Private equity tycoon Jahm Najafi, 61, recently sat down for a rare interview about his investment career, shedding light on his investment philosophy, successful bets, and outlook on the current market environment. Born in Iran, Najafi immigrated to the U.S. with his brother in 1975, eventually earning degrees from UC Berkeley and Harvard. He launched his own buyout firm, Najafi Companies, in 2002, making lucrative investments in companies like Network Solutions and the Phoenix Suns.
Najafi shared his views on the biggest risks investors face today, citing geopolitical uncertainties and potential shifts in liberal market principles. He highlighted the importance of liberalization and trade policies in driving global economic growth in recent decades. When asked about investment opportunities, Najafi pointed to challenging geographic areas like Ukraine and emphasized the importance of identifying products and services that are irreplaceable by technology.
Reflecting on his early investment career, Najafi discussed his transition from working at Salomon Brothers to launching his own investment firm focused on real estate opportunities post the 1980s savings and loans crisis. He shared details about his first standalone investments, successes like Network Solutions, and lessons learned from failures such as Resolution, a content development venture that did not meet expectations.
Najafi emphasized the value of partnering with strong management teams and approaching investments with a focus on long-term growth potential. He discussed his investment philosophy of identifying unusual pricing parameters, leveraging economic and industry-specific dislocations to make strategic bets. Looking back, Najafi advised his younger self to make fewer definitive decisions, be open to learning from mistakes, and pivot as needed in response to new information.
In terms of book recommendations, Najafi highlighted William Green’s Richer, Wiser, Happier for its focus on authenticity and leading a fulfilling life, as well as Peter Lynch’s One Up On Wall Street, which influenced his approach to making investment decisions. With a net worth of $1.4 billion, Najafi remains active in the investment world, focusing on opportunities in industries and regions where he sees potential for growth and value creation.
