On Tuesday, the 11th of November, we had our second meeting of the academic year. Unfortunately, we had to convene online due to the newly implemented restrictions of meeting in person. However, with more than 25 people showing up, it was bound to be a night with fruitful discussions.
We started off with the macroeconomic overview, with a lot of news which needed coverage. We talked about a potential Green Bull Run, a gun stock rally and about the relationship between stock market returns and the American elections. Furthermore, we talked about Biden’s win and of course the positive vaccine test results by BioNTech and Pfizer. Looking forward, we will have a lot to talk about at our next meeting, as we follow COVID-19 developments, Brexit negotiations and of course any other macroeconomic developments.
Next up were a sell pitch on STAG Industrial and a buy pitch on STORE Capital. Both presentations had convincing arguments and were very well thought through. Even though both stocks are REITs, we concluded on our investment thesis that STAG Industrial would underperform versus STORE Capital. The latter has seen strong growth over the past few years, has strong management in place and has proven to be resilient during the COVID-19 pandemic, with tenants not defaulting on their rent payments as a result of STORE’s unique way of evaluating investment risk and asset class composition. Additionally, we think that REITs will be one of the next big beneficiaries once lockdowns get lifted. After voting, we decided to swap out STAG Industrial for STORE Capital. Both the sell pitch from Clemens Jongen and the buy pitch from Joràn Koenders were very interesting. Because of the in-depth research Joràn has done for his presentation, we decided he is investor of the month. Congratulations!
It was great to see so many of you and we hope to welcome you (in person) at our next meeting on Tuesday, the 15th of December!