Trying to figure out the stock market: buy, sell, buy, sell?!?!
Stock Market
Naturally, you could buy Amazon shares today for 236 times earnings which means if you owned the entire company you would break even in 236 years! The stock market has been great; however, the challenge is predicting when the bear market will show up. Unfortunately, the stock market’s movement reacts to emotion as much as changes in a company’s financial performance. It is difficult to understand the correlation between a company’s stock price and its financial performance. Many times, factors unrelated to a company’s financial performance, such as, our President’s comments, terrorist activity, warfare speculation, etc., influences its stock value. Also, it appears that investment software has as much or more influence on a company’s stock price than its CEO.
The formula is very simple:
- Hope that you buy the right stock at the right price.
- Hope that the company’s management makes good decisions.
- Hope that there are no negative changes to the industry.
- Hope that the analysts are accurate in their projections about the company’s future revenue.
- Hope that there is no negative publicity and hope that the world is stable.
- Hope that the emotional factors that negatively effect the stock market don’t come into play while you own the stock.
- Lastly, hope that you’re lucky in selling the stock at or near the top of its highest stock price.
Multi-Family Real Estate
Whereas, in multi-family real estate the opposite is true. The performance and management of the properties almost solely impacts the market value and returns for its investors. We utilize proven acquisition strategies, management and operational efficiencies, and exit strategies to control a property’s market value. We do not recreate the wheel. Our game plan is as follows:
- We identify properties that are managed inefficiently by humans,
- We apply leverage in the acquisition to get the best entry price,
- We utilize proven management principles to improve operations,
- We understand that maximizing net operating income will increase the market value,
- We’re smart with broker relationships, and
- We know the right time to sell, when the real estate is at the top of the property’s market value.
Ultimately, we control the investment returns by improving the property, increasing rents, controlling costs and improving occupancy rates. It’s really that simple.
If you are evaluating properties or considering making a real estate investment, you can learn more by reading this report, http://bit.ly/2HPo4Ue, or contact Spencer or Craig at (913) 324-5900 or www.ApartmentVestors.com. You can also schedule a non-obligation, free, 15-minute portfolio consultation: http://apartmentvestors.com/portfolioconsultation