Sam Zell goes bargain hunting for distressed assets.
“We’ve been buying some stuff that we thought was ridiculously low” said Sam Zell who was once quoted as saying “be a risk-taker. However, define risk on your terms” he said.
But Sam Zell billionaire investor real estate mogul with a net worth $5.1 billion (number 324 on the Forbes billionaire list) is not entirely all in on risk assets.
“We’ve been buying some stuff that we thought was ridiculously low”
While many investors were caught wrong-footed during the coronavirus-driven sell-offs Sam Zell goes bargain hunting for niche stock, albeit in small portions
“But not a lot” said Sam Zell billionaire founder of Equity Group Investments.
Sam Zell goes bargain hunting for a few companies in the energy industry, particularly batteries where his fund has significant investments
The energy index clocked a 30% decline and was one of the worst performing S&P sectors in February’s stock market rout.
Energy stocks are well into bear territory.
The 30% decline in the energy index has clawed energy stocks deep into bear territory, defined as a drop of at least 20% from its peak stock price.
“The energy index clocked a 30% decline and was one of the worst performing S&P sectors in February’s stock market rout”
Sam Zell goes bargain hunting for energy stocks but he remained tight-lipped about what energy stocks he was buying in his latest business interview.
“We think the energy space is cheap … and what helps is we were not in the energy space before” said Sam Zell.
In the current climate, Sam Zell said he’s buying energy stocks and debt as well as land, focusing on existing production rather than drilling.
“So much of our economy is built on mobility” – Sam Zell
Sam Zell goes bargain hunting but he remains cautiously optimistic
“So much of our economy is built on mobility” said Sam Zell. But the coronavirus and the hysterical reaction to it culminating in the great lock-down have terrorized people into fear, isolation, and thrift. People are frightened to travel, go to hotels, dine in public spaces, and spend.
“I think we are all in an unchartered territory we are missing the word uncertainty” said Sam Zell.
Regarding whether Sam Zell goes bargain hunting in real estate the billionaire investor said,
“People ask me about what market am I buying in real estate I don’t buy in the market I buy in deals”.
Sam Zell’s investment plays in January were erring on the side of haven assets namely gold.
“For the first time in my life, I bought gold because it is a good hedge” said Sam Zell.
So Sam Zell goes bargain hunting but he remains cautious because without the facts price discovery remains undetermined
“Price discovery is based on facts and we don’t know the facts yet to price deals” said Sam Zell.
“All this is putting big investments on hold” he said. “You are not seeing conclusion you are seeing caution…that is why the stock market is behaving like a yoyo” added Sam Zell.