Andrew Henderson on nomad capitalism and emerging markets

0:21capitalist is yeah so Nomad capitalist is guided by what I call the five magic words go where you're treated best my father told me this when I was a preteen it changed my life because he had the foresight to tell me you don't just stay where you're from you don't to stay here for the social obligations like your family you should go where you're treated best if you're in business

0:40probably by the year 2020 that won't be the United States or North America and so my vision for Nomad capitalist is successful people have options it's a competitive marketplace for so many things these days you can get the best deal on everything I mean the margins on things like televisions are so low restaurants there's a million of them you have so many choices be it we don't

1:02consider the country that we live in the country we pay taxes to the country where the banks are keeping our money that come true the laws that were subject to of our crypto Investor you know this our citizenship you know all these things for most people are dictated by one country they can literally shut you down in so many ways tomorrow and I believe in having options

1:20second Passport second residences you know investments around the world in just diversification that's great and you do talk a lot about emerging markets and frontier markets you know can you talk a little bit about why you see this as a good potential for investment and maybe give some specific examples well a couple reasons number one they're often

1:40not correlated frontier markets and so you can see markets like Cambodia that have grown tremendously you haven't seen any dips in 25 plus years you've had Asian financial crisis y2k global financial crisis and just you know continued chugging along I think there's a lot of opportunity these markets if you're knowing what to doing and know what to do obviously they can be much

2:00more opaque in the developed market but if you get in there and understand what it is that you're looking for you can get much higher yields and I see people in Australia Sydney places like that Los Angeles making 2 or 3% yields they have high tax they have lots of regulations very Pro Lena are very Pro tenant and you know just lots of problems oh and by the

2:20way the markets go down 20% every once in a while and so I think that you can avoid all those issues by being in emerging markets that are much more pro-business that want people to come there the Georgia's the Malaysia's places I think Central Asia could be opening up Cambodia has been a good one and probably a few others as well really interesting and for example with

2:43Cambodia or Georgia do you need to be a citizen to be able to invest in those areas so what I love about Georgia and markets like that I think Armenia next door is perhaps starting to follow some of their playbook is it's very open you can buy a property cost 15 bucks you can transfer to anyone in the matter of about three days and doesn't matter if

3:01you're a citizen or resident you can buy it even without being there in Cambodia as with most Asian countries and with some African countries as well which is why I often don't talk about Africa but you are restricted so you can buy condos you can buy in some cases what are called shop house apartments but you can't in most places in Asia outside of

3:20Malaysia where I am by land my you know villas things like that so you are more restricted in some of these places but in the Eastern European and Latin American countries generally speaking it's very wide open mmm-hmm interesting and you also have the potential to you know for tax reasons and you know for personal benefit to invest and through the investment you can gain citizenships

3:44you've studied a little bit into that right well this is although a lot of what we do at nomad capitalists right and there's different ways to get a second citizenship I believe it's a great diversification tool make sure that no one country owns you do that with two citizenships you can go out and make a donation I've done that around a couple times two different islands and

4:03they'll give you a citizenship in months but you can also do is you can be naturalized sometimes more quickly they don't no one else by investing in things that they want you to invest in oftentimes that's real estate sometimes it's starting a business there are a couple countries where they prioritized you know crypto maybe that's much for residents in citizenship but yeah if you

4:21buy a property you could get like in the case of Turkey quarter million dollars in you get citizenship in six months other countries numeral to mention you can get residents in three four five six eight years later go back and get your citizenship so it's kind of like what I call a free second Passport if you can make a good investment that's profitable

4:42you pay a couple legal fees out of the rent and then the passport comes with it mm-hmm-hmm and you mentioned crypto there are a lot of countries that are starting to look for you know favorable crypto tax laws that are being you know enacted do you see an in crypto is a very early market and it's a very emerging right now do you see that as diverse a proper diversification and

5:05investment tool as well yeah we have a lot of folks who do cryptocurrency and from me I think diversification both geographically in different asset classes is important I'm not putting a hundred percent of my money in the crypto we have a guy recently has about twenty million dollars twenty five percent of its in crypto and it's gone from basically nothing right so he's

5:24been a good trader iniquities he's done a couple good real estate deals and he's done very well crypto currency so I look at it similar to gold or silver I think the biggest challenge you can have in any market is when you are so confident that everyone is going to come along and agree with you and I've seen that my entire life since I was 12 years old you

5:45know libertarian politics you know most people don't want to be libertarians most people want to be led it wouldn't be told what to do and so I think you know having balanced portfolio to make sure that no one thing is ever overweight I think is very important but I think crypto is really a very powerful thing and it's a good thing to have in your portfolio mm-hm

6:04and do you see using crypto currencies actually for payments you know Bitcoin can be considered a store of value to some but for others they see it as a way to transact globally and being a nomad and moving across borders having a currency that is global rather than switching between foreign exchange seems favorable do you experience that as a nomad well I mean I think that you know

6:28the I think sometimes we're so focused on I know how do I avoid 50 basis points in fees or a $5 ATM charge that you want to go and deal with something that has you know great volatility it right people learn different crypto currencies including all coins I mean some of these things are up down 10% in one day even in you know this recent chaos I don't think I've seen

6:50very many currencies that were down you know 10% 20% in a day and so you know for me I think my perspective would be yes you want easy for payments if that's what you're what you're doing that's fine but if the goal is you know how do I make my life as a nomad easier you know you have a good internet on thank you whole different currencies you hedge

7:09in that way the reality is most people are used to dealing in via currency and we can go around and we can call everybody cheap and was an I have great sympathy for the cause I also realize we live in a world where most people don't really know what's going on and you know if you're gonna be living this lifestyle they don't know much about crypto and Montenegro by and

7:31large and so I don't know I think I would be holding the crypto and that would be you know just using that as a long-term position and not spending it and with the money coming in B's friend yeah well I guess because we are so early it's hard to tell in terms of mainstream adoption you know can you go to each country that you're going to and will you're gonna you may have to

7:56incur those extra fees if you know they don't accept Bitcoin but maybe 10 years down the road then it will be more widespread do you foresee that you know coming quicker than then sooner more widespread I you know it's always hard listen people ask them you know is everyone gonna be a nomad one day no they don't want to be and you can look at that with people who are on my team

8:17for example they like where they're from they like their city they like being around their family they like their boyfriend right they don't want to go anywhere maybe they want to travel a couple weeks a year right I don't necessarily imagine I don't have the hood spot to say that everyone is going to want to live my life my life is for think a limited number of people who are

8:36adventurous on the digital Nomad side on the Nomad capitalist signs you know wealthy people 678 figure entrepreneurs and investors it's the adventure as well it's better opportunities better lifestyle less nonsense in your lives and of course lower taxes I think the same thing applies to crypto yes more right up in certain places you'll see it be more widespread but to say that every

8:56country on Earth has been adopted listen if you if it's very important to you that you can totally transact encrypted that I think I would have those kind of countries on my agenda you're gonna be crossing a number of countries off off your list into the countries that are I think in there and variably more crypto friendly right now may not be the places

9:12where you want to go and spend your time yeah I guess because a lot of these people in these countries that have hyperinflation with their currencies are turning to crypto you know Venezuela that the hyperinflation is crazy and although everyone's using crypto it may not be the nicest place to go and visit or potentially invest in or Belarus or something I mean I kind of

9:36like Belarus but I'm mostly gonna want to live there people talk about you know George George and they've been very good but you know that a place where you want to go in the lane full time it's a bit of a culture shock for that and you know I hate to say it but you know when they're also doing to prote to combat hyperinflation a lot of places US dollars right so I do hear you and I'm

9:57and I'm on the side of the cause but I also like to be able I like to make sure we're being pragmatic and we're not allowing the movement to you know dictate I'm curious on your take about central bank digital currencies you know it seems like China and America may be rushing to move their currencies digitally or on the blockchain as well as opposed to using a decentralized

10:22currency that you know isn't controlled by a central government you know do you foresee that as practical for nomads to be using central bank digital currencies when they do come defeat the point right I again here's my concern right and I know there's people in the crypto community who are too pragmatic for them you know look what happened during the

10:48recent months the US government came out and said put your money in an fdic-insured Bank say and you and I can look at it and say or I'll speak for myself you can say oh that's a little ridiculous okay I mean this FDIC fund has like half a penny for every dollar in deposits and like you trust the US government with your money look it'll get the governments of the

11:08building facts but most people believe it and so my fear is whenever you have the you know the quoting quote a more reasonable alternative put out by governments people may start to say oh let your the Bitcoin thing I heard about maybe this government version is better I don't know but I do feel like you know a lot of people are scared about something that's new adoption

11:29often takes a long time you can see the internet obviously adoption and take that long the course of history but I do fear that people like the government alternative mmhmm yeah it's really interesting this isn't does make it good yep yeah will be interesting to see how that plays out and I think that the Facebook Libre had a catalyst in you know interest of these kinds of

11:50currencies for people that weren't already involved in the industry so you know one other thing that you also focus on is luxury nomads you know some people think of nomads as people that have no possessions and they're traveling around almost like a backpacker but you talk about talking with a lot of entrepreneurs that have huge salaries and you know they don't they're

12:10nomads but they actually live a very luxurious life can you talk a little bit about you know what cities are best for luxury nomads or a little bit of both you know around that sure I mean we've had everyone from you know half a million dollars a year to billions of dollars in net worth billion dollar company founders Dubai is one that I think is popular because you have the

12:31blend of low tax you have excellent infrastructure you know shopping get anything you want great service you know Singapore is a good one but I also think that you know we're entering an era where you know the country-club era has come to an end where there's like you're kind of reinventing yourself as a wealthy person I mean Kuala Lumpur for me could I

12:52afford to live in Singapore yes but to me it's a better value people a little a little more kind here that's in their bed in Singapore but they're just super nice here it's just a bit more fun right it's a bit of a lively place to be you know I think you know places like Belgrade and Europe are very interesting because one of the things that I'm trying to do and think a lot of people

13:15are trying to do is they're trying to get away from some of the noise in the Western world about how the rich are evil and everyone's priorities have just shifted and so you know for me moving to Vienna or Auckland which always tops these lists notice how there's never a single city unheard of on these lists put up by US media like there's never a single one

13:35you'll never see Kuala Lumpur and yet you have probably some of the best malls in the world here when guys are telling me hey my wife is kind of concerned I was like Howard look at the pavilion mall in Kuala Lumpur and I'm totally going look I can promise you it's better than the Wichita you know crossings mall and I just think that obviously safety

13:54is an issue I can't leave Mexico City people have an issue with that one but I think you know low tax friendly people easy to do business easy to get in and out those are things I'm looking for and to say that we should go to some you know kind of esteemed London or something there's no value there the point here it is you know don't spend two million dollars

14:13in a house in London to get a basement spend two million dollars and get a mansion yeah very well said and we're running out of time but if the viewers are looking to learn more about being a no matter no matter what's the best way for them to learn more and to reach out well so I wrote this book which is on Amazon's called nomadic apples you can find it in

14:32the Amazon store that's good introduction if you want to distill the thousand videos I've made and 2000 blog post we've written you can also go to Nomad capitalist calm and learn more we're working on a live event right now with Robert Kiyosaki and President Mikheil Saakashvili of Georgia and others but I would say really the first thing to do if you're just new to this

14:53idea of have a bank account somewhere else is get the book yeah great thank you Andrew I will leave the links to those in the description box below for the viewers as well thank you so much for your time it's been a pleasure speaking with you all the best with nomad capitalists and let's follow up in the near future appreciated you