Buffett Applied Real Estate Parable to Stocks: Sitt

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March 6 (Bloomberg) -- Joseph Sitt, founder and CEO at Thor Equities, discusses Warren Buffett’s surprise New York City real estate holding and what makes for a successful land deal on Bloomberg Television’s “In The Loop.”

Properties in new york.

You had no idea that buffett owned this piece of real estate.

It was a complete surprise to me.

It got me all excited.

I went to school at nyu.

You gone into some of those stories?

Yes, and that is a sixpack of beer location.

It definitely brings it all home.

I've spent my entire career as a student of the real estate industry and my number when teacher has been warren buffett.

It's funny how he picked up real estate parables and applied them to stocks and equities, and i've done just the opposite.

Taking his discipline.

Like what?

One of the things they say is time is the friend of a good business and the enemy of a media row core one.

-- of a mediocre one.

If you buy quality assets and hold them for the long haul, you will never regret it.

No matter how high of a price you think you got, if you sold an asset of quality location, almost five years later you will look back with regret.

One of the problems and challenges people have as institutional investors is that they feel that treasure to sell, to trade.

It is a mistake to do so.

As you say, you buy and hold it as long as you can.

We're surprised by the players involved in this, how it all came about with a tip from larry silverstein?

Is that the way you guys operate ? often, it is.

We invest for institutions and we invest for high net worth investors.

Someone will call you and say , here is something.

As they say in latin america countries, you are invited into a deal, so to speak.

But what is behind the net worth investor -- the high net worth investor, it is appreciation.

There is a taxi will pay on the game.

-- a tax you will pay on the game.

It is inefficient to sell.

If you buy it and hold it for the long term, you will never regret it.

And as foreign buffett says, your children and great-grandchildren will thank you.

The biggest thing for you?

Obviously, everyone wants to buy good, quality real estate.

The biggest thing for you come how you know it is -- the biggest thing for you, how you know it is?

Don't focus on the macroeconomics.

Focus on the quality of the earning stream and a likely earning stream.

And the challenge is that you are not being shouted at a price everyday.

If you hold on, you are less tempted to sell it and you just close your eyes will stop the people that did -- close your eyes.

The people that did during the downturn in 2008 are glad.

Hang on.

This text has been automatically generated. It may not be 100% accurate.


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