Pouya David Yadegar: How one investor applied real estate skills to equity investing
There are several reasons stocks can be a great investment vehicle along with real estate. Therefore, it is not surprising when Principal and CIO of Prime Opportunities Investment Group LLC, Pouya David Yadegar, became interested in stocks.
Before founding the firm, Pouya managed his own family’s wealth through investments in high-end Los Angeles real estate. The family office focus is on purchasing and developing multifamily housing in the wealthier areas of Los Angeles such as Beverly Hills and Brentwood, and Pouya’s real talent lay in his ability to find undervalued properties. Deciding that he could use his knack for identifying mispriced real estate to also uncover underpriced stocks, he branched out into equity investing.
Investing in stocks offers several advantages over real estate. Most noticeable is the liquidity of stocks over real estate. Unloading stocks is practically instantaneous, while selling off property is most emphatically not.
Perhaps what makes stocks especially attractive as an alternative investment to real estate is equity’s scalability. The only factor limiting how much stock an investor can own is how much money he has to invest, meaning, there is almost no limit to how much money he can make. Although property can go up in value, the percentage it rises is limited by many factors, making real estate more earth-bound as a scalable investment.
Stocks require minimal work on the part of the owner, whereas real estate demands upkeep, keeping neighbors and renters happy, finding tenants and more.
Stocks offer the ability to invest in a variety of businesses in virtually every industry. It is easier to protect your investment in stocks if the market should go south, and there may be less tax obligations and fees in the stock market than in real estate investments.
Additionally, the layers of complexity in stocks are as varied as the businesses they represent, so the opportunity to identity more significant price dislocations exists if you have the knack of understanding operating businesses.
With his years of experience in real estate, Pouya David Yadegar has found that the same analytical skills, and long-term approach that continue to lead the family office to success in real estate have been invaluable in his pursuit of stock investing.