CBL & Associates Properties, Inc. [CBL] Stock Forecast

Warren Buffett and Charlie Munger emphasize the importance of staying within one's circle of competence in investing. The concept is likened to a baseball analogy, where waiting for the right pitch in the right location leads to success. We share personal examples of straying outside of a circle of competence, resulting in financial losses. And we share some ideas on a few REITs as well.

REITs can be very rewarding investments. But they can also lead to large losses if you pick the wrong ones. I highlight 5 mistakes to avoid at all costs.

REITs are now very opportunistic. But not all REITs are worth buying. I give tips that you should help you avoid painful losses.

The REIT sector declined for the 4th consecutive month with a -2.50% total return in May. Small cap REITs (-1.02%) outperformed in May by averaging the most modest negative total returns. Large caps (-4.64%) underperformed their smaller REIT peers. Only 30.38% of REIT securities had a positive total return in May with only 36.65% in the black year to date.

With recent distress across office markets seizing the headlines, Mall REITs are no longer the "Problem Child" of the REIT sector, particularly after weaker players and lower-tier malls closed shop. Following three years of rental rate and occupancy declines, the supply-demand dynamic has recently favored retail landlords, rewarding many retail REITs with some long-elusive pricing power.

REITs can be very rewarding. But they can also be very punishing if you pick the wrong ones.

My REIT portfolio has materially outperformed over time. But I have at times also lost my money. My biggest loser cost me over 90% of invested capital.

U.S. equity markets were mixed on a choppy week as investors readjusted expectations for inflation and interest rates following data indicating an uptick in economic activity and persisting price pressures. Posting its first back-to-back weekly declines of the year, the S&P 500 slipped 0.2% this week, but other major benchmarks fared better. The Mid-Cap 400 and Small-Cap 600 both gained.

The "new" CBL & Associates has been out of bankruptcy for over a year now and healthy enough to start a regular dividend once again. CBL's plans for redevelopment include expanding beyond its historical focus on shopping malls, and it is making small forays into hospitality and health care.

Some real estate investment trusts recently cut their dividend. I think there will be a few more REIT dividend cuts in the coming year.

CBL & Associates Properties, Inc. is a US stock , located in Chattanooga of Tn and trading under the symbol CBL

CBL & Associates Properties, Inc. stock price is $23.33 today.

Yes, CBL & Associates Properties, Inc. is a publicly traded company.