Revere Street Essay

Revere Street 1. How would you assess Edward Alexander's decision-making process?

Looking at the decision from the investor’s point of view, I feel that Edward Alexander has made the right choice to go ahead and buy the Revere Street property because; him being a young investor, age is the biggest advantage he has and therefore this is the right time for him to buy the property. Alexander is a Harvard Graduate and the chance of him going up the corporate ladder is very high. Moreover it’s an improving neighborhood and taking into account his financial considerations, he wouldn’t get better deal. Risk is something which all the investors consider before they take a decision. Alexander is getting better returns when compared to the risk he has taken at the moment. It is a known fact that he has put a lot of pressure on himself, which might affect his work life, but once the renovation is completed and the tenants occupy the place, the going will get easier.

2. How would your decision-making process differ from Alexander's?

The first part of my decision making process would have been the same as that of Alexander’s, which is consulting the friends and brokers. I prefer liquidity in my funds and wouldn’t have invested all my money as family goals should also be given due importance. Exit strategy is something which an investor should always plan for, and I didn’t see any exit strategy planned by Alexander. Rather than living in the same apartment, I would have looked for some alternatives, which Alexander didn’t. I feel that Alexander has devoted too much time towards the project and ignored his current job, which is of primary importance.

3. Should Alexander make the investment?

Yes, Alexander should make the investment.

4. Would you make the investment?

Yes, I would have made the investment

5. Explain the similarity or difference