Ernst: Investing in Main Street over Wall Street pays dividends of all kinds
As anyone invested in the stock market has learned this year, Wall Street can present its share of challenges for investors. At Ernst Capital Group, we believe it’s always a good time to consider investing locally, but there are especially strong benefits during periods of volatility like 2020 has presented.
Here are just a few reasons to consider investing locally as part of your portfolio.
It’s simplified and strategic
Ernst Capital Group is based in Sioux Falls. Our offices are downtown. Our team lives here. When we invest with local real estate developers in Sioux Falls or other regional markets like Des Moines, we know them personally. That simplifies our approach to investing, and our investors’ relationship with us. We know the markets, we know the players, and we’re investing in projects and properties we know. That gives our investors confidence – and they know we’re only a phone call or meeting away if they ever have questions. When dollars flow to Wall Street, think of all the hands that touch them. There are many entities involved – even if you don’t see or know them – that ultimately bring associated costs. We keep it simple.
There’s less uncertainty
With Wall Street investments, one day of bad news can cause an enormous drop in values. We certainly saw that earlier this year with COVID-19. Pricing is subject to day-to-day volatility, and it can change instantly. While our investments aren’t completely insulated from market volatility, they also are not directly correlated to what’s happening on Wall Street. Of course, we had concerns with COVID-19, too, as we wondered whether tenants would be able to continue paying rent, but we knew it would be short-lived. The long-term outlook – our strategy – didn’t change. We’re able to look for the right market timing to sell our assets. We’re always doing that. We’re disciplined about finding favorable timing. For investors, that means capital might not be readily available for emergencies, but if this is a fit for your situation, it’s quite beneficial in the long term.
Dollars stay local
And finally – maybe most critically – your dollars stay local. If you’re more confident in our local economy than in the national economy, this is an investment strategy to consider. Our investors enjoy helping build the communities where they already have invested personally in the form of home ownership and sometimes business ownership. By supporting the growth of multifamily and other commercial projects in places like Sioux Falls and Des Moines, you generate a vibrant development community and ultimately keep the cost of living down. Communities that don’t have supply see huge rent increases. But in our markets, steady population growth and reliable development activity help maintain stability. So many of our investors are philanthropic. They support an enormous number of causes throughout our community and beyond. Investing with Ernst Capital is a logical extension of that. These investors already have an affinity for their community, and this allows them to help power its local economy.
Some of our investors also just love driving by and seeing a building under construction. They love checking on the progress. And it’s rewarding to them to see that, and it’s rewarding for us that they truly are so invested in so many ways.
Our business model offers so much more than looking at a number on your brokerage account. If you’d like to learn more, please visit us at ernstcapitalgroup.com.