Margin of Safety » Equity Group Investments http://amarginofsafety.com "...to distill the secret of sound investment into three words..." Fri, 26 Jun 2020 18:44:00 +0000 en hourly 1 http://wordpress.org/?v=3.2 Sam Zell Expects a Market Correction (Video) http://amarginofsafety.com/2015/04/01/sam-zell-expects-a-market-correction-video/?utm_source=rss&utm_medium=rss&utm_campaign=sam-zell-expects-a-market-correction-video http://amarginofsafety.com/2015/04/01/sam-zell-expects-a-market-correction-video/#comments Wed, 01 Apr 2015 18:54:54 +0000 Ray Galkowski, CFA http://amarginofsafety.com/?p=1877 Continue reading →]]> Sam Zell was on Squawk Box this morning and warned of a correction. He repeated many of the themes that have been written here over the past few years, including the theme of Federal Reserve excesses leading to rising asset prices. It prompted me to go to Zell’s website, which listed quotes outlining his philosophy. I agreed with almost all of the quotes, but I was especially struck by one, because years ago I had written the same thing on the whiteboard at my office (paraphrased):

“Every day you’re not selling an asset that’s in your portfolio, you’re choosing to buy it.”

The idea is that managers have to look at everything fresh every day in light of all new information, so that holding a position is no different from buying it, especially if there are no tax implications for selling (e.g. positions in retirement accounts, endowments, etc.). That perspective helps prevent managers from falling in love with their positions. It’s akin to Sir Arthur Quiller-Couch’s admonition for writers to “Murder your darlings.”

Share

]]> http://amarginofsafety.com/2015/04/01/sam-zell-expects-a-market-correction-video/feed/ 2