I believe the fundamentals of business — supply and demand, liquidity equals value, good corporate governance, and reliable partners, to name a few —… - Sam Zell

I remember this event so clearly because it was at this point in my career that I fully realized the value of tenacity. I just had to assume there was a way through any obstacle, and then I’d find it. This is perhaps my most fundamental principle of entrepreneurialism, and to success in general.

Frankly, there’s no substitute for limited competition. You can be a genius, but if there’s a lot of competition, it won’t matter. I’ve spent my career trying to avoid its destructive consequences. Competition skews people’s assessments; as buyers get competitive, the demand for assets inflates pricing, often beyond reason.

In the beginning, we took nearly all of our returns in residuals, and we charged very little in fees. Eventually, the residual equity turned to cash, and then we’d reinvest it in the business. Consequently, we never had any money. Never. We were asset rich and cash poor. We operated the company on a shoestring. One year, we sold the last piece of an asset, got a windfall of $30,000, and promptly bought a stereo system for the office.