Davidson and I disagree to an extent on real estate. I think certain sectors are due to fall or flattening (apartments are overbuilt for example) but I see the sector in general having years of growth ahead of it. The current issue with real estate both residential, retail and commercial (for the most part) is a lack of supply. Lending standards are still over regulated and very tight, supply is limited and well below historical averages and there is still plenty of latent demand. Should credit just normalize we could easily see another surge in housing and the sector in general. I’d not I am not talking about lending “normalizing ” to 2004-06 but to the decades before in which one did not need a 750 credit score to obtain a mortgage (that 750 today is a lot hard to get than it was in 10-15-20 years ago).
In a rare interview with Harvard Business School that was published online earlier this month, (it has since been taken down) value investor Seth Klarman spoke at length about his investment process, philosophy and the changes value investors have had to overcome during the past decade. Klarman’s hedge fund, the Boston-based Baupost has one of Read More
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