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Strategies & Market Trends : Value Investing

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To: geoffrey Wren who wrote (13241)10/26/2001 11:38:37 AM
From: Paul Senior  Read Replies (1) of 78717
 
Geoffrey Wren: REITs.

My opinion is you might want to solidify some of your ideas before accepting specific recommendations to review.

1. REITS are in diverse categories. You will need to figure if you will concentrate within a category or diversify among categories to spread risk.

2. You are coming late to the party. Buys aren't so obvious (if they ever were) now.

3. Some REIT dividends include a significant component called "return of capital". Which means that that portion is not taxable if the REIT is held in a taxable account. But if the REIT is held in an IRA, you could be paying tax on that portion. (since everything that comes out of an IRA is taxable.) I'm saying it's possibly not an optimum decision to just simply place all high-dividend REITs in a non-taxable account.

Imo, if you will go to Richard Baron's thread called "REITS - Buying 1 - 2 weeks before going ex-dividend" and seek suggestions there, you will be well served. You can get good sources of information and good suggestions for REIT categories to consider plus specific stocks too. (Don't let the thread name dissuade you. Many, if not most of the guys there seem to be long-term buy and holders.)

just my two cents,
and I've been wrong many, many times

and congratulations on having a nice run in GNSS. Seems to be one of the few tech stocks that's had such an ascent lately.
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