1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Canadian Value
CanadianValue
Articles (4624) 

Real Estate Guru Sam Zell Discusses the Outlook for the American Economy and His Recent Mega-Deal

December 06, 2012 | About:

Zell has his finger on the pulse of the commercial and residential real estate markets and therefore has some good insight on how the American economy is trending. Some of his comments from the interview with Bloomberg include:

- Having just completed the $6.5 billion deal for Archstone (as CEO of Equity Group Investments) Zell explains that the attractiveness of Archstone was that it held assets that have a “high barrier to entry.” What he means is that it is easy to put up a new residential apartment building in Atlanta, but it is not so easy to put up a new highrise in New York (which are the type of assets he has acquired).

- He thinks the American economy is the strongest economy in the world, but that is like being the tallest person at a pigmy gathering.

- The housing market is recovering more slowly than conventional wisdom thinks, but is recovering.

- Zell agrees that the housing market will help provide new jobs (agrees with Warren Buffett), but is concerned that job losses elsewhere will offset much of this benefit (i.e. Citigroup just cut 11,000 jobs).



About the author:

CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 3.7/5 (6 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


MSBResidential 1 Year 1 Yr
mtaylor40GRAHAM3
Jwalker89Earnings Yield
pwhite444Margin of safety
pwhite444equity to asset
pbarker46EV//EBITDA
yasarkhanYasar's Net Net
rael2222base lavoro 4
rael2222base di lavoro 3
rael2222BASE DI LAVORO 2
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK