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Safest way to go? Real Estate? And what guarantee is there the property value will rise? And if you need to sell the property how long will it take to sell? And if you have no desire at all to be a landlord or manage the property and deal with tenants, then what?
Stocks are making my small bank account grow into a big one. Definitely not just for people that have 10 million or more.
Exactly. This is the same opinion I heard 30 years ago (buy real estate, buy real estate), and I am most certainly glad I stuck to a balanced portfolio and investment strategy. The market has done me quite well over 30 years. Frankly I'm on target for a nice retirement. S.S. $ is just gravy to me now.
Also- having been involved in commercial finance for over 30 years, I can certainly attest that property ownership is not a panacea for wealth creation. I know quite a number of successful business persons primarily involved in real estate, however the best of them are also in construction or trades and can manage those assets. I've seen more small time property investors get their arses handed to them because they couldn't handle the management aspect.
Buffett didn't become one of the wealthiest men in history by investing in real estate or gold, fusion.
You can have the hard assets ... I'll stick with my substantial, and much more easily managed portfolio of funds and stocks...
Both have their merits. I believe in both actually (rather than just diversifying in stocks, diversify across asset classes into real estate).
But since you mention B, he has said the best investment he ever made was his house in Omaha. Having a great big stock portfolio definitely sounds like fun, but many can get more enjoyment out of living in and around your $ (real estate).
Real estate is for the strong and the prosperous. Go tell that to the ranchers in Montana.
Some of us prefer what exists beyond the legal sphere of laws and digits on a computer screen. Hard assets. Oil. Timber. Gold. Silver. Real Estate. This country could cease to exist, but we would still have these things unless someone took them from us. A few misplaced papers, or an asset freeze by some judge and your assets go poof. Disappear because they never truly existed in the first place.
Real estate can be taken away, too, using a variety of means. It's not that far fetched.
Raising cash in a down market is far less likely if you own real estate than stocks.
My experience is exactly the opposite. Rents do not always increase, and it's painful to have negative cash flow on multiple properties. Illiqudity is not a benefit in this situation. Also, owning real estate becomes problematic if you have to move for a job. Stocks do not care where I live, and they never ask me to send in money so they can keep operating.
Quote:
Originally Posted by concept_fusion
Stock certificates simply aren't useful for anything beyond appreciation, if that occurs.
people have different resources individually through life at different times . so how you buy an asset can't be part of the equation if you are comparing performance .
it is like no one ever gets the return of an index fund .
we all add money , sell , rebalance at different times as well as have different buy points so the how you aquire an asset can't be in the equation of comaring assets .
Yes it can, and it should, because you can't borrow on the same terms against a stock investment that you can on a house. There's no such thing as a 30-year fixed margin loan with zero margin call risk as long as payments are made on time!
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