OUR INVESTMENT PHILOSOPHY
Contrarian investing is our primary investment philosophy, and is defined as:
It is perhaps more simply stated by the famous quote attributed to Billionaire Oilman J. Paul Getty “Buy when everyone is Selling and Hold until everyone is Buying”. Getty and some other famous contrarians have made Billions by adhering to this simple yet controversial investment philosophy – Warren Buffet, George Soros, Jimmy Rodgers and Sir John Templeton are just a few. They bought when everyone else was selling and sold when everyone else was buying. They did not follow the herd. They followed their own path. But what made them successful was not just being contrarian but also being right.
"The Cal State Companies has embraced contrarian philosophy in its real estate research and investment recommendations to its many active-participant members and partners over the past 35 years. We believe that buying (and selling!) in “Pockets of Opportunity” is the key to real estate investment success, and CRES Research has developed a proprietary econometric model for gauging where and when to invest in over 175 MSA’s (metropolitan statistical areas) nationwide. Our quarterly newsletter, Market Cycles, evaluates each market based on key econometric and real estate related data, and determines the status of each market relative to the five phases of the apartment cycle. Each quarter, a buy, sell, or hold recommendation is made to our many subscribers and active-participant members on over 175 MSA's.
Cal State Investments has partnered with its many active-participant members to purchase multifamily properties (apartment investments) in areas across the United States that have been identified as “Pockets of Opportunity”, with the main goal of maximizing appreciation by timing the market and effective property management."