In Search of the Perfect Investment

With most investments, the only impact you can make on your final IRR result is the price you pay.

You can paint the building. You can fix the lobby. But what will determine your success is the price you pay upfront.

Hence, the need to learn to negotiate.. to bargain, to handl (in Yiddish).

+ A friend offered $35 million on a building. The owner was miffed. He sold it for $50 million. But the sale fell through. My friend got it for $35 million. Sales fall through every day. The key is to be  around, ready to scoop your bargain up.

Rules:

+ You may not fall in love with it.

+ You must be firm.

+ You must be willing to walk.

+ You must recognize there are a million buildings out there.

Most importantly, when you lose one, another will appear.

When God closes a window, she opens a door.

It’s amazing how many public finance markets are not transparent with prices posted every minute – like the stockmarket.

Buy muni bonds. Buy foreign exchange. Buy real estate. Buy art (except at auction).

You must negotiate the price, the commission, the fees. Everything. There’s nothing embarrassing about bargaining. Even if you so it the ritziest store in your town.

This goes also for day-to-day buys. Clothes. Cars. Especially hospitals.

+ The hospital that did my cataract operation sent me a big bill for drugs they allegedly used and which weren’t covered. I said I didn’t understand the bill, Could I please have an itemized bill? Two days later a new bill arrived showing many entries had been crossed out and I now owed them nothing. Yesterday, they sent me a nice letter along  with a “Grateful Patient Donation Firm.” They did a good job. I’ll give them a donation.

+ Susan is bringing some money to the U.S. from Australia. We begged the bank for a better rate and saved $1,500.

+ There isn’t a store — bricks and mortar or online – that won’t bargain something away. Free shipping. 15% for opening a credit card with them.  The summer promotion. Whatever coupon they have in the drawer under the cash register. But you’d better talk to them. Begging and flattery work. Being angry doesn’t. This applies specially to airlines, whose personnel have total control over your happiness when you’re traveling.

 It was a long night. Wonderful, but exhausting. You’ll see why below.

Favorite recent New Yorker cartoons.

Harry Newton who this morning is officially a grandfather. This is Eleanor Michele Newton.

Born in the middle of the night (3:37 AM PST) to happy exhausted parents, Anne and Michael. Eleanor tested this morning  in the top 99% percentile for intelligence, charm and beauty. Amazing what they can do these days.

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