2024-10-27
58 分钟You're listening to tip.
Today I have an unconventional guest on the show who has returned 30.4% per annum since 1992.
He's unconventional in many ways, but the primary reason he's different from many of the other guests that I've spoken to is because he comes from the real estate industry.
Since inception, his returns have outpaced those of some of the best asset management businesses in the entire world, such as Brookfield and Blackstone.
Now, what drew me to Larry was his ability to think about investing in real estate as distinct business units.
Instead of considering the Connor Group's apartments as kind of, you know, set it and forget it investments, he and his team actively improve the underlying business inside of each apartment complex.
He successfully increases the operating margins of the apartment complexes by an astounding 60 to 80% within just a few short years of ownership.
This is tremendous value creation, and I think it's worth researching a little bit more how he does it.
Larry considers himself an investor in real estate, not simply a real estate investor.
He's used his past knowledge and experiences, including his successes and more importantly, his failures, to design his business.
In his view, he is a contrarian, which I greatly appreciate as a value investor.
A couple great examples of his contrarian nature are that he doesn't hire from within the real estate industry.
He deploys capital during economic downturns.
He's paid particular attention to aligning his employers with the investors of his company.
He deploys long term thinking, and he doesn't come from a traditional financial or real estate background.
Another fact about Larry that I found really interesting was his take on risk.
Larry is someone who has done some hazardous activities on the face of it, such as piloting the historic Axia Mission 1, the first fully private mission to the International Space Station.
He completed three dives in five days in the Mariana Trench, the deepest point on Earth.
He executed the highest altitude low open formation skydive ever.
And he's competed in the 24 hours of Le Mans, arguably the most famous endurance focused sports car race there is.