In 1969, Sam Zell enjoyed a lucrative deal in Reno with 100% occupancy, yielding a 19% cash-on-cash return. His broker friend approached him about working for Jay Pritzker, a prominent entrepreneur. Sam opted to propose a partnership instead. This led to a pivotal relationship, where Pritzker became Sam’s mentor. They tackled ambitious projects, including a problematic development in Lake Tahoe. This revealed the complexities and risks of such ventures. Sam had considered developing properties

In 1969, Sam Zell enjoyed a lucrative deal in Reno with 100% occupancy, yielding a 19% cash-on-cash return. His broker friend approached him about working for Jay Pritzker, a prominent entrepreneur. Sam opted to propose a partnership instead. This led to a pivotal relationship, where Pritzker became Sam’s mentor. They tackled ambitious projects, including a problematic development in Lake Tahoe. This revealed the complexities and risks of such ventures. Sam had considered developing properties

“I'm sick and tired of listening to everyone talk about and commiserate over the end of newspapers. They ain’t ended and they’re not going to end. I think they have a great future.” – Sam Zell

“I'm sick and tired of listening to everyone talk about and commiserate over the end of newspapers. They ain’t ended and they’re not going to end. I think they have a great future.” – Sam Zell

What do wealthy people do that middle class people fail to do? Two men can live in the same neighborhood, yet one becomes rich and the other doesn’t. Both men are of average intelligence. Both men have the same opportunities. Yet one man lives well, without lack, and the other struggles to make ends meet. The middle class man is in the habit of never getting ahead of his bills. The middle class man seems to have the same information, but does he? For example, there’s a term in aviation called...

What do wealthy people do that middle class people fail to do? Two men can live in the same neighborhood, yet one becomes rich and the other doesn’t. Both men are of average intelligence. Both men have the same opportunities. Yet one man lives well, without lack, and the other struggles to make ends meet. The middle class man is in the habit of never getting ahead of his bills. The middle class man seems to have the same information, but does he? For example, there’s a term in aviation called...

“Make no little plans. They have no magic to stir mens’ blood.” – Daniel Hudson Burnham (1846-1912). One of America’s most influential architects and urban planners. In the early 1990s, the commercial real estate market experienced a severe downturn. The collapse of the savings and loan industry had something to do with it. This led to plummeting property values and substantial investor losses. Sam Zell and Merrill Lynch capitalized on this crisis. They acquired discounted assets, raising $2.1

“Make no little plans. They have no magic to stir mens’ blood.” – Daniel Hudson Burnham (1846-1912). One of America’s most influential architects and urban planners. In the early 1990s, the commercial real estate market experienced a severe downturn. The collapse of the savings and loan industry had something to do with it. This led to plummeting property values and substantial investor losses. Sam Zell and Merrill Lynch capitalized on this crisis. They acquired discounted assets, raising $2.1

“A meritocracy gives you the freedom to be yourself by eliminating superficial markers, so you are measured only by what you produce. In essence, it is an equalizer that focuses everybody on what’s important, so you have the opportunity to reveal your best. Once you’ve worked in a true meritocracy, it’s very hard to settle for anything else.” – Sam Zell

“A meritocracy gives you the freedom to be yourself by eliminating superficial markers, so you are measured only by what you produce. In essence, it is an equalizer that focuses everybody on what’s important, so you have the opportunity to reveal your best. Once you’ve worked in a true meritocracy, it’s very hard to settle for anything else.” – Sam Zell

“We suffer from knowing the numbers.” – Sam ZellSam Zell transformed the Real Estate Investment Trust (REIT) sector. A REIT is a company that does three things. Owns, operates, or finances income-producing real estate. It allows investors to buy shares and invest in real estate. And they don’t purchase properties. The REIT must distribute most of its income to shareholders. He pioneered the public listing of REITs. So investors could access capital markets instead of relying on mortgage finan...

“We suffer from knowing the numbers.” – Sam ZellSam Zell transformed the Real Estate Investment Trust (REIT) sector. A REIT is a company that does three things. Owns, operates, or finances income-producing real estate. It allows investors to buy shares and invest in real estate. And they don’t purchase properties. The REIT must distribute most of its income to shareholders. He pioneered the public listing of REITs. So investors could access capital markets instead of relying on mortgage finan...

“Risk is the ultimate differentiator.” – Sam ZellSam Zell owned Equity Office Properties Trust (EOP). He believed EOP was too large to sell. Unsolicited offers began in 2005. A bidding war for EOP changed his mind. He prioritized his shareholders’ returns. The Blackstone Group finalized a record $39 billion acquisition of EOP in 2007. It was right before the 2008 financial crisis. Zell always assessed downside risk first. His experience with Carter Hawley Hale Stores, Inc. exemplified this. He

“Risk is the ultimate differentiator.” – Sam ZellSam Zell owned Equity Office Properties Trust (EOP). He believed EOP was too large to sell. Unsolicited offers began in 2005. A bidding war for EOP changed his mind. He prioritized his shareholders’ returns. The Blackstone Group finalized a record $39 billion acquisition of EOP in 2007. It was right before the 2008 financial crisis. Zell always assessed downside risk first. His experience with Carter Hawley Hale Stores, Inc. exemplified this. He

Imagine becoming a billionaire in your mid-thirties. You accomplished the olympic gold medal of business. You did it without going to Harvard, Stanford or Yale. You never slept under your desk. You didn’t need to work 112 hours a week or raise capital from VCs. Your motivation? The cashier at your local coffee shop says their payment system declined your debit card. That gut wrenching feeling of shame. You hate not having enough money. But wait a minute. You’re a billionaire at 35 years old an

Imagine becoming a billionaire in your mid-thirties. You accomplished the olympic gold medal of business. You did it without going to Harvard, Stanford or Yale. You never slept under your desk. You didn’t need to work 112 hours a week or raise capital from VCs. Your motivation? The cashier at your local coffee shop says their payment system declined your debit card. That gut wrenching feeling of shame. You hate not having enough money. But wait a minute. You’re a billionaire at 35 years old an

In 1969, Sam Zell enjoyed a lucrative deal in Reno with 100% occupancy, yielding a 19% cash-on-cash return. His broker friend approached him about working for Jay Pritzker, a prominent entrepreneur. Sam opted to propose a partnership instead. This led to a pivotal relationship, where Pritzker became Sam’s mentor. They tackled ambitious projects, including a problematic development in Lake Tahoe. This revealed the complexities and risks of such ventures. Sam had considered developing properties,

In 1969, Sam Zell enjoyed a lucrative deal in Reno with 100% occupancy, yielding a 19% cash-on-cash return. His broker friend approached him about working for Jay Pritzker, a prominent entrepreneur. Sam opted to propose a partnership instead. This led to a pivotal relationship, where Pritzker became Sam’s mentor. They tackled ambitious projects, including a problematic development in Lake Tahoe. This revealed the complexities and risks of such ventures. Sam had considered developing properties,

The US economy under President Jimmy Carter was rough. Can you say “stagflation”? It was a great era for opportunistic investors. Sam Zell capitalized on distressed companies. Zell identified companies with large Net Operating Losses (NOLs) as undervalued assets. The Economic Recovery Tax Act of 1981 extended NOL carry-forwards. Zell acquired struggling firms like Great American Mortgage and Investment (GAMI). Then he acquired Itel Corporation. Zell turned GAMI into a diversified holding com

The US economy under President Jimmy Carter was rough. Can you say “stagflation”? It was a great era for opportunistic investors. Sam Zell capitalized on distressed companies. Zell identified companies with large Net Operating Losses (NOLs) as undervalued assets. The Economic Recovery Tax Act of 1981 extended NOL carry-forwards. Zell acquired struggling firms like Great American Mortgage and Investment (GAMI). Then he acquired Itel Corporation. Zell turned GAMI into a diversified holding com