Prediction: 2 Stocks That Will Be Worth More Than AGNC Investment 10 Years From Now
A decade is a very long time on Wall Street, but I'm confident in my thinking that AGNC Investment's (NASDAQ: AGNC) shares will be worth less than those of Prologis (NYSE: PLD) and Rexford Industrial (NYSE: REXR) in 10 years. Here's why I believe investors who want a combination of income and capital appreciation will likely be better off with these two property-owning real estate investment trusts over mortgage-focused AGNC.AGNC Investment is a mortgage REIT. It buys mortgages that have been pooled together into bond-like securities. It collects that difference between the yield on the securities it buys and its operating costs, which includes interest expenses since leverage is a key part of the business model. In some ways, AGNC Investment is more like a mutual fund than a company.Continue reading
A decade is a very long time on Wall Street, but I'm confident in my thinking that AGNC Investment's (NASDAQ: AGNC) shares will be worth less than those of Prologis (NYSE: PLD) and Rexford Industrial (NYSE: REXR) in 10 years. Here's why I believe investors who want a combination of income and capital appreciation will likely be better off with these two property-owning real estate investment trusts over mortgage-focused AGNC.
AGNC Investment is a mortgage REIT. It buys mortgages that have been pooled together into bond-like securities. It collects that difference between the yield on the securities it buys and its operating costs, which includes interest expenses since leverage is a key part of the business model. In some ways, AGNC Investment is more like a mutual fund than a company.
