Distressed Asset Investing

Distressed asset investing involves purchasing assets, such as real estate or company stocks, that are undervalued due to financial trouble, bankruptcy, or poor management. Investors seek to buy these assets at a lower price, believing they can restore value through strategic improvements or management changes. The goal is to profit when the asset’s value increases, often after market recovery or restructuring. This strategy carries risks, as the success depends on effectively turning around the distressed asset or market conditions improving over time.