The ‘Can’t Miss’ Investment I Missed

Dammit. I wish someone had pulled me aside at a dinner party when I was in my early 20’s.

And told me the two words that could’ve changed my life. Self-storage. Apart from AAPL, I double dog dare you to find a better investment.

From this week’s Wall Street Journal:

“Self-storage pulled ahead of other property types in the reopening trade as the real-estate business rebounded this year during the easing of pandemic restrictions.

The storage facilities around the country have brought the biggest returns to investors in public real-estate stocks this year. Many people moved, and for those who stayed put, a desire to have more space in their homes because of remote learning and working also spurred demand for self-storage.

As of June 30, total returns from self-storage real-estate investment trusts reached 36%. . . . Over the same period, the FTSE Nareit Equity REITs Index gained 22% and the S&P 500 climbed 15%.

People generally haven’t been able to tame their consumerism, increasing the need for storage space. The self-storage industry sees demand when people’s lives are disrupted, such as relocating for a new job, marriage, divorce and education.

‘Self-storage thrives when people experience change, and Covid disrupted norms across all generations,’ said Drew Dolan, principal at DXD Capital, a self-storage developer and investor. He added that many customers who needed self-storage in 2020 were first-time customers.

Operators moved quickly during the pandemic to offer customers more choices for reservation and move-ins, including online rental agreements and kiosks that limited contact with other people.

‘What used to be a 45-minute transaction can now be a six-minute experience,’ said Natalia N. Johnson, chief administrative officer of Public Storage, in a recent presentation to investors.” 

“People haven’t been able to tame their consumerism.” My vote for understatement of the year, decade, century. I should’ve bet big on American consumers not taming their consumerism years ago. I coulda, shoulda made bank on your neighbors’ conspicuous consumption.

No it’s not too late, but the crazy recent gains have to moderate, don’t they?

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