Allan – How is buying a high quality building with conservative underwriting and an all cash yield (read: zero debt) north of 12% (based on rents well below today’s depressed rental rates) speculating? I’d call it investing. Sure, the investment could go south, but so could any other investment/company.

I seem to recall the bulk of wall st. firms and their “simple valuation tools” being way off the mark so I wouldn’t hang your hat on that analogy.

To me, investing is based on conservative/historical fundamentals, speculating is based the need for a rising market to make the deal work.

I would say that buying a newly constructed class “A” bldg on a great location at 50% of replacement value that needs 40% occupancy to break even is investing, not speculating.