Property investor vs. value investor

Property investor believes in the average numbers and she seeks above average opportunities. Value investor believes in 80/20 rule and she looks for outliers.

Property investor focuses on the middle part of the bell curve. Value investor spends her time at the tail end.

Property investor expects a moderate return on her investment. Value investor bets on 10x returns from her money.

Property investor is right most of the time. Value investor is wrong seven or eight times out of ten.

Property investor looks elsewhere for references to set her price. Value investor looks into spreadsheets for models and assumptions.

Property investor likes a good story. Value investor likes a good story too, but she loves a great financial model even better.

Property investor's main contribution is her capital. Value investor's contribution is her thoughts, perspectives and unique understanding of a demographic, a market or a technology. Capital is a ticket for her to get involved.

There are many more property investors than value investors. Like many things in life, there is no right or wrong to each approach. But as an early stage entreprenuer, it is critical that we develop the intellectual muscle to quickly figure out what makes the other person tick.