Image Credit: Alex Nabaum
By Jason Zweig | May 22, 2020 11:00 am ET
What an asset is worth depends on who owns it — and how.
If you own publicly traded real-estate investment trusts, your REITs are worth an average of 21% less than they were at the end of 2019. If, however, you hold the TIAA Real Estate Account, a $25.2 billion variable annuity invested mostly in private assets, your stake is down only 1.1% for the year.
These differences highlight the gap between how public and private markets work. The common fund abbreviation NAV, which stands for “net asset value,” in reality often signifies “near asset value.” That can be the case whenever a fund owns nontraded assets — not just private real estate, but private equity, venture capital and whatever else doesn’t have a daily market value.…
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For further reading:
Benjamin Graham, The Intelligent Investor
Jason Zweig,The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
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