I Told You, When You Land On Boardwalk, You Should Buy It

PEB is up over 36%. I told you, when you land on Boardwalk, you should buy it!

Summary

  • Boardwalk is located between GO and Luxury Tax spaces and it pairs with Park Place to complete the “Royal Blue” property set.
  • When I land on Boardwalk I always buy it, that is, assuming that I have the cash on hand.
  • PEB is up over 36%. I told you, when you land on Boardwalk, you should buy it!

Back in March I explained that I love playing the board game Monopoly – it’s just part of my DNA. Just like in the real world, utilities and railroads are excellent investments, particularly when owned together, but they just don’t provide the best overall returns. The best way to get rich is by owning REAL ESTATE!”

I went on to write,

…everyone wants to own the hotel on Boardwalk, the most expensive property on a standard Monopoly Board and the highest in rent revenue. The name (Boardwalk) was inspired by the Atlantic City Boardwalk in New Jersey and it is typically the most desired property in the Monopoly game.
Boardwalk is located between GO and Luxury Tax spaces and it pairs with Park Place to complete the “Royal Blue” property set. Although it’s the most expensive property to rent on the board, it’s cheaper to upgrade than any of the Green Properties because there are only two Royal Blues instead of three. For every hotel rent on Boardwalk, the owner receives $2,000.”

I went on to write that “when I land on Boardwalk I always buy it, that is, assuming that I have the cash on hand. That’s my same strategy in REIT-dom and now you can see why I titled this article When You Land On Boardwalk, You Should Buy It.”

Since that time, shares in Pebblebrook Hotel Trust (NYSE:PEB) have popped (PEB shares +36.4%):

Let me be the first to explain that I am not a market timer. I typically invest in REITs that I plan to own for at least one or two years, and I generally look for companies that I can own for much longer.

Some investors were fearful of investing in the Lodging sector (much like Tanger (NYSE:SKT) today), but I knew that I could generate favorable results by “going against the herd” and focusing on the highest-quality REITs within the sectors that could outperform.

In the investing world, I consider Benjamin Graham one of the most astute wizards of all time, and his words provide timeless relevance as it relates to the REITs inside of my Durable Income Portfolio:

You are neither right nor wrong because the crowd disagrees with you. You are right because the data and reasoning are right.”

Pebblebrook Is Uniquely-Positioned

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