3 investing mantras that catapulted Sam Zell to success

livemint.com:

Sam Zell was a prominent American billionaire businessman and philanthropist known for his focus on real estate investment. He founded or controlled several notable companies, including Equity Residential, Equity International, EQ Office, Covanta, Tribune Media, and Anixter. At the time of his passing, Zell’s personal fortune was estimated at approximately $5.2 billion. Zell's investing principles include:

Contrarian thinking is crucial for Zell, who believes that exceptional returns stem from identifying overlooked opportunities. This approach demands the need to find comfort with divergence — embracing independent research and analysis, and potentially diverging from popular investment trends. It involves challenging norms, delving deep to uncover hidden value.

Conducting thorough research rather than blindly following the crowd is paramount. This entails scrutinizing financial statements, industry dynamics, and potential risks before committing to an investment.

Above all, patience is essential. Contrarian strategies often require waiting for the market to align with one’s thesis. Success hinges on steadfastness in the face of conventional wisdom catching up.

ALSO READ: 4 Li Lu’s investing principles that placed him in the league of Warren Buffett and Charlie Munger

Prioritizing downside protection is essential in any investment strategy. This entails evaluating the worst-case scenarios and aligning investments with your risk tolerance accordingly. Seeking a “margin of safety" is crucial. This involves purchasing assets at a considerable discount relative to their intrinsic value, providing a cushion against potential losses in case of market downturns. Utilizing diversification, stop-loss orders, and hedging