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Seek Limited Competition for Investment Success
Investment success hinges on the interplay of supply and demand, with cash flow being a crucial component. Acquiring assets in high demand that are not easily replicable is vital for strategic investment. Sam Zell emphasizes the importance of entering less crowded markets, as limited competition can significantly enhance chances of success. He warns that high competition inflates asset pricing and skews buyer assessments, making it essential to seek out natural monopolies or oligopolies over competitive markets to avoid destructive pricing dynamics.