No. of Recommendations: 8
I, for one, fully understand why I focus on preferred stock, many in reits, now doing so since the 2007-09 financial crisis, so I am far from a novice in this area, and am vert cognizant of their risks (thank you very much) as you outline (although you do not argue the other side re: their benefits when compared to common stock investing), and feel very comfortable that the risks are acceptable to me. I have been financially fortunate in these past 5 years with this investing emphasis, but have always approached this from a continuing-to-be-educated standpoint, always reading prolifically from pro and con viewpoints, some of whom I consider investment sages, as I have bought and sold PS's during this time period. There is absolutely no risk free investment out in the universe, certainly none in the common stock investing area area of reits as many on this board invest in, just as sitting on all cash in lieu of investing has its own risk. You will find a number of savy investors who might well differ with you on the benefits of PS investing, whether in reits or non-reits, and who have a defensible track record to reinforce their investment emphasis. I would say after 5 years, including the terrible 07-09 downturn, the Hotel California is more like the Waldorf Astoria to me. I believe I will stay a while longer.
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