Episode
#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
2:06:43
Published: Thu Jan 23 2020
Description
Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing | Brought to you by FreshBooks and Brave“If I can't run it, then I don't want to own it.” — Sam ZellWelcome to another episode of The Tim Ferriss Show, where it is my job to sit down with world-class performers of all different types to tease out the habits, routines, favorite books, and so on that you can apply and test in your own life. This time, we have a slightly different episode. I will not be the one doing the deconstructing. Instead, we have a takeover by my very good friend, Peter Attia.As longtime listeners of the podcast know, Dr. Peter Attia (@PeterAttiaMD) is a former ultra-endurance athlete, a compulsive self-experimenter, and one of the most fascinating human beings I know. He is also one of my go-to doctors for anything related to performance or longevity. Peter also hosts The Drive, a weekly, ultra-deep-dive podcast focusing on maximizing health, longevity, critical thinking, and a few other things. Subscribe on Apple Podcasts, Spotify, or wherever you listen to podcasts.In this episode, we have Peter interviewing Sam Zell, a legendary dealmaker and investor. Sam is the Chairman of Equity Group Investments, and he was recognized by Forbes as one of the "100 Greatest Living Business Minds" in 2017. He holds a place on New York Stock Exchange's "Wall of Innovators" for his role in building the $1 trillion REIT industry. Sam is also the author of Am I Being Too Subtle?: Straight Talk From a Business Rebel. This is one not to miss. Please enjoy!This episode is also brought to you by FreshBooks. I’ve been talking about FreshBooks — an all-in-one invoicing+payments+accounting solution — for years now. Many entrepreneurs, as well as the contractors and freelancers that I work with, use it all the time.FreshBooks makes it super easy to track things like expenses, project time, and client info, and then merge it all into great-looking invoices. FreshBooks can save users up to 200 hours a year on accounting and bookkeeping tasks. Right now FreshBooks is offering my listeners a free 30-day trial, and no credit card is required. Go to FreshBooks.com/tim and enter “Tim Ferriss” in the “How did you hear about us?” section!This episode of The Tim Ferriss Show is also brought to you by Brave, the next-generation Web browser. Brave was built by a team of privacy-focused, performance-oriented pioneers of the Web at the direction of Brendan Eich (co-founder of Mozilla Firefox and creator of JavaScript) and Brian Bondy. Brave now has more than 10 million monthly active users — including me.Brave gives you unmatched speed, security, and privacy. Whereas other browsers suck up your data — profiling and tracking you across the Web and using that information to manipulate your decisions — Brave operates up to six times faster by blocking ads and website trackers, preserving your anonymity and protecting you from this surveillance economy. Brave also includes options such as Private Window with Tor for those seeking advanced privacy and safety. Intuitive and easy to use, Brave allows you to import bookmarks from other browsers with one click, and all your favorite Chrome extensions are available with Brave. Listeners of The Tim Ferriss Show can easily upgrade their browser for free right now by going to Brave.com/Tim.***If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It takes less than 60 seconds, and it really makes a difference in helping to convince hard-to-get guests.For show notes and past guests, please visit tim.blog/podcast.Sign up for Tim’s email newsletter (“5-Bullet Friday”) at tim.blog/friday.For transcripts of episodes, go to tim.blog/transcripts.Interested in sponsoring the podcast? Please fill out the form at tim.blog/sponsor.Discover Tim’s books: tim.blog/books.Follow Tim:Twitter: twitter.com/tferriss Instagram: instagram.com/timferrissFacebook: facebook.com/timferriss YouTube: youtube.com/timferrissPast guests on The Tim Ferriss Show include Jerry Seinfeld, Hugh Jackman, Dr. Jane Goodall, LeBron James, Kevin Hart, Doris Kearns Goodwin, Jamie Foxx, Matthew McConaughey, Esther Perel, Elizabeth Gilbert, Terry Crews, Sia, Yuval Noah Harari, Malcolm Gladwell, Madeleine Albright, Cheryl Strayed, Jim Collins, Mary Karr, Maria Popova, Sam Harris, Michael Phelps, Bob Iger, Edward Norton, Arnold Schwarzenegger, Neil Strauss, Ken Burns, Maria Sharapova, Marc Andreessen, Neil Gaiman, Neil de Grasse Tyson, Jocko Willink, Daniel Ek, Kelly Slater, Dr. Peter Attia, Seth Godin, Howard Marks, Dr. Brené Brown, Eric Schmidt, Michael Lewis, Joe Gebbia, Michael Pollan, Dr. Jordan Peterson, Vince Vaughn, Brian Koppelman, Ramit Sethi, Dax Shepard, Tony Robbins, Jim Dethmer, Dan Harris, Ray Dalio, Naval Ravikant, Vitalik Buterin, Elizabeth Lesser, Amanda Palmer, Katie Haun, Sir Richard Branson, Chuck Palahniuk, Arianna Huffington, Reid Hoffman, Bill Burr, Whitney Cummings, Rick Rubin, Dr. Vivek Murthy, Darren Aronofsky, and many more. 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Chapters
Freshbooks is an accounting software that makes invoicing and bookkeeping tasks easy for entrepreneurs and freelancers.
00:00 - 02:04 (02:04)
Summary
Freshbooks is an accounting software that makes invoicing and bookkeeping tasks easy for entrepreneurs and freelancers. With plans starting at just $15 per month, users can save up to 200 hours per year and grow their business with this all-in-one solution.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Peter Attia interviews Samuel Zell, a renowned entrepreneur and investor, on a variety of topics ranging from Zell's upbringing and early businesses to his ability to assimilate information and predict market crashes to his current thoughts on the economy.
02:04 - 13:42 (11:37)
Summary
Peter Attia interviews Samuel Zell, a renowned entrepreneur and investor, on a variety of topics ranging from Zell's upbringing and early businesses to his ability to assimilate information and predict market crashes to his current thoughts on the economy. This in-depth interview provides insights into one of the greatest business minds of our time.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Ray Dalio discusses in detail the story of how his parents, who were Polish Jews, escaped Poland for the United States amidst rising anti-Jewish activities and turmoil in the 1930s.
13:42 - 22:44 (09:02)
Summary
Ray Dalio discusses in detail the story of how his parents, who were Polish Jews, escaped Poland for the United States amidst rising anti-Jewish activities and turmoil in the 1930s.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Paul Tudor Jones speaks about the importance of understanding risk and shares how his father's decision to migrate to the United States taught him the value of optionality and freedom when making decisions.
22:44 - 29:06 (06:21)
Summary
Paul Tudor Jones speaks about the importance of understanding risk and shares how his father's decision to migrate to the United States taught him the value of optionality and freedom when making decisions. He emphasizes the need to be knowledgeable, well-educated, and up-to-date to make better decisions.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
The speaker grew up in an environment that didn't allow him to be a kid and was different from his peers.
29:06 - 38:27 (09:21)
Summary
The speaker grew up in an environment that didn't allow him to be a kid and was different from his peers. His parents had a significant influence on his life, and he realized that he had to be his own person eventually.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
The key criteria for successful investing is the level of competition, as operating in environments with little to no competition provides the edge needed for attractive returns.
38:27 - 48:30 (10:03)
Summary
The key criteria for successful investing is the level of competition, as operating in environments with little to no competition provides the edge needed for attractive returns. This principle guided the early career of a successful real estate investor who invested in small, growth cities such as Ann Arbor, Madison, and Reno.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
The speaker talks about his first investment deal in real estate and how it helped support his family in a way that he never thought possible, ultimately leading to his success in investing in other properties.
48:30 - 53:40 (05:10)
Summary
The speaker talks about his first investment deal in real estate and how it helped support his family in a way that he never thought possible, ultimately leading to his success in investing in other properties.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Learn about the importance of focusing on the downside when it comes to risk management in real estate investing, as explained by billionaire real estate developer and former CEO of Blackstone Group, Stephen Schwarzman.
53:40 - 1:01:05 (07:25)
Summary
Learn about the importance of focusing on the downside when it comes to risk management in real estate investing, as explained by billionaire real estate developer and former CEO of Blackstone Group, Stephen Schwarzman. By identifying the vulnerability or assumption that must be right in order for a deal to succeed, investors can better quantify the risks and increase their chances of success.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
The key to building successful business relationships is to have complementary skill sets and shared values between partners.
1:01:05 - 1:08:59 (07:53)
Summary
The key to building successful business relationships is to have complementary skill sets and shared values between partners. Personal relationships can be important too, but the focus should be on building the business relationship first.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
The Real Estate Investment Trust was created in 1958 to allow smaller investors to own slices of larger real estate projects.
1:08:59 - 1:18:10 (09:11)
Summary
The Real Estate Investment Trust was created in 1958 to allow smaller investors to own slices of larger real estate projects. However, the industry remained relatively small until prospects dwindled, and it became necessary to access public markets with public-ready REITs, which were driven by commissions more than cash flow.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Real estate mogul Sam Zell reflects on his ability to predict the future of the real estate market, including his early warnings of the 1990s recession and his role in the creation of the real estate investment trust industry.
1:18:10 - 1:27:10 (09:00)
Summary
Real estate mogul Sam Zell reflects on his ability to predict the future of the real estate market, including his early warnings of the 1990s recession and his role in the creation of the real estate investment trust industry.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Sam Zell discusses the problems faced by co-working companies like WeWork and Regus, which lack necessary barriers to entry and have become the first to feel the impact when the market softens.
1:27:10 - 1:34:46 (07:36)
Summary
Sam Zell discusses the problems faced by co-working companies like WeWork and Regus, which lack necessary barriers to entry and have become the first to feel the impact when the market softens.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Sam Zell talks about how accessibility has helped him stand out in the business world and why he believes in creating a team of partners instead of rivals.
1:34:46 - 1:41:05 (06:18)
Summary
Sam Zell talks about how accessibility has helped him stand out in the business world and why he believes in creating a team of partners instead of rivals. He also shares the story of how he helped an employee who wanted to go to divinity school while still staying relevant in the business world.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Successful entrepreneurs need to have a curiosity to explore and understand their environment, which involves sifting through volumes of information and remembering only the parts that are relevant to the future.
1:41:05 - 1:47:49 (06:44)
Summary
Successful entrepreneurs need to have a curiosity to explore and understand their environment, which involves sifting through volumes of information and remembering only the parts that are relevant to the future. Being curious is necessary to see problems and solutions in entrepreneurship.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Ray Dalio emphasizes the importance of recognizing limitations in the world we live in, such as a decrease in the affordability of interest rates and an increase in connectedness between countries, particularly with China.
1:47:49 - 1:56:59 (09:09)
Summary
Ray Dalio emphasizes the importance of recognizing limitations in the world we live in, such as a decrease in the affordability of interest rates and an increase in connectedness between countries, particularly with China. While growth is expected to remain positive, he cautions that people should focus on understanding when the "game" started rather than on what "inning" the world is currently in.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Billionaire investor Sam Zell talks about his high-stakes investment strategies, the future of opportunity, and the broader trends shaping the real estate market.
1:56:59 - 2:04:52 (07:53)
Summary
Billionaire investor Sam Zell talks about his high-stakes investment strategies, the future of opportunity, and the broader trends shaping the real estate market. He shares his insights on taking risks, finding opportunities, dealing with fear and ambiguity, and the importance of entrepreneurship and creative thinking.
Episode#407: Sam Zell — Strategies for High-Stakes Investing, Dealmaking, and Grave Dancing
PodcastThe Tim Ferriss Show
Freshbooks is a reliable accounting software that streamlines invoicing, payments, and bookkeeping tasks for entrepreneurs, freelancers, and contractors alike.
2:04:52 - 2:06:32 (01:40)
Summary
Freshbooks is a reliable accounting software that streamlines invoicing, payments, and bookkeeping tasks for entrepreneurs, freelancers, and contractors alike. With plans starting at $15 per month, it's designed to grow with your business and automate time-consuming tasks to save up to 200 hours per year.