Dow Down 666 Points

Individual houses are also risky. It could be sitting on top of a sinkhole.

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Isn’t that like… going to prices just… ~3/4 years ago?

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Really? Why is that? (1 - 1%) * (1 + 2%) is not the same as 100%.

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I think he meant decline 50%, need 100% gain.
$100 > $50 > $100… $50 to $100 is 100% gain.
$100 > $99 > $100… $99 to $100 is 1.01% gain.

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You can buy insurance on the house. If there’s a stock insurance at 0.1-1% per year, I would feel better about stocks

You can’t buy insurance for detroit-like scenario though.

If FB goes to zero, Menlo Park and Palo Alto price may go up 10% instead. Sun Micro and SGI disappeared, but Menlo Park and Mountain View prices has tripled since.

Detroit decline happened over decades, you have plenty of time to sell. Enron did not give people the chance to sell.

This is like saying “If I drive the car, accident will happen. I avoid it”.

By thinking this way, if warren buffet stayed out of stocks, he would not have made billions ! Last 100 years, plenty of great investment managers proved how they made big money !

Enron happened like that and many (including employees) committed suicide, but that is not the show case for stocks.

“coffey park santa rosa” is not an example to show not to by real estate.

You are missing a major growth vehicle in your life. You close your eyes and telling world is dark.

If FB goes to zero, Google would scoop up a bunch of employees, and vice versa.

The only way prices would drop is somehow vcs moving, meteor crashing, earthquake wiping towns not just couple homes, big fire like it happened in chicago back in the day (but very hard in suburbia due to zoning i guess :D), all companies going bankrupt at the same time, political instability to a large extend, wars, huge recession where literally everyone becomes poor.

The insurance for stocks is called options.

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Yup, exactly. do you use it manch? Do you buy protective puts?

I don’t use protections. They take the fun out.

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keh keh keh.

I used to kill time on reading hackernews, now i am talking with you guys… next thing i know i will be on IRC.

True… although not quite enron, it is possible small caps can go under fairly quickly… hence limit % invested per counter… so far in my investment history, 3 counters that I have invested went bankrupt :grinning: and many more decline to nearly worthless.

I need food, water and weapons :slight_smile:

Did you mistook what he meant?

You have learned to value diversity of thought.

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Although I’d love to have more women here. Forum is still mostly dominated by male engineers.