I’m a HUGE fan of investing in commercial real estate, for various reasons:
- Predictability of value and cashflows
- Low beta compared to the stock market
- Low liquidity is a minor issue for me (money management is something you do BEFORE investing, not after)
- Perhaps most importantly, smarter people than me have said that real estate is one of the very few industries where mediocre people can succeed 🙂
Continue reading “The do’s and don’ts of investing in commercial real estate”
Right off the bat: I’m a firm believer and committed investor in vital infrastructure. Railroads, ports, pipelines, wireless towers, gas stations, airports, roads, electricity transmission lines and stations, you name it. For clarity – while the land that carries it, is not technically infrastructure itself, usually they’re bound together by decades-long leases (or short term leases that give more power to the landowner) that effectively make the ground underneath a senior tranche in the asset. More on that below. The majority of my portfolio is invested in land with infrastructure, but my appetite is insatiable.
Continue reading “Why investing in infrastructure (and the land beneath it) is a good idea”
A little bit insight into what kind of asset classes i like and don’t like. Things to keep in mind:
- Safety of cash flows is paramount.
- Capital preservation is more important than capital growth.
- This is not other people’s money so messing up and moving on isn’t really an option. You have to get more right than wrong, constantly.
- My investment horizon is years to decades. The longer, the better. Liquidity for capital deployed is relatively unimportant, but money management is not.
- Something that doesn’t provide a relatively predictable cashflow while maintaining it’s value, is not really a possible investment instrument. At best, it’s a hedging instrument. At worst, it’s a zero sum game with me as the lemur in a room with 700-pound gorillas who are smarter than me.
- I operate in – and exclusively invest in – safe regions, where bureaucratic, tribal and warlord relations don’t affect property rights.
Continue reading “A bit about my investment preferences”