A Life Cut Short, a REIT on Sale: What's the Real Connection?
The news cycle is a relentless beast. One minute, we're dissecting earnings reports; the next, we're reading obituaries. Usually, these worlds don't collide. But this week, they did, at least for me. An obituary for Thomas Farrell of Alexandria, Virginia appeared alongside analysis of Alexandria Real Estate (ARE) stock. It's an odd juxtaposition, but one that prompts a deeper look.
The Human Cost
Thomas Farrell's obituary paints a picture of a vibrant life tragically curtailed. A Marine, a sportsman, a man of faith—cut down at 33 by schizophrenia. The obituary notes the disease "reshaped his path in ways that demanded extraordinary strength and humility." It's a stark reminder that behind every data point, every stock ticker, there's a human story.
The requested donations to the Treatment Advocacy Center (TAC) are telling. TAC focuses on improving the treatment of severe mental illness. It suggests Farrell's family understood the systemic failures in addressing such conditions (failures that, frankly, are often ignored until a tragedy occurs).
The REIT Opportunity
Meanwhile, on the financial front, Alexandria Real Estate (ARE), a REIT specializing in lab space for the life sciences, took a beating after its Q3 results. One analyst, Hawkinvest1, saw this as a buying opportunity, arguing that the selloff was overblown. He cites his own beneficial long position in ARE shares as part of his analysis. (It's always worth noting when an analyst has skin in the game.)
The analyst's rationale centers on the idea that the market overreacted to short-term concerns. But here's the rub: REITs, especially those in specialized sectors like life sciences, are inherently long-term plays. They rely on sustained investment in research and development. A society struggling to care for its most vulnerable—those battling severe mental illness, for example—might also struggle to prioritize long-term scientific investment.
Is there a direct, causal link between Farrell's tragic death and the prospects of Alexandria Real Estate? Of course not. But there's a correlation—a reflection of societal priorities. A society that underfunds mental health treatment might also be prone to short-sighted financial decisions.
One might ask: Where does the focus truly lie? Are we more reactive than proactive?
Parsing the Disconnect
The disconnect between these two narratives—a life cut short by mental illness and a REIT facing market headwinds—highlights a fundamental tension in our data-driven world. We excel at quantifying and analyzing market trends, but we often fail to account for the human element, the underlying societal factors that ultimately drive those trends.
I've looked at hundreds of these stock analyses, and the almost complete lack of any commentary on the broader societal context is, frankly, disturbing. It's not that analysts are heartless; it's that the system incentivizes a narrow focus on quarterly earnings and technical indicators.
The analyst's disclosure is a good starting point, but it doesn’t address the broader ethical considerations. What's missing is an acknowledgement that financial performance doesn't exist in a vacuum. It's influenced by—and, in turn, influences—the well-being of society as a whole.
A Society's Values, Reflected in its Portfolio
It's easy to dismiss the juxtaposition of an obituary and a stock analysis as a coincidence. But sometimes, coincidences reveal deeper truths. In this case, it's a reminder that our investment decisions are a reflection of our values. And if we're not careful, those values can become tragically skewed.
