REITs - Real Estate Investment Trusts - Info &amp; Discussion

Top 2. Jun 14, 1999 11:04 AM

» RandeS - Kirk,

Kirk,

Can't make any representation, but here's a few REITS that might be worth a further look (from No-Load Fund Analyst list):

American Century Real Estate
Brazos Real Estate*
Cohen & Stears Realty
Columbia Real Estate*
Longleaf Reality*

*their top picks

-- posted by RandeS

http://finance.yahoo.com/q?s=vgsix&d=1y

Top 3. Jun 14, 1999 11:24 AM

» KirkL - Cohen & Stears Realty.

Cohen & Stears Realty.

Did't Mr Brinker add that to his list awhile back?
I don't see it on my current copy.. Ah yes, here it is. He deleted it in Oct 98. Right near the bottom according to this chart.

I wonder why he dropped it? Probably the old model.... 8)

Maybe Lita has some good research links?

I like American Century as a fund and I trust Brinker's judgement for selecting Cohen & Stears so the others are unknowns to me but are the ones you give stars to.

I wonder if an index fund is still best or is this market far from efficient?

-- posted by KirkL

Top 4. Jun 14, 1999 11:36 AM

» Happy - REIT

Kirk, you might check out Western Investment Real Estate Trust. This San Francisco company was founded many years ago by Chet MacPhee. Chet who was a friend of mine, was Chief Admin. Officer of SF many years ago. A more honest or experienced out fit, you will not find.

His son runs the business now.

Are you thinking of REIT's as an inflation hedge?

In periods of low inflation, REIT's do not do so good. Naturally I am talking here about equity REIT's.

-- posted by Happy

Top 5. Jun 14, 1999 11:49 AM

» JenL_3 - REIT Q/A

These posts copied from the "Ask Rande" thread:

Author: BillR_5
Date: June 12, 1999 7:52 PM
Subject: Rande

If REITs and sm. caps are screaming so loud, why aren't you weighted in that direction? I'm thinking of selling my Fido Growth and Income in my IRA (10 years) to buy REITs. My IRA will consist of Fidelity Low priced stock, Fid. High Income Bond, and the REIT. - No large caps. Of course, I have VTSMX and others outside the IRA.

Author: RandeS
Date: June 13, 1999 9:51 AM
Subject: Bill,

Bill,

I'm not one to overweight particular sub-asset classes in any given time period. I am more inclined to over or underweight equities in general during short-term buying opportunities IF the situation clearly (in my mind) warrants. I point out the relative attractive valuation levels for small caps and REITS as a way of reminding us that believing in an uninterrupted continuation of recent history is a classic mistake unsophisticated investors make all the time. That's not to say I would necessarily advocate overweighting the smalls or the REITS, just that I would not recommend foresaking them in favor of what has worked in the recent past. My main point is that with braod diversification you don't need to play this game at all. By including all major asset classes in prudent proportions, you will not garner the best return in any one time period, but over the long haul you will do as well as anyone with a lot less ups and downs over the interim.

Rande Spiegelman

Author: BillR_5
Date: June 13, 1999 7:15 PM
Subject: REITs

Rande,

While we're on the subject, how do you feel about reits now? What % of your portfolio do they comprise? What is the best vehicle (stocks, funds, indexes) to own real estate? I'm thinking of it for my IRA so the income is tax deferred.

Thanks, Bill

Author: RandeS
Date: June 14, 1999 6:32 AM
Subject: Bill,

Bill,

I don't own any REITS right now (my portfolio is a bit on the aggressive side, but I am taking a serious look at REITS now), but feel they are a screaming buy at this time (on a relative value basis) for those looking for some additional balance and diversification in their portfolios. Going forward, they may provide continued additional diversification and added return if large-cap stocks do slightly underperform their long-term historical norm as I expect over the next 10 years.

REITS were on fire a few years back, but have suffered in the last couple of years along with small caps as the big cap stocks have taken away most of the investor cash flow. REITS, a completely separate asset class, are closer to a fixed-income proxy than an equity proxy, though they make a nice substitute for equity exposure right now, in my opinion, for value-oriented risk-averse investors. My first choice for REITS would be the IRA, given their income-oriented nature. Still, at current levels there may be a good chance for capital appreciation as well. Impossible to come up with a universal percentage weighting, but if I were to include them in my portfolio right now I would be looking at 5-10% of total assets.

Rande Spiegelman

-- posted by JenL_3