It Takes Only The Smallest Of Changes To Shatter This REIT's Equilibrium

VEREIT is a Net Lease REIT, which means the company owns free-standing buildings leased to a variety of retail, restaurant, office, and industrial tenants. As of the latest quarter, the company owned 4,105 properties located in 49 states, as well as the District of Columbia, Puerto Rico and Canada.

Summary

  • "Look at the world around you. It may seem like an immovable, implacable place. It is not. With the slightest push - in just the right place - it can be tipped." - Malcolm Gladwell.
  • "In the end, Tipping Points are a reaffirmation of the potential for change and the power of intelligent action." - Malcolm Gladwell.
  • "It takes only the smallest of changes to shatter an epidemic's equilibrium." - Malcolm Gladwell.

I’m a big fan of Malcolm Gladwell’s book, The Tipping Point: How Little Things Can Make a Big Difference.

If you haven’t read the book, it’s essentially a guide of the "mysterious social changes that mark everyday life." As Gladwell states, "Ideas and products and messages and behaviors spread like viruses do." He cites a few examples such as the rise in popularity and sales of Hush Puppies shoes in the 1990s and the steep drop in New York City’s crime rate after 1990.

Gladwell explains:

“Just as a single sick person can start an epidemic of the flu, so too can a small but precisely targeted push cause a fashion trend, the popularity of a new product, or a drop in the crime rate. This widely acclaimed bestseller, in which Malcolm Gladwell explores and brilliantly illuminates the tipping point phenomenon, is already changing the way people throughout the world think about selling products and disseminating ideas.”

Although Gladwell did not apply the use of the term “the tipping point” to REIT investing, I intend to apply the same principle today to the Net Lease REIT, VEREIT, Inc. (NYSE:VER).

“Look at the world around you. It may seem like an immovable, implacable place. It is not. With the slightest push—in just the right place—it can be tipped.” - Malcolm Gladwell

Rebuilding the Empire

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