Episodes

On this week's Stansberry Investor Hour, Dan and Corey welcome Brad Thomas to the show. Brad is the founder of our corporate affiliate Wide Moat Research. There, he serves as editor for the Wide Moat Daily, The Wide Moat Letter, the Intelligent Options Advisor, and the High-Yield Advisor newsletters. Brad joins the podcast to share some of his three decades' worth of experience in real estate.

Brad kicks things off by describing his background in real estate, how he lost almost everything during the Great Recession, and how his experience helps him with his job today researching companies. Next, Brad debunks the three largest perceived overhangs for real estate investment trusts ("REITs"): debt maturities, rising rates, and the "dead" office sector. As he explains, they aren't as big of factors for equity REITs as many believe. And in particular, there are some gems that investors can find within the office sector...

The office sector has really not generated a whole lot of growth over time... Now, I do like some of the specialty sectors in [the office space]. I like medical office buildings, for example. Those are very sustainable business models. Everybody has to go to the doctor. So these doctors are going to show up, and they're going to pay rent.

Next, Brad talks about the growth potential for many specific REIT sectors, including cannabis, cell towers, data centers, and casinos. He throws out a few stock names along the way, and also explains what influence technology has had on REITs and their operations. This leads Brad to share his "trifecta approach" for diversifying between the three main beneficiaries of technology advancements. And he gives several reasons why investors should even bother to get into REITs right now...

Today, more than ever, you're seeing such a tremendous opportunity because of this negative sentiment – again, rising rates and debt maturities and office buildings and all those things that are in the news every single day... From a valuation perspective, it's a very attractive setup... I really believe [Donald Trump's] four years are going to be really good in general terms for REITs and commercial real estate.

Finally, Brad points out that most companies have real estate components. So understanding how business is created from the ground up gives him and his team at Wide Moat Research an advantage. He emphasizes that Wide Moat's main goals are principal preservation and finding "sleep well at night" stocks. Brad then finishes by sharing which sectors outside of real estate he finds most attractive today...

I like homebuilders... Railroads is another sector that can be interesting... I like the insurance space. I think that's a great place to invest... Energy is definitely a place where we'd like to invest capital.