right because people focus too much on like wheat learning when you fail, but I'm like you kindly When you when you do things right because sometimes that you know, if you're on a roll like and why did I do why am I getting that success now? Like the man that last deal went? Well, what do you do then that I can do now and like, how can I carry that on? Right so you have to like stay, you know, stay even when you're losing stay even when you win absent get the hype, you know, you have to think that ego can sometimes like really force you to do things you don't want to do so, that's a great Point as well. We'll shoot man. You have a lot of different. Rounds thank you. Maybe the most interesting man in the world. I just Lakers baseball. That's what life is about. I'm sure you guys know that yeah, I fell well there well, that's good. I mean that's a lot of people can learn from that feel like we could, you know, just keep talking to you for hours and hours on end, but we're getting to a little bit of a, you know a time limit here. And so I kind of To wrap up with asking what you're doing present day with the endowment fund and just kind of an update on that. Yeah. I mean right now my role is, you know, we first of all I can and I want to put a high level like we have like an investment process that we follow so we have teams that set up our objectives. They set up our wrist limit it set up how much we're going to be allocated as an asset class. I cover public equities and fixed income. So like we about 15 billion in total. Total and once you know like that, then the rest is like our job to construct a portfolio for that asset class. So we basically have a manager manager model where we invest in some of the best investors in the world across Market. We have us Europe China like anywhere you can imagine we have money on the floor. And so one of the things we do we want definitely we monitor the portfolio constantly looking for better like rip. The managers not doing well. We constantly looking to see like how can we better a portfolio? So that requires a lot of due diligence. I'm just finished a very long due diligence process for new investment to getting basically requires doing like quantitative analysis qualitative analysis going through like, you know, fun documents going through like investment memorandums, like all kinds of things looking at exposure over time correlations, like anything quantitative, you can imagine we do and then the the the most important part is like what fit does it have in your portfolio? Like are you adding more of the same and then applies to anyone in investment? Anyone that wants to buy something you got to think about like what's the role of these in your portfolio? Because if you're is adding more of the same type of exposure then you really missing out on the only free lunch in finance, which is diversification. So we looked at things like that. Like what can we add to complement the portfolio to enhance the risk return expectations in a The you know right now the US market has been difficult in general for a lot of people or institutions. So we just basically thought you know, we're going to try a different things. So, you know, we started looking at quantitative method, right? So the systematic investing in people that buy do factors and you know, all kinds of all kinds of like, you know, algorithm based so we have been just roughly evaluating that space and getting a feel for like what he has to offer. How can you enhance our current roster? Thank you. So, you know, it's very interesting in like always like a is like a feedback loop. So you always getting feedback from the market and like looking to want to add what to like, you know on the marching what to trim and you guys have any interest in investing in my local property management company. Hey, you know, we have a very large real estate book. We do have a lot of illiquidity. I think 40 percent roughly 40% of our book it's in Illiquid Investments private Equity primarily but yeah real estate is a huge in. Yeah, we its malls like Europe. I think we have some time. I'm not sure because that's not my expertise. But yeah, they're huge deals. But yeah, that's a question never knows the 80s. But yeah, that's that's kind of some of the things that I'm working on right now. That's very cool and so big picture like what's the what's the goal for for you with you know with what you're doing? Oh, well, you know I think I'll learn earlier one. You want to said outrageous goals? That's step number one. So I you know for me is like, you know, there's I try to like, you know right now enjoying definitely enjoying what I'm doing and so I'm not putting any like, you know, this is the limit and Like There's No Limit. I think, you know, obviously that limit in their organizations like I'll be the CEO and CIO and like the one like managing all the asset classes, right? So for me, that's like yeah, obviously you gotta really angry. Hi, but I think even more bigger picture like I do enjoy knowing that what I'm doing has an impact and like, you know you Timco we actually just recently changed like, you know, what we call our mission is like we say we stood be great which means growth endowments for Research Foundation education and about advancement of the world treatment in inpatient treatment. So that's our mission. I'm like man like to work for towards something that has that type of impacts great and then You know, we want to eradicate poverty through education. So as long as like I'm getting those three things out of me, you know, which I feel like I my opinion matters in the things. I do have an impact on the decision making process and you also have like, you know complexity in what you do and right now I'm still being so Challenge and you also have that connection between like, you know working rework. I think you know, it's a great proposition for me. But yeah, I mean my parents were intrapreneur my grandpa's open or I always feel like Perhaps down the road. I could be something I'll Venture into so yeah, but I think right now I just want to become BD best Institutional Investor. I can be and put no limits to do anything. I can learn. Yeah, that's awesome. And so in the mission for you Timco, it's the T stands for you know treatment of patients. So is that primarily for patients that are medically it's primarily can. Answer, okay cancer research. So MD Anderson is one of the institutions that we actually support. Okay, and they're obviously one of the most well-known cancer research places in the world, right? So for us like that's a huge part of our mission be able to you know, contribute towards something that I hope. You know lifetime we can secure right? Yeah. So many people die every year of cancer and like to know that you even if it was through investment that you contributed towards that to me is like me. If I can tell my song like yeah, like the work the reason I worked late or like a lot of times I miss whatever you were doing because you can't want to happen like you think that's going to happen or people think that know if you might miss important things but knowing that the other day like you're contributing to something greater than yourself right? I think that that matters are they like, you know, when you're all and looking back so yeah, I think that's huge. I mean at the end of the day like, you know, we were talking about Financial Freedom and you know, No money. I mean it doesn't matter if you're not doing anything good with it, right if you're not helping benefit somebody and you know, I don't see a better cause than the you know, yeah, right. I got over to MD Anderson. So that's awesome and on behalf of you know, a lot of people, you know, thank you. That's awesome. Very cool. Thanks, man. Well, hey, man, we appreciate it. No, it's Friday. So probably got stuff to do. This is great. I think I know things I'm glad we were able to make it happen. I know we could postpone it but you know, it's it was it's a pleasure to be here. Yeah. Yeah. We really enjoyed talking to you and you know, you were a joy to talk to you and I hope that this friendship continues for sure. Awesome. Yeah, and if anyone's gonna comment comment on Whose can run longer enter your Andres well have to run a marathon together with the best time. I'm all right. We'll see you guys later.
Andres Delgado is potentially the most interesting man in the world. From sports to music he probably has experience in anything you could think of. A graduate from Texas State University where he received a Bachelor of Business Administration. Andres left straight from school to go work for Goldman Sachs as a Finance Associate and is now a Senior Investment Analyst for The University of Texas and Texas A&M Investment Management Group. In this episode you will hear about his journey his work and the investors mindset you have to have if you want to be successful. Find out more about Andres here: https://www.linkedin.com/in/andres-delgado-cfa-frm-a37417139  https://www.instagram.com/andre_523/  We are proud to be sponsored by Stone Oak Property Management. Stone Oak is a residential property management company based out of central Texas. We serve real estate investors by providing an exceptional living experience for the residents that live in our properties. We provide rental property management & portfolio growth in order to create generational wealth and financial freedom for everyone we work with. 