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
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:


Rating: 3.7/5 (6 votes)


Please leave your comment:

More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners

PabloNVOUndervalued (FCF DCF)
melblannHigh Quality
james scarrJames
worldmetalsHow to Find Good Dividend Stoc
Roger9860ubnt peers
Bogdan BednarskiShares Buyback W1 2007
Bogdan BednarskiShares Buyback W1 2006
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)