"[Investors] trade growth for the rule of law" in some foreign markets, he remarked, explaining that it would be a dubious effort to expect a favorable ruling in, for example, a Brazilian court. This reinforced his main point of finding a trustworthy partner in these foreign endeavors, since it was improbable to represent yourself.

[IMGCAP(2)]Group was not investing in the other three BRIC markets, Linneman quickly pointed out, but it wasn't necessarily Brazil's land that was special to Zell. "[Equity Group] hasn't found anyone we felt was an honest partner" in India, for example, which was a hindrance to opportunity. Zell did not mention which companies he had or had not dealt with in India.

But as foreign investment went, although Zell was a proponent of currently avoiding US investment, he was not fixated on western Europe. "You're trading no growth for no rule of law," he commented. "I don't see any future for it except Disneyland." For an investor like Zell, who searches for growth margins over all else, the spreads in Europe simply did not appeal to him and even less so for Japan, as he jokingly explained, "although comparing growth in western Europe to Japan is like comparing leprosy to cancer."

The last couple years have been hard on the US and opportunities seemed to have lessened, the duo noted, saying that the change in mentality over investment had become detrimental. Linneman recounted that 10% return used to be good, with the rare 25% rate of return the anomaly. Zell agreed, saying that there wasn't opportunity in the US for these size returns unless you leverage out the deal or "play the yield curve" or "floating rate debt." Linneman hammered home the current state of the economy, pointing out a recently ill-conceived notion of return on investment.

"Everyone believed they could do 20s, like it was their God-given right," he said. "And that didn't turn out too well."