Be wary of investing in a service/gas station
Thanks to high gas prices, gas stations and their owners are struggling.
While this may seem counterintuitive, gas station customers are putting less gas into their vehicles in each visit, are using their credit cards more often (and the gas station owner pays the credit card’s fee), and they have less cash left after pumping their gas to spend in the convenience store.
An investor underwriting a gas station should be wary: future cash flow could head down if gas prices remain high.