Thursday, September 26, 2013

Sam Zell on emerging markets

"... trading growth for the rule of law" -Sam Zell on investing in emerging markets.

Sometimes simple phrases sum up how you look at an asset class. For example, being long commodities is also being short technology. The bet is that technology can keep real prices falling in the commodity area. Sam Zell has made a good short phrase which sums-up emerging market investing and in particular emerging market real estate investing. You want to have growth that exceeds the crony capitalism, and red tape associated with most emerging markets. If legal and regulatory problems of emerging markets can be solved, the returns potential is significant. This comment is consistent with the economic development work on structural change and the main topic of the book, Why Nations Fail?

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