Sam Zell - The Grave Dancer on Private REITs, the Macro Landscape, & Timeless Investing Wisdom | #478
Today’s guest is the Grave Dancer himself, Sam Zell, founder and chairman of Equity Group Investments, a private investment firm he founded more than 50 years ago. Today’s episode starts off with Sam’s take on the withdrawal limits for private REITs over the past few months from the lens of his quote, “liquidity equals value.” He shares his view on different areas of the real estate market, why he’s been a net seller for 7+ years, and some lessons from being a constant deal maker during his career. As we wind down, Sam shares some advice for President Biden on how to help the economy and how to encourage more entrepreneurship in the US, and I promise you won’t want to miss his most memorable investment.
Key Points
- Sam Zell emphasizes the importance of understanding and accepting the illiquidity of certain investments like non-traded REITs, noting that many investors may not fully grasp the implications of their lack of liquidity.
- Zell has been a net seller in the real estate market for nearly 8 years, driven by his belief that the prices being paid for real estate assets have exceeded their reasonable value, particularly in sectors like office buildings and retail.
- In his investment philosophy, Zell prioritizes assessing the downside risk and competition for any potential investment, focusing on barriers to entry and the ability to maintain value even in competitive markets.
Resources: The Great Depression: A Diary
Chapters
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| 9:17 | |
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| 19:30 | |
| 24:32 | |
| 34:37 | |
| 37:09 | |
| 47:14 | |
| 52:18 |
Transcript
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