Investing in High-Quality REITs with a Margin of Safety
Introduction
When it comes to investing in Real Estate Investment Trusts (REITs), having a margin of safety is crucial. Agree Realty and VICI Properties are two high-quality REITs with strong fundamentals and impressive total returns. However, due to their run-up in share prices, they currently offer little margin of safety for investors.
Managing Market Volatility
Investing with a margin of safety can help manage market volatility. For example, my cost basis of $53 for Realty Income has helped me stomach volatility and the stock’s underperformance. By purchasing stocks at a price below their intrinsic value, investors can protect themselves from significant losses during market downturns.
Assigning Specific Roles in Your Portfolio
I recommend assigning specific roles to stocks in your portfolio to achieve a balanced approach to investing. For stable dividends, consider investing in Starwood Property. For moderate growth, look at PepsiCo. And for high growth potential, consider adding Visa to your portfolio. By balancing income and growth stocks, you can create a well-diversified portfolio that can weather market fluctuations.
Conclusion
While Agree Realty and VICI Properties are high-quality REITs, their current share prices offer little margin of safety for investors. By investing with a margin of safety and assigning specific roles to stocks in your portfolio, you can better manage market volatility and achieve a balanced approach to investing in REITs.
How Will This Affect Me?
Investing in high-quality REITs with a margin of safety can help protect your investments during market downturns and volatility. By assigning specific roles to stocks in your portfolio, you can create a well-diversified investment strategy that balances income and growth potential.
How Will This Affect the World?
Encouraging investors to invest with a margin of safety and assign specific roles to stocks in their portfolios can help create a more stable and resilient financial market. By promoting balanced investing strategies, we can mitigate the impact of market volatility on individual investors and the global economy as a whole.
