Steve Stoller

Value investor in public equities fund for family & friends, adding PE & RE for myself. Idea exchange and DMs welcome.

[Steve Stoller @StevenStoller1]

@globeandmail Enjoyed the article Asheef!

[Steve Stoller @StevenStoller1]

@EllliotttB hmmmm

[Steve Stoller @StevenStoller1]

@MLBNetwork @BlueJays I wish everything in my life had this detailed and insightful a breakdown.

[Steve Stoller @StevenStoller1]

@mwmoedinger Great thread!

[Steve Stoller @StevenStoller1]

In 2025 alone, the deficit is nearly $2 Trillion. So $50B is 2.5% of this year's overspend by politicians. Remember the country's total deficit is $37 Trillion, or $37,000 Billion. $50B is .13% of that amount-- if the total deficit is a football field long, $50 Billion is less than five inches.

[Steve Stoller @StevenStoller1]

@moseskagan Love this! LP's pay attention to Moses here...when a sponsor gives you a deck, make rent growth zero, take away debt, assume no cap rate change (and look at their fees, op ex budgets etc...). You will screen out most quickly.

[Steve Stoller @StevenStoller1]

Hi M. I owned a restaurant years ago, a burrito place. If we forgot a 50 cent side of sour cream on a To-Go order, that customer (they called to let us know we forgot) received a certificate good for an entire meal next visit. The food cost of a few dollars was far less then the goodwill we could create by really taking care of them. Imagine the story you would tell here if they comped your meal and bought ten desserts for everyone else too. Costs them very little compared to the long term benefit. The lifetime value of a customer is enormous to any business.

[Steve Stoller @StevenStoller1]

10,000% is a return of 12.3% per year - not impossible in real estate, but tough. Better as a GP than LP. Re: Stocks, put the wife at ease by indexing and dollar cost averaging. No guarantee of 100x, but over 40 years you may manage 50x (10% CAGR). For context, Buffett averaged 19.9% annually for 60 years, or 5,503,000%. Key lesson: Start compounding young. Still long $BRK.

[Steve Stoller @StevenStoller1]

... or with floating rate debt purchased three years ago.

[Leyla @LeylaKuni]

Pitch decks for Class C multifamily purchased at 5% cap rate

[Steve Stoller @StevenStoller1]

She is right!…. I had lengthy conversation about this with an aging wallpaper installer who works for my decorator wife's clients. No one wants to apprentice to learn his trade, and the skills are disappearing. High end installs cost $30-50K ++ (de Gourney, Gracie, Schumaker…). The installer can’t make mistakes and frequently has a number of challenges to face in wall contour, panel matching, etc. where they have to be right on the first try. Unlike other trades, wallpaper installers work inside with A/C as their work is near completion of a home. The very best ones travel around the country and are paid very well. At a more modest level, they are equally difficult to find and often many of the same challenges remain.

[Micah Springut @mspringut]

BREAKING NEWS:

We’re now getting our first shots of the capital installed on the Frick.

Did we make it look old enough?

[Steve Stoller @StevenStoller1]

@KamalaHarris https://t.co/syK4HWAp89

[Roger Ledbetter @rledbetterCPA]

One of the best parts of my job is being able to read all variations of Operating Agreements.

I keep a running list of useful sections I like for when I work with clients to review theirs.

A few of my favorite ones I don't see in every OA:

[Steve Stoller @StevenStoller1]

@moseskagan In your experience, what are the best exterior value adds (payback) to make older muti-family buildings look better? Asking for a friend.

[Steve Stoller @StevenStoller1]

@moseskagan Agreed Moses...I think the X-factor of a true fiduciary is someone who is hard-wired to do the right thing, meaning the satisfaction they get from doing so (or shame they incur by not) outweighs any monetary gain. Very hard to suss out.

[Jake @EconomPic]

Prisoners dilemma

[Steve Stoller @StevenStoller1]

My 2 cents: The best metric is strength of management team and UYOC. IRR is great for marketing, but is not the investors friend when comparing investments. It is is easily gamed with timing, leverage, etc. For example, if you invest $1,000 and make $1,000 in year one, then $2,000 in year ten you have a 26% IRR. The challenge is finding a safe/good return for that $1,000 you got back in year one. If instead you receive $3,000 in year ten, that would be an IRR of 12%. For me that's a better investment. Focus on Return OF Capital, then Return ON Capital (preferably de-levered). Use IRR when it approximates CAGR.

[David Perell @david_perell]

The 404 page on the Financial Times is a work of genius