Sam Zell is heralded as one of the most successful real estate professionals of his time. However, he doesn't proclaim to have any complicated strategy when it comes to his deals. In fact, if you go to Equity Group Investments website you'll find a page called 'Zell's Fundamentals', a list of 13 brief statements which serve as the basis of his investment decisions. Zell's Fundamentals Rule #1 - Operate on the condition of no surprises Rule #2 -Everyday that you're not selling an asset in your portfolio, you're choosing to buy it Rule #3 - Ensure management's interests are aligned with shareholders Rule #4 - Look for good companies with bad balance sheets Rule #5 - Nothing should stand between a company and its fiduciary responsibility to shareholders Rule #6 - Look for opportunities in markets with pent-up demand Rule #7 - The definition of a partner is someone who shares your level of risk Rule #8 - Liquidity = value Rule #9 - Sentimentality about an investments leads to lack of discipline Rule #10 - Take meaningful positions so you can influence your own destiny Rule #11 - When everyone is going right, look left Rule #12 - Understand the downside Rule #13 It all comes down to Econ 101 - supply and demand What's on your list of fundamentals?