Looking past short-term volatility is easier said than done. This week, established financial publications have produced content ranging from pumping high-flying tech stocks over the weekend to concerns about a total collapse by Thursday. Let’s be clear, the market is driving the headlines because the headlines generate the site traffic.
Nobody knows what the ultimate impacts of the current shock are going to be, and whether it will quickly abate and supply/demand simply rebound to prior levels, or whether there may be longer term ripple effects for the global economy.
From our standpoint, we’re comfortable operating in any environment. Why?
- We have always invested with downside outcomes at the forefront of our underwriting.
- We generate a majority of our revenue from established companies with strong financial wherewithal.
- We’re no fans of excessive portfolio leverage.
So it’s time to talk the talk when it comes to long-term investing, and that (quite literally) means walking the walk. Go for a stroll in the neighborhood, read non-market related materials. Our human brains are all too susceptible to being overwhelmed by negative stimuli.
The stock market selling crescendo may reach a peak today, tomorrow, or a year from now. That’s not our focus. Our focus is to:
- Maintain occupancy during any environment.
- Exhibit financial flexibility to capitalize on weak markets.
- Go generate a reasonable return over the long-term.
As always, feel free to reach out to us any time with your own thoughts.
Eliot Bencuya is the co-founder and CEO of Streitwise. Eliot has extensive experience identifying, underwriting, and executing value-add real estate investments.
Prior to forming Streitwise, he was a Vice President of Acquisitions for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for originating, underwriting, structuring and executing transactions in the Pacific Northwest, Northern California and Midwest regions. Mr. Bencuya also held positions at Sovereign Investment Company (a subsidiary of the Marcus and Millichap Company) and the investment banking division of Merrill Lynch & Co. He holds a Bachelor of Arts degree in Economics and International Studies from Yale University, and a Masters of Business Administration degree from the Haas School of Business at the University of California, Berkeley. Mr. Bencuya is a member of ULI.