Stock Market vs. Real Estate

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shorty

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Saw a posting earlier today about the market going up and just wondering about guys that invest in the market. You are trusting your hard earned money in a CEO that could be pedophile, rapist, murderer or worse, a Democrat. In Real Estate you have some control. I once owned 1/3 of a publically traded company. Our "promoter" was a lying dirt bag. Twisted the truth to the point I had no idea what company he was promoting. At least in Real Estate one can see repairs are really done, screen tenants and oversee the "company." On the other hand in the market you are at the whims of a greedy broker, a self promoting CEO or worse. Also another big factor, most of the investors in the market today couldn't read a P&L if it meant life or death. They rely on the drive by media to help them make knee jerk investment decisions. Just saying.
 
shorty said:
Saw a posting earlier today about the market going up and just wondering about guys that invest in the market. You are trusting your hard earned money in a CEO that could be pedophile, rapist, murderer or worse, a Democrat. In Real Estate you have some control. I once owned 1/3 of a publically traded company. Our "promoter" was a lying dirt bag. Twisted the truth to the point I had no idea what company he was promoting. At least in Real Estate one can see repairs are really done, screen tenants and oversee the "company." On the other hand in the market you are at the whims of a greedy broker, a self promoting CEO or worse. Also another big factor, most of the investors in the market today couldn't read a P&L if it meant life or death. They rely on the drive by media to help them make knee jerk investment decisions. Just saying.
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Shorty, I respectfully disagree. While real-estate is a certainly a worthwhile investment, stocks are also a great investment tool, especially for people like me who don't have enough money to buy a piece of investment property, but are looking to invest extra savings. Stocks are also a wonderful investment tool for people looking for a more passive investment then real-estate. Here are a couple things I consider when buying stocks: 1) over rolling 10 year periods of time the SP500 (the broad market as a whole) has never lost money. 2) When you are buying a stock, you are buying a piece of a company. The short term price of that stock is driving by emotions, but the long term price is driven by earnings. 3) Pigs get fat, hogs get slaughtered.
 
caveman said:
Shorty, I respectfully disagree. While real-estate is a certainly a worthwhile investment, stocks are also a great investment tool, especially for people like me who don't have enough money to buy a piece of investment property, but are looking to invest extra savings. Stocks are also a wonderful investment tool for people looking for a more passive investment then real-estate. Here are a couple things I consider when buying stocks: 1) over rolling 10 year periods of time the SP500 (the broad market as a whole) has never lost money. 2) When you are buying a stock, you are buying a piece of a company. The short term price of that stock is driving by emotions, but the long term price is driven by earnings. 3) Pigs get fat, hogs get slaughtered.
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Most of your billionaires made their money (forget dot com, yet they are investing their earnings in RE) through RE. Me, I have been in both and I am maybe a control freak but need to be able to work an investment. In RE I can force profit but in the market all I can do is hope and wring my hands. Now you are right my friend for totally passive investments but most RE investors purchase with little or no money down and believe me, there are plenty of investors willing to put up the credit or the cash for those willing to get their hands dirty. The major problem I have in the market is what has happened over the last 10 years. So much fraud committed by the market manipulators---wall street---- that is getting real hard to believe anything that comes from their mouths and you can forget about the government watchdogs---they sleep together.

There are some sure bets in the market such as Exxon Mobile but I had a recently retired manager sell all of his stock 6 months ago for fear of the Russian acquisition and that insider info that turned out to be spot on. There is just so much the guy on the street does not know that can come back and bite him.

If I were to ever invest in a company again it would be thru seeking out someone like you that I knew, trusted and respected and see if I could give him a boost but offering an investment. I like to invest in tangibles. RE and people are tangibles .

But my friend that is why we have RED, black, yellor, white and gray SRT-10 trucks. To each his own.

By the way, hopefully Monday you will have some books on the way.
 
Ok my friend, yesterday the Dow dropped 273 yesterday on worries of global slow down. Today it jumped 274 points. Duh, what changed? By and large knee jerking children (not you) that should never have been in the market in the first place. Wonder how many of them can even read a P&L or a balance sheet. Chris buddy, the market is driven by folks that couldn't count cards in black jack much less know how a company is preforming. To dump on one rumor and buy the next day on another rumor is a horrid way to invest. Me, I just can't put my investments in the hands of irresponsible, illiterate investors. Kinda like going into the woods with guys that believe in ghosts, liable to shoot at any sound from any direction.

As I said, I can slap a coat of paint on the trim, dress up the curtains and re-carpet and increase the value substantially. By the way, will you sell me stock in your company----I do know you and most assuredly trust you.
 
i'm confused as to why you think RE is more secure (my interpretation of your posts) than the stock market.
the same types of people control the real estate market that control the stock market, just on a slightly different sliding scale.
the bottom line is neither is secure - because there's no such thing as investment security - let's be honest...
 
Every investor that I ever met and every investment book I ever read say the same thing - don't concentrate on the day to day action - focus on long term action. A lot of the "quick action" that you see in the stock market today is people trying to find a quick gamble. Some pay off but some don't. My suggestion to anyone looking at investing is read a few books for dummies on investing - not the TV host investors who write books but just a something about the basics that is more accounting based than flash (if it has guy smiling and holding money on the glossy cover pass on it). Once you know the basics do some research and invest fake money for a few month. By this I mean set a starting amount that is reasonable and select the stocks you would buy; record their value on the day that you would like to buy them and after a few months see where you would be in gains/losses.
Shorty if you like real estate better maybe you should talk to an investor about a real estate investment fund. You usually have to have enough assets to qualify to join the fund but it is the best of both worlds. My wife has been very successful in the two that she is a part of that build CVS stores and do long term leases to CVS and my father's financial advisor just got him into one that builds and leases hospitals.
 
viperhauler said:
i'm confused as to why you think RE is more secure (my interpretation of your posts) than the stock market.
the same types of people control the real estate market that control the stock market, just on a slightly different sliding scale.
the bottom line is neither is secure - because there's no such thing as investment security - let's be honest...
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History my good man, history. More millionaires have been made thru RE then the market. Plus, like I said above, RE can be forced to gain in value and the market can't. In the market you are at the whims of others and in RE one can do all sorts of improvements to enhance the value. But---to each his own. The market seems to value investors that have no real idea of what they are doing. Proof? Look at the last 2 days and tell me how much research went into the sell off and immediate rebuy. Zero---total knee jerk. The international outlook did NOT change overnight. Granted, RE does take a lot of research and elbow grease but ask the Donald how RE pays off vs. the market. Guess that is why we have RED, YELLOW and gray SRT-10's. :D
 
I prefer to invest in both. The reason is simple, diversification. Putting all of your money in one investment is foolish.
 
shorty said:
History my good man, history. More millionaires have been made thru RE then the market. Plus, like I said above, RE can be forced to gain in value and the market can't. In the market you are at the whims of others and in RE one can do all sorts of improvements to enhance the value. But---to each his own. The market seems to value investors that have no real idea of what they are doing. Proof? Look at the last 2 days and tell me how much research went into the sell off and immediate rebuy. Zero---total knee jerk. The international outlook did NOT change overnight. Granted, RE does take a lot of research and elbow grease but ask the Donald how RE pays off vs. the market. Guess that is why we have RED, YELLOW and gray SRT-10's. :D
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"More millionaires have been made thru RE then the market."

What is this comment based on? Where is this statistic from? I question it because millionaires are everywhere these days. CNN recently reported that there are 9.6 million millionaires in the US so it is not as hard as people think to get there. In fact I think with some common sense and restraint most two income upper middle class income families could make it to becoming millionaires.


" In the market you are at the whims of others and in RE one can do all sorts of improvements to enhance the value. But---to each his own. The market seems to value investors that have no real idea of what they are doing. Proof? Look at the last 2 days and tell me how much research went into the sell off and immediate rebuy. Zero---total knee jerk."


Lets look at the last two days were there was a 200+ point swing in the market. Was it all knee jerk reaction - possibly. Was it bad - definitely not. The stock market is the trade of a tangible item - a stock, ownership of a portion of a business. Every sale has to have a buyer willing to pay the price and every buy has to have someone willing to sell. A smart investor is the one that bought the stock when it plummeted and sold it the next day when it was high again. Up and down fluctuations are where the money is made and yes they are manipulated by people through bogus means. It's a game and always has been. There are people that know how to do it and there are those that get scared when their stock starts to fall and sell out of fear and lose money. There are also people and companies out there that stick through the daily ups/downs and invest for long term gains. Granted they aren't making truckloads of money every day but they are not at risk of losing truckloads either.


"Granted, RE does take a lot of research and elbow grease but ask the Donald how RE pays off vs. the market."

I don't know if I would consider Donald Trump a mentor considering he has filed for bankruptcy 4 times. That's right 4 times he has been able to escape his debt and leave others holding the bag only to come back and do it again. I do agree that if you invest in real estate you can control the up/down value of the property by reinvesting more money and sweat into it but the profit is going to be based on the housing market at the time of the sale. It is not guaranteed and as we have seen over the last couple of years a bubble in the housing market can affect everyone. I think that in real estate you as an investor will be more in control of your money/investment but there are some things I have learned over the years and one of them is that I am not the best at everything - I hire people to do things that I am not good at because otherwise I am just throwing my money away.
 
seethrough said:
I hire people to do things that I am not good at because otherwise I am just throwing my money away.
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Great point!!! There are a reason people are called professionals at what they do. I will never have the time to learn everything I want to do, so I will find someone who has that ability. Sometimes time is worth more than money.
 
VPRPWRD said:
I prefer to invest in both. The reason is simple, diversification. Putting all of your money in one investment is foolish.
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Agreed, apartment complexes, single family housing, industrial complexes and kids. Not necessarily in that order. :D
 
shorty said:
Agreed, apartment complexes, single family housing, industrial complexes and kids. Not necessarily in that order. :D
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Multi-units are typically a better investment, IMO, because when one unit is unoccupied you aren't paying for something that isn't generating income, the other units are still generating income If I own a single unit house and it's not occupied, I'm not making any money.
 
seethrough said:
"More millionaires have been made thru RE then the market."

What is this comment based on? Where is this statistic from? I question it because millionaires are everywhere these days. CNN recently reported that there are 9.6 million millionaires in the US so it is not as hard as people think to get there. In fact I think with some common sense and restraint most two income upper middle class income families could make it to becoming millionaires.


" In the market you are at the whims of others and in RE one can do all sorts of improvements to enhance the value. But---to each his own. The market seems to value investors that have no real idea of what they are doing. Proof? Look at the last 2 days and tell me how much research went into the sell off and immediate rebuy. Zero---total knee jerk."


Lets look at the last two days were there was a 200+ point swing in the market. Was it all knee jerk reaction - possibly. Was it bad - definitely not. The stock market is the trade of a tangible item - a stock, ownership of a portion of a business. Every sale has to have a buyer willing to pay the price and every buy has to have someone willing to sell. A smart investor is the one that bought the stock when it plummeted and sold it the next day when it was high again. Up and down fluctuations are where the money is made and yes they are manipulated by people through bogus means. It's a game and always has been. There are people that know how to do it and there are those that get scared when their stock starts to fall and sell out of fear and lose money. There are also people and companies out there that stick through the daily ups/downs and invest for long term gains. Granted they aren't making truckloads of money every day but they are not at risk of losing truckloads either.


"Granted, RE does take a lot of research and elbow grease but ask the Donald how RE pays off vs. the market."

I don't know if I would consider Donald Trump a mentor considering he has filed for bankruptcy 4 times. That's right 4 times he has been able to escape his debt and leave others holding the bag only to come back and do it again. I do agree that if you invest in real estate you can control the up/down value of the property by reinvesting more money and sweat into it but the profit is going to be based on the housing market at the time of the sale. It is not guaranteed and as we have seen over the last couple of years a bubble in the housing market can affect everyone. I think that in real estate you as an investor will be more in control of your money/investment but there are some things I have learned over the years and one of them is that I am not the best at everything - I hire people to do things that I am not good at because otherwise I am just throwing my money away.
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Good points all. This from Forbes. "After technology, real estate produced the next largest group of self-made Forbes 400 members" Of the top ten means to becoming a billionaire the stock market was not listed.
Maybe I should have said billionaires rather then millionaires.

Knowing that the market "investors" are gonna dump stock because of global worries is not investing but guessing. Wonder how many here actually knew the marked was gonna slide on Tuesday and jump back on Wednesday? Zero. Following the leader is not investing. You done missed the train.

Sorry about the trump comment. He is a billionaire and I used him as an example of making it in RE not the market. Bad example. Take a look at Forbes 400 and I think my premise is correct. It is about control rather than gamble. I believe one has a far better change of predicting the RE trends than predicting what uncle Pete is gonna buy/sell in the market because aunt Nellie's left knee hurt when she got up this morning.

That said, there are fortunes made in the market as anything else. Just believe RE is safer over the long run. Also, I lost close to 6 million in the market and not one dime in RE in the last 40 years. Go with the one that brought ya. If I were an investor in the market Tuesday and Wednesday would have rattled me to the core. No reason knee jerking as I see it. If the world economy were so bad as to sell off on Tuesday how did it recover overnight?
 
Dow down 328 pts. as of 2 central time. Must be that darn global fear creeping in again. What would be interesting is to compare the value of companies in 1990 vs. today using the earnings ration. I'll bet you would be greatly surprised and scratch your head as to how these companies increased in value many times over yet earnings were way off. I rest my case. :chain:
 
Oops, another 223 points drop today. Can anybody here tell me the reason without referring to silly news articles? Can anybody here tell me statistically from a P&E report why any of these stocks lost value.

Sorry my friends, to invest in an instrument that loss of gain is tied to knee jerk investors that most likely can't balance their own budget is way beyond my comprehension.
 
Emotions drive the market in the short term. Earnings drive the market in the long term. There has never been a rolling 10 year period of time where the market has lost money. The two most important considerations when inventing are goal & timeframe. If your goal is to double your money every 8 or 9 years, and you can park the money long enough for that to happen, then the stock market may be great investment vehicle for you. If your goal is greater or your timeframe shorter, then you probably aren't well suited for investing in the stock market.
 
Sorry, here we go again with the impulse buying. Must be good news about the Dallas Cowboys that triggered the buying today. :dontknow:
 
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