Quote:
Originally Posted by stoutboy
Even after adjusting for inflation, the returns of the market outpace every other category, particularly real estate. Starting a business entails significant risk, not the least of which that 70% go kaput within five years. Most people would be better off indexing.
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The issue with the stock market is that you can't really leverage. With real estate 5x leverage is common.
This means when property goes up which it historically has over long periods of time you're returns are going to be much higher. With FHA financing (owner occupied) there is even the option of 20x leverage.
Also that is true that many businesses fail..but if you study successful entrepreneurs you will see that they did often have failed businesses early on..but they continued starting businesses , learned from their mistakes and eventually became successful. So I don't think it's a great idea to think "I could start a business..but it will probably fail...why bother?"
But that is true I am sure not everyone is cut out to be a business owner.
I agree with boner that one has to keep their eyes open for opportunities and seize them.