Totally agree with you about the purpose of a job isn't to make you feel good about yourself, it's to make money. My dad always has said "you can do anything you want to do in life, as long as you don't suck at it"
Thank you for the feedback. REITs are really complex vehicles which we have a hard time understanding ourselves. So, we might just do a "Simple Guide to Finding the Best REITs" or something like that.
How about companies supplying the supporting infrastructure to data centers ..power management, HVAC...also considered picks and shovels type investments to support data center boom?
We like our REITs to have more of a track record than just five years. That's because we need to rely on those income streams going into the future. Certainty is as important as yield.
I don't think data center reits have the same level of risk as tech stocks, since not all their tenants are tech companies. You gave the example of Wal-Mart, McDonald's, etc. The length of contract would also help stabilize revenue. And I don't think these data center reits would get into an rental agreement with every tech startup out there without checking their credit worthiness to be reasonably certain they won't default.
True, but how correlated would data center REITs to a tech stock downturn? Hard to say. Yes, length of contract certainly helps. As for credit worthiness, the almighty dollar speaks. Look at how many firms went pear-shaped in the dot bomb times that appeared to be more than credit worthy.
@@Nanalyze moderately correlated. data center REIT has been growing fast the last 20 years (thanks to retail e-commerce). And ecommerce will keep growing every year. There is also growing demand for mid to large size companies to host their redundant data centers in this data center REIT providers to save costs. Yes, the current growth is also helped by rapid AI infrastructure build up. I am not too worried with the customers for data center REITs. Take Equinix REIT for example. They have 10,000 customers worldwide and 44% of them are mid to large size companies like Ebay, Facebook, Google (yes, they host some of Google cloud infrastructure), AT&T, Nokia, Hershey and Apple. I do not think we need to worry for these companies going bankrupt during recession. They still take some hit during economy downturn but not as bad as overvalued big tech stocks. Just look at their beta. Around 0.6 to 0.8 (less volatile) compared to average of 1.5-1.7 (more volatile) for tech stocks. I have been managing data center for 15 years and I am familiar with these data center REIT providers.
Totally agree with you about the purpose of a job isn't to make you feel good about yourself, it's to make money. My dad always has said "you can do anything you want to do in life, as long as you don't suck at it"
Really like that quote. Thank you for sharing!
Good video, strongly agree that the diversity stuff is completely out of control
It is completely out of control. Competent hiring managers disagree with these practices, yet fear for their jobs if they stand up against them.
I like these reits videos! More reits video would be nice
Thank you for the feedback. REITs are really complex vehicles which we have a hard time understanding ourselves. So, we might just do a "Simple Guide to Finding the Best REITs" or something like that.
Awesome video. I love your comment regarding a company's fiduciary responsibility and why companies hire labor ...TO PERFORM!!!!👍👍👍👍
Exactly!! We'll continue to call this BS out as we see it. Meritocracies only for the companies we invest in.
How about companies supplying the supporting infrastructure to data centers ..power management, HVAC...also considered picks and shovels type investments to support data center boom?
Good idea. Yes, we'll likely do a follow up piece that looks at this.
Great video, my only currently held REIT is VICI properties, which has held up nicely thru this downturn
We like our REITs to have more of a track record than just five years. That's because we need to rely on those income streams going into the future. Certainty is as important as yield.
I don't think data center reits have the same level of risk as tech stocks, since not all their tenants are tech companies. You gave the example of Wal-Mart, McDonald's, etc.
The length of contract would also help stabilize revenue. And I don't think these data center reits would get into an rental agreement with every tech startup out there without checking their credit worthiness to be reasonably certain they won't default.
True, but how correlated would data center REITs to a tech stock downturn? Hard to say. Yes, length of contract certainly helps. As for credit worthiness, the almighty dollar speaks. Look at how many firms went pear-shaped in the dot bomb times that appeared to be more than credit worthy.
@@Nanalyze moderately correlated. data center REIT has been growing fast the last 20 years (thanks to retail e-commerce). And ecommerce will keep growing every year. There is also growing demand for mid to large size companies to host their redundant data centers in this data center REIT providers to save costs. Yes, the current growth is also helped by rapid AI infrastructure build up. I am not too worried with the customers for data center REITs. Take Equinix REIT for example. They have 10,000 customers worldwide and 44% of them are mid to large size companies like Ebay, Facebook, Google (yes, they host some of Google cloud infrastructure), AT&T, Nokia, Hershey and Apple. I do not think we need to worry for these companies going bankrupt during recession. They still take some hit during economy downturn but not as bad as overvalued big tech stocks. Just look at their beta. Around 0.6 to 0.8 (less volatile) compared to average of 1.5-1.7 (more volatile) for tech stocks. I have been managing data center for 15 years and I am familiar with these data center REIT providers.
These REITs would just be the middle man for the middle man. Seems redundant...
For retail investors, getting the same exposure without the middle man would be impossible.