Waterton’s next step: Sell many of the properties it bought between 1999 and 2001, then rebuild the portfolio with new acquisitions. “This is the first year we have shrunk, which is kind of good because it gives our team some breathing room and a lot of time to focus on improving the way we operate,” says Schwartz. Will these upgrades happen? The odds say yes. In the 1999 cover story, Schwartz said, “We do a good job, but I’d like to bring it to the next level.” His expectations haven’t changed—only the bar is higher. “We still would like to continue to take ourselves to the next level,” he says. “So when you talk to me in six more years, I hope we can say we did that.”