Sonnenfeldt: Real estate is far more tolerant across generations than operating businesses
Michael Sonnenfeldt · Behind The Scenes Of The Billionaires' Mastermind (TIGER 21) | Michael Sonnenfeldt Interview · Jun 1, 2022 · at 36:03
Michael Sonnenfeldt, founder and chairman of high-net-worth network TIGER 21, contrasts the daily competitive pressures of operating companies with the generational durability of real estate.
0:00 / 0:15exact quote · 15.9s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“It's why most operating businesses don't lend themselves to multi-generational families. Of course, there are exceptions and some very important ones, but real estate is a much more Tolerant asset for multi-generation”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Michael Sonnenfeldt
Sonnenfeldt: Business profits disguise founders' poor investing skills
“Many people think they're great investors because when they own a business, if they make an investment, they have to talk about it at a cocktail party, and if they lose money on an investment, it gets swept under the carpet because the business itself is profi…”
Sonnenfeldt: The ultra-wealthy should limit annual spending to 2% of assets
“If you're solely living on the investments in your portfolio, if you can live on two percent of your assets or less, then you're in a safety zone, and obviously some people have the good fortune to earn a lot more than two or three or four percent on their ass…”
Sonnenfeldt: The traits that make great entrepreneurs make them mediocre investors
“It turns out that what it takes to be a great entrepreneur might qualify you to be a mediocre investor. When you're an entrepreneur, you focus on a single opportunity. You're highly emotional about it. You give it everything you can. When you're an investor, y…”
Sonnenfeldt: Extreme frugality among the ultra-wealthy suggests psychological issues
“It's one thing to live within your means that's responsible. It's another thing to be so disconnected between your wealth and what you're living that That there's something going on inside, and you know, I'll leave it to the shrinks to figure it out, but it's …”
Sonnenfeldt: Most first-time sellers suffer sticker shock from lost earning power
“I would say the vast majority of people who sell their first business go through sticker shock because they haven't really thought through that the passive earnings On the profits of the sale will generate dramatically less income than the business itself did.”
Sonnenfeldt: TIGER 21 members keep over 70% in risk-on assets
“And what's so remarkable is if you take those three numbers, the private equity, public equity and real estate, it adds up to 70 plus percent. Those are the risk on assets. So our members are relatively long-term bullish on investments. Even when they think we…”