Keys to success:
-Reliable Partners
-Reputation is your biggest asset
-Fundamentals of Business
- Operate on the condition of no surprises.
- Everyday that you are not selling an asset in your portfolio, you are choosing to buy it.
- Ensure managements interests are aligned with shareholders.
- Look for good companies with bad balance sheets.
- Nothing should stand between a company its fiduciary responsibilities to shareholders.
- Look for opportunities in markets with pent-up demand.
7. The definition of a partner is someone who shares the same level of risk as you.
8. Liquidity = Value.
9. Sentimentality about an investment leads to lack of discipline.
10. Take meaningful positions so you can influence your own destiny.
11. When everyone is going right, go left.
12. Understand the downside.
13. It all comes down to
14. Econ 101- Supply & Demand.
When getting into a new business position, determine if it is cheaper to build new or to acquire existing companies or properties. Also, look at local new development rate. Is the industry or area becoming too saturated?
Compare inflation rate to interest rate. If inflation looks to continue rising at a high rate, the interest rate you are looking to gain, or pay, must be relative.
People upgrade to nicer rental units when rental prices are low.
Important factors to consider:
- Supply & Demand
- Barriers to entry
- Tax Considerations
Look for Asset Intensive Investment Products.
DEBT IS GOOD!
Look for synergies. Look for companies that can use a synergistic alliance.
Always consider the Opportunity Cost.
Seeing opportunities is one thing, knowing how to take advantage of them is another.
Business needs to be able to scale to be worth it so you can liquidate eventually and realize a profit.
Be the lead dog. Otherwise the scenery never changes.
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