To Conquer Fear Is The Beginning Of Wisdom
- For those of you who stood by my STRONG BUY recommendation, congratulations, you have proven your skills and have proven that you are an Intelligent REIT Investor.
- Although Kimco has been a top performer since May, the shopping center REIT has seen its share of dark days.
- Benjamin Graham, said it best, “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”.
Bertrand Arthur William Russell was a British philosopher, logician, mathematician, historian, writer, social critic, political activist, and Nobel laureate. He was born in Monmouthshire into one of the most prominent aristocratic families in the United Kingdom and he was widely held to be one of the 20th century’s premier logicians. He was quoted as saying:
“Fear is the main source of superstition, and one of the main sources of cruelty. To conquer fear is the beginning of wisdom.”
Russell published a book in 1903 that was deemed to be the first comprehensive treatise on the logical foundations of mathematics written in English. It set forth, as far as possible without mathematical and logical symbolism, the grounds in favor of the view that mathematics and logic are identical. It proposed simply that what is commonly called mathematics is merely later deductions from logical premises.
That seems to be a fitting introduction to my article today, titled “To Conquer Fear Is The Beginning Of Wisdom.” But first recall the content I wrote in mid-April in which I explained:
“I am standing by my Strong Buy recommendation for Kimco Realty (KIM), and I believe that patient investors will eventually be rewarded.” In that article, I also included a quote from the legendary investor, Warren Buffett:
“During such scary periods, you should never forget two things: First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is your enemy. It will also be unwarranted. Investors who avoid high and unnecessary costs and simply sit for an extended period with a collection of large, conservatively-financed American businesses will almost certainly do well.”
For those of you who stood by my STRONG BUY recommendation, congratulations, you have proven your skills and have proven that you are an Intelligent REIT Investor. Since my article (mid-April), Kimco shares have rebounded…
Kimco is not the only STRONG BUY that has outperformed. We have 22 REITs in the “New Money Portfolio” that has returned an average of 16.5% (since May when we launched) and Kimco ranks as one of our top 10 picks (#7 actually).
Although Kimco has been a top performer since May, the shopping center REIT has seen its share of dark days, but it’s clear that sentiment has improved and as PendragonY points out, “while it’s clear that retail operations are changing, the death of brick and mortar retail has been greatly exaggerated.”
By tackling the fears head on, Kimco shareholders have been able to become wiser investors, recognizing that “rather than working from the general idea that all brick and mortar retail is doomed… it’s a better approach to look at how each company is doing”. PendragonY went on to explain:
“One must look at how its sales and profits are doing both in the near past and projected into the future. One must also look at how the company is addressing the changing retail environment.”
As Bertrand Arthur William Russell believed, “mathematics and logic are identical” and in this article, I will identify several primary catalysts that support my STONG BUY recommendation.