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Dane Bowler

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  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    porkchops,

    Perhaps you should read the article. Its a criticism of asset allocation and the portfolio isn't just 100% equities, its 100% REITs. The point is to show that a portfolio can be completely diversified even without any sort of asset allocation requirements.

    BTW WY dropped in price due to a truly MASSIVE special dividend doled out for tax purposes when it converted to REIT status.
    Jul 17 12:23 PM | 1 Like Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    Alanintempe,

    Good question,

    Ascynchrony would be more like zero correlation whereas negative correlation still implies linked movement.
    Jul 17 12:20 PM | Likes Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    Pendragony,

    Thank you for the kind words. I really appreciate the feedback
    Jul 17 12:18 PM | Likes Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    Diego,

    Thank you for your insightful contribution.
    Jul 17 11:45 AM | 3 Likes Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    galicianova,

    This is not meant to constitute an entire portfolio, but rather was used as an example of asynchronous stock interactions. The point is to consider the interactions of all stocks with each other regardless of the portfolio.

    In reality it would probably be better to use more than 5 stocks, but as an example, using more would have obfuscated the point.

    I hope this helps clarify, and thanks for reading
    Jul 17 11:35 AM | Likes Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    streakmarine,

    I do not favor any sort of exposure. In my opinion it is better to look at each potential investment individually and see how it fits with a portfolio.

    Thanks for the comment,
    Dane
    Jul 17 11:31 AM | 2 Likes Like |Link to Comment
  • Diversification Fallacies, Part 1: Asset Allocation [View article]
    left banker,

    The use of extreme hypotheticals is a logical technique that pervades reputable philosophy. This particular hypothetical was used to demonstrate that asset class does not necessarily entail a certain risk profile.
    Jul 17 11:30 AM | 1 Like Like |Link to Comment
  • Campus Crest: The Best Investment Among Student Housing REITs [View article]
    1sd,

    That is a good question, and it remains a bit uncertain. While the near-term effect would likely be negative, CCG's CEO believes that it could be a net positive in the long run.
    Jul 16 05:08 PM | Likes Like |Link to Comment
  • Campus Crest: The Best Investment Among Student Housing REITs [View article]
    Adam, Thanks for the added insights. The value add of these properties over dorms to students is something I should have mentioned.

    To Ron,
    After rereading your comment it is clear that I misunderstood you. I apologize for the confusion.

    You are correct that the property is of sub-optimal location and we should be very watchful to ensure CCG chooses smart locations going forward.
    Jul 13 01:26 PM | 1 Like Like |Link to Comment
  • Disproportionate Sell-Off Of REIT Preferreds Creates Substantial Opportunity [View article]
    jschroeder,

    I couldn't agree more
    Jul 12 11:23 PM | Likes Like |Link to Comment
  • Campus Crest: The Best Investment Among Student Housing REITs [View article]
    Bruce,

    Many REITs will distribute in excess of what is required by tax law. The main purpose is to reward shareholders. It seems that in the REIT market those with bigger dividends tend to be preferred by many investors.

    As you mention, it is a tradeoff with using the money for further investment. However, given the fact that CCG has ample liquidity I am quite satisfied with their choice to pay out a large dividend and fund acquisitions through other means.

    Thanks for the comment
    Jul 12 11:21 PM | 1 Like Like |Link to Comment
  • Campus Crest: The Best Investment Among Student Housing REITs [View article]
    Ron,

    Well, I can answer at least some of your concerns.

    I agree that the general awareness of the cost of a college education is increasing and that this could hurt enrollment at more expensive schools. CCG is also aware of this and they intentionally target schools with cheaper tuition.

    In terms of the student loan changes, CCG's CEO has said that he believes it will actually help the industry in the long haul as it creates more stability.

    In terms of the Grove at the university of pennsylvania, I'm not quite sure what you are referring to about its location. It is actually on the campus of the university of pennsylvania and only 0.2 miles away from the other prominent college. I cannot think of a better location.

    I hope this helps to clarify some of the issues and thanks for furthering the discussion.
    Jul 12 11:18 PM | Likes Like |Link to Comment
  • The Ongoing REIT Soap Opera [View article]
    Socksycat,

    Adam will probably have some insight on this as well, but I'll go ahead and jump in as I have been following the merger.

    I am fairly certain that the lawsuit will be dropped as they have no case. CapLease solicited many companys during the go-shop period and was unable to find a higher bidder. This will serve as evidence that the LSE shareholders are being fairly compensated. As someone who owned caplease going in to the announcement, I can say that I am quite pleased with the 20% gain brought about by the merger.

    ARCP recently announced that they will accelerate the closing of the merger and expect it to finalize during the 3rd quarter.
    Jul 12 11:29 AM | 2 Likes Like |Link to Comment
  • The Ongoing REIT Soap Opera [View article]
    Adam,

    Nicely written article and you are correct that the sell-off was justified for some REITs. I was referring more to the nature of the sell-off. Overvalued companies like O or NNN should have sold down because they were overvalued, not because of interest rates.

    I appreciate that you continually advocate careful stock selection over blind asset class allocation. More investors should follow that path.
    Jul 11 10:05 AM | 1 Like Like |Link to Comment
  • Disproportionate Sell-Off Of REIT Preferreds Creates Substantial Opportunity [View article]
    karibruce,

    Almost all preferreds have no maturity. They simply have a call date at which the company can redeem them at their option. People buy these for the yield and they generally stay around par value.
    Jul 11 09:57 AM | Likes Like |Link to Comment
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