Lesson Learned: Stay Inside Your Circle Of Competence

Jun. 01, 2025 7:00 AM ETADC, DLR79 Comments
(12min)

Summary

  • I maintain a heavy allocation to REITs, leveraging my lifelong real estate expertise and focusing on my circle of competence for superior risk-adjusted returns.
  • Agree Realty stands out for its high-quality tenant base, disciplined management, and predictable dividend growth, making it a core long-term holding.
  • Digital Realty benefits from global data center demand, scale, and prudent balance sheet management, supporting robust growth and a well-covered dividend.
  • My investing philosophy is shaped by hard lessons in business: stay within your expertise, prioritize management alignment, and always protect principal above all.
  • Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »

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A few weeks ago, I wrote an article titled, REITs: The Riches Are In The Niches, in which I explained my appeal for Real Estate Investment Trusts (REITs) and the importance of “adopting asset allocation targets that dovetail

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This article was written by

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Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies.

Brad, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President.

Note: Brad is also related to Nicholas Thomas who contributes to Seeking Alpha.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADC, DLR, IRET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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ADC--
Agree Realty Corporation
DLR--
Digital Realty Trust, Inc.

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