Sternlicht: Investors Underprice Political and Legal Risk in Emerging Markets
Barry Sternlicht · Barry Sternlicht – Masterclass in Real Estate in a Post-COVID World (Capital Allocators, EP.216) · Oct 4, 2021 · at 41:27
Barry Sternlicht discusses the disparity between equal projected returns (IRRs) in emerging markets versus the United States given institutional and legal risks.
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“One of the lessons I've learned over the last couple of years, 30 years, is we don't put enough political risk into our Like a 20 in India is not the same thing as a 20 in the United States. There's so many things that can go wrong, and the rule of law is so less developed. And the same would be true of China. An 18 in China, 18 here, other than 18 here, a hundred times out of a hundred.”
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