Investing in Commercial Real Estate
"If you purchase commercial space as an investment, don't buy buildings that are surrounded by parking lots. The parking lots represent additional potential supply of space, which will limit the building's price appreciation potential. Instead, invest in supply-constrained, high-demand, urban areas. These are more likely to have durable competitive advantages."
Human Capital Can Easily Walk Out the Door
"We don't like businesses that are completely reliant on human capital that can walk out the door. We have no rule against it, but you generally won't find us investing in things like investment banks or consulting firms."
One Perspective Comparing Investing with Marriage
"In the search for companies to acquire, we adopt the same attitude one might find appropriate in looking for a spouse: it pays to be active, interested, and open minded, but it does not pay to be in a hurry."
What is investing all about?
"The biggest lesson from my father was that investing was all about businesses and people. He’d talk about McDonald’s vs. Burger King or the rise of Nike or how Steve Jobs started Apple, all in a way that was very interesting for a kid. There was nothing about P/E ratios or market caps – things he figured we could learn later. He wanted us to understand the essence of business and what made a business successful."