Looking past short-term volatility is easier said than done. Community-driven stock market volatility has been hard to ignore this week, with several notable stocks more than doubling in value overnight and then promptly plummeting. Video game retailer Gamestop, movie theater company AMC, among others are the stars of this short-squeeze mania. The volatility has been so unusual that brokerages have now placed pauses on trading.
Nobody knows what the ultimate impacts of this community-driven stock volatility will be, and whether it will quickly abate and supply/demand simply rebound to prior levels, or whether there may be longer term ripple effects on blue chip stocks and eventually the global economy.
We are 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 DO NOT use 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.
Stock valuations may change dramatically day-to-day. Such fluctuations are irrelevant to our process. Our focus is to:
- Maintain occupancy in any environment.
- Exhibit financial flexibility to capitalize on weak markets.
- Compound returns at an attractive rate over the long-term.
As always, feel free to reach out to us any time with your own thoughts.
Mr. Karsh is CEO and Co-Founder of Streitwise and Tryperion Holdings.
Prior to forming Streitwise, Mr. Karsh was an Acquisitions Analyst for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for underwriting, structuring and executing value-add and opportunistic transactions. He holds a Bachelor of Arts degree in Political Science from the University of Pennsylvania. Mr. Karsh is a member of ULI and is also a Real Estate & Construction member of the Jewish Federation of Greater Los Angeles.