Wisdom of Cantankerous Sam Zell
I love this guy Sam Zell - he’s just so funny and sharp. Zell is the real estate investment billionaire who sold his Equity Office Properties Trust to the Blackstone Group for $39 billion in the early part of 2007. He recently bought the Tribune Company, owner of the Chicago Tribune and the Los Angeles Times. The company also owns the Chicago Cubs major league baseball franchise. Zell is known for using colorful language during press conferences and speaking very clearly and succinctly in a straightforward manner. One Los Angeles media organization had this to say:
Last week you may have encountered some colorful uses of the lexicon from Sam Zell that we are not used to hearing at the Times…But of course we still have the same expectations at the Times of what is correct in the workplace. It’s not good judgment to use profane or hostile language and we can’t tolerate that…In short, nothing changes; the fundamental rules of decorum and decency apply…Sam is a force of a nature; the rest of us are bound by the normal conventions of society.
He recently appeared on CNBC to talk about the economy, the housing market in particular, and his plans for his recent investments in newspapers and the Chicago Cubs. Watching the guy speak, you can’t help but be impressed by his dry humor, his uniquely cantankerous tone, and the unmistakable impression that he has had a fire in his belly for a long time. Here are some interesting tidbits (paraphrased):
- On selling the Chicago Cubs: “We own the Cubs and we intend to sell on our time frame and manner in which we choose, many others have opinions on how we should do this, but I don’t care. Excuse me for being sarcastic, but the idea that others are debating about what I should do with my assets leaves me questioning the integrity of that debate. There are a lot of people who want to buy the Cubs, and they would like to buy under their terms and conditions. Unfortunately, they have to deal with me.”
- On politics: “We have two Democratic candidates who are vying with each other to describe the economic situation worse. The reality is that if you live on Wall Street and you’re in the credit markets the world couldn’t be worse. If you’re a farmer and you’re getting $25 for your wheat, you’re having a great time. If you’re a CEO and you’ve got a balance sheet that’s bullet-proof, you’re in a great position. This whole thing is way out of control, way out of hand.”
- I tend not to get involved in political campaigns.
- “Logic can overcome Liberalism.”
- On investing: This is where I get the most value out of listening to this guy.
- “We have been professional opportunists, when there is dislocation, that usually creates opportunity.”
- “I never call or time markets - I only try to respond to what I think is logic.”
- “My decision to sell Equity Office was not based on crowds, was not based on euphoria. Someone made me an offer I couldn’t understand and I thought it was a Godfather offer.” Another classic line.
- Two old dogs: Jack Welch, former CEO of General Electric (GE) was on the show and got to ask Zell a couple questions. It was a little heartwarming to see two great businessmen sharing a little camaraderie. You just know these guys are tough bosses to work for, but they keep it honest and straight.
- Jack Welch: Sam, you’re the master of timing.
- Jack Welch: These guys (CNBC crew) accuse me of being a cheerleader, but they wouldn’t dare say that to you.
- Jack Welch: Sam, can we play what you’re saying every half hour (because it’s so positive)?
- Sam Zell: You guys are opining every half hour so what do you need me for?
- Jack Welch: Sam, thank you so much.
- Sam Zell: Good to see you again Jack.
Watch the video here:
Mar 2nd, 2008 at 11:51 pm
[…] earlier last month, NYT partnered with Sam Zell’s Tribune Company, Gannett (GCI), and Hearst to form a joint venture called quadrantONE. Yet another in a long line […]