CHAPTER 6

A History of REITs and REIT Performance

“If past history were all there was to the game, the richest people would be librarians.”

—Warren Buffett

As investors, we want to be equipped with as many analytical tools as possible. Knowing how a particular type of investment has behaved in the past may not be a sure predictor of the future. However, history can certainly help us to understand the investment merits and characteristics of particular asset classes.

How have REIT stocks behaved during the more than 50 years since they were conceived? Like a child, like a teenager, and like an adult, depending on which stage of their development we examine. We'll take a look at those developments—specifically, how REITs performed in their infancy, ...

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