Investment Thesis

Realty Income (O) remains my largest holding of an individual stock. It is a real estate investment trust that owns over 6,500 net lease properties across the United States and the United Kingdom. The “net lease” part indicates that all or most of the property-level expenses — taxes, insurance, building maintenance — is contractually handled by the tenant rather than the landlord.

From late 2004 to mid-February, 2020 (before the onslaught of COVID-19), O has performed phenomenally well for its shareholders, edging out its closest net lease peers and blowing away the REIT market as a whole:

Chart
Data by YCharts

This excellent past performance goes a long way in explaining why Realty Income Is My Largest Holding, as I explained in a May, 2020 article on Seeking Alpha.

But, going forward, I don’t plan to add any more to my position unless the share price falls back to

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The U.S. lacks a key ingredient that helped propel it to economic dominance in the 20th century: productivity gains from higher education. Figuring out why could help influence the economy’s long-term trajectory once it emerges from the coronavirus crisis.

In 2009, President Obama, worried about the economy’s global standing, set a goal for the U.S. to have the world’s most-educated workforce by 2020.

The share of U.S. workers with college degrees has grown significantly, even if the country fell short of his goal. But those gains haven’t translated into a substantial productivity boost as Mr. Obama and economists hoped.

Rising education levels—first in high school, then in college and graduate school—helped fuel strong economic growth in the latter half of the past century. In 1910, just 14% of Americans age 25 or older had a high-school diploma and just 3% had a bachelor’s degree, census data show. By 2000, 84%

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