Ep74: Beth Azor – Keep your Arrogance and Overconfidence in Check

Beth Azor is a 33-year veteran of the commercial real estate industry and owns Azor Advisory Services, which specializes in consulting services in training, sales, leadership, coaching, acquisition, due diligence, and market analysis. Beth owns and manages a US$79 million portfolio of commercial retail properties in Florida and recently wrote and published Don’t Say No For The Prospect, a collection of stories from her career and experiences as a retail leasing rock star. She is a frequent guest on business and commercial real estate podcasts, has her own Retail Leasing for Rockstars podcast and hosts the Rockstar Book Club Monthly Call, where she and her guests review nonfiction, business-related books. A graduate of Florida State University (FSU), she is also chair emeritus and founder of the FSU Real Estate Foundation.

 

“Timing is the key and I would rather go for it and make mistakes, and even lose money, than to never go for it ever.”

Beth Azor

 

Lessons learned

1. Timing is everything, but arrogance can be the cause of failing to act in a timely fashion. Beth waited too long and rejected a cheaper offer that could have maintained her business better in the long run after the 2008 US real estate crash.

2. Pay close attention to due diligence. In this case, it was due diligence about the location and demographics of her property. Beth failed to appreciate the negatives about the location, which was surrounded on three sides by unpopulated areas.

 

Andrew’s takeaways

1. Never underestimate the quagmire that bankruptcy can swamp you in. Whether it is you, as in your company, or you, as a person, bankruptcy courts can change things suddenly, and for the worse. At the bang of a gavel, a judge can make a judgment on a bankruptcy that can really go against an investor.

2. Arrogance and overconfidence are among the most prevalent of the mistakes investors make. Macro factors are a major thing investors should always think about when investing. Sometimes it’s about preparing for events, such as the 1997 financial crisis in Asia or the 2008 global financial crisis.

3. Andrew recommends that investors follow his six-step investment process.

a. Find an idea

b. Research the return

c. Assess the risks

d. Create a plan

e. Execute the plan

f.  Monitor the progress

All those suggestions apply, whether it is a land investment or a stock investment. The key item for Andrew is the separation of research on return from research on risk.

 

“Everybody who’s getting ready to make an investment needs a devil’s advocate … (who) must be focused on what can go wrong, and why it can go wrong, and what can be the impact when it does go wrong.”

Andrew Stotz

 

You can also check out Andrew’s books

Connect with Beth Azor 

Connect with Andrew Stotz

Further reading mentioned 

About the author, Andrew

Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company that provides institutional and high net worth investors with ready-to-invest stock portfolios that aim to beat the benchmark through superior stock selection.

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