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Fortunes have been made and lost in real estate, a fascinating asset class with enduring relevance to humanity. It may be the only asset class that literally touches every human being, and nearly everyone has some idea of the utility of real estate. Due to its ubiquity and fundamental value, real estate is a vast sector with numerous sub-sectors, with residential and commercial among the highest-level groupings. Within each, multiple distinct sub-segments enable investors to own assets with a wide range of features and payoff profiles. When you overlay considerations such as geography and financing structure, it becomes clear just how tailored real estate investment strategies can be to the risk exposure preferences of investors.
In seeking to provide insights for investors in the stock market, my podcast co-host Elliot Turner and I invited real estate expert Bill Chen to join us on This Week in Intelligent Investing for a series on real estate. The episodes were recorded in recent months, and I am delighted to present them here as an in-depth primer on real estate investing in public markets. Having been recorded in recent months, this program is both timely and evergreen.
Bill Chen is the founder and managing partner of Rhizome Partners, Rhizome Real Asset Opportunity Fund, and Rhizome Hard Asset Opportunity Fund. Prior to forming Rhizome in 2013, Bill managed his own capital, focusing on deep value investments and event-driven strategies.
In this four-hour program, Bill provides a tour de force on the real estate sector. He makes the investment case for real estate investment trusts (REITs) from a long-term investor’s perspective and discusses large-cap multifamily REITs, among other market segments. He explains how investors should think about the capital structure of REITs, and highlights Vornado Realty Trust as an example. Finally, Bill addresses premortem failure analysis, management quality, and related topics.
The primary purpose of this podcast is to educate and inform. The views, information, or opinions expressed by hosts or guests are their own. Neither this show, nor any of its content should be construed as investment advice or as a recommendation to buy or sell any particular security. Security specific information shared on this podcast should not be relied upon as a basis for your own investment decisions -- be sure to do your own research. The podcast hosts and participants may have a position in the securities mentioned, personally, through sub accounts and/or through separate funds and may change their holdings at any time.
