Greed, For Lack of a Better Word, is Good!

And now is a good time to be greedy

Warren Buffet once said: “Be fearful when others are greedy, and be greedy when others are fearful.”

I’m not a big fan of the word “greedy,” but I am a fan of the way Warren Buffet approaches investment opportunities. In fact, at the Rancon Group, we’ve been applying this Buffetism to the real estate market in Southern California for more than 40 years.

It wasn’t so long ago that real estate investors were lined up 10-deep to buy properties. There was so much demand and such a limited supply, that many of those investors ended up with sub-par properties purchased at an inflated rate.

Today, there are no lines for buying properties. No greedy speculators flipping and flopping properties. No big rush to make a killing.  It’s a buyers’ market, but few are buying.  Just folks like Warren Buffet and me!

But now, more than any other time in the past four recessions, I am being extremely aggressive in forming investment partnerships to buy real estate in Southwest Riverside County.  They say, practice makes perfect, and I’ve learned from 42 years of experience that we achieve the greatest returns on our investments when buying at the bottom of a recession.  I’ve also learned if you wait until the media and the buzz say everything is positive, it’s too late!

As we move into 2012, the Rancon Group is looking ahead to acquiring a few more top-rated properties before the hordes once again descend on the real estate market. We are also working diligently to prepare some of our key properties for sale to the merchant builder community, in case there are any fellow Buffet admirers out there ready to make a move.

So back to Warren Buffet’s quote, now is a good time to be greedy, especially if you’re an investor, or business partner with the Rancon Group.  In fact, I’ll go so far as to agree with the Gordon Gekko character in the movie “Wall Street” in that: “Greed, for lack of a better word, is good!”

 

Author

Dan Stephenson

 

Daniel L. Stephenson

Leave a Comment


four + 4 =