One more thing, avoid trophy wife.
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Ok, you had me at even, until you mentioned that. What rigging is there with single properties? It is blood and sweat equity but where does THE MAN come into play?
I do not go on and on further now, as I see waste of time.
Simple: Homes you can not and lot of documents involved and each one is legally binding. Each one is introduced every time someone rigs the system.
If you are a listing agent, then you may likely aware of the consequences of each clauses. Most of them we do not read, but blindly sign without knowing the details.
Similarly, 2008 downturn is caused by whom? Buyer, seller, lender, appraiser, mutual funds or government? They are still trying to fix the holes created by thatâŚ
Talk to a real estate lawyer, you will have plenty of stories.
What are you referring to? When I am referring to the stock market as rigged, I mean, that the little guy does not have the same access to information/opportunities as a big investor or worst an investment banker. I mean there are circuit breakers in place to artificially stop the market for a breather. WTF is that? A breather? Sorry, a free market does not âtake a breather.â A real true stock market ought to behave freely, so a stock can go to a penny at any given moment. Gee, does someone cap the increase in price if it shoots up? Of course not. Rigged!!! So, only positive is ok but negative is a no-noâŚ
If you are referring to the documents of ANY real estate transaction well EVERYONE is subject to them so there is no bias towards anyone. That is fair, everyone has to do them.
A level playing field is all we ask Jil. As long as the price is met, anyone can buy and own a piece of property. Can the small guy get in on the ground floor of an IPO??? Of course not.
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Loyal3 can give pre-IPOs for small investors, but very small and limited access. There are other sites too, sharespost.com & Crowdability - Equity Crowdfunding Research & Education, but not good (stay away) for small players as pre-IPOs have higher risk than well established companies like AAPL and GOOGL. Pre-IPO may not be the world until someone has 100k-250k in investment with brokers like fidelity.
If I want to co-relate pre-IPO in real estate, this is like buying a home at court house foreclosure, which is better for experienced realtor/investors.
During 2011, I took my friend to $358k 1BD 1BH Condo at Cupertino schools area. The home was listed more than 3 months as no takers. He did not buy at that time, now paying $2600/month rent. He was affordable at that time, but not now with current price.
Think this way, there are plenty of people did not buy primary home thinking about huge loan and jobless. You were in that position some time and I was in that position 10 years. Now, we realize the benefits when we get into it.
What caused (costed us) it is the ignorance of subject when affordable, but not the huge loan or job loss situation.
Same is the case for Stocks. If we ignore now, we stand to loose the growth over time. Investing is kind of Buffet way, carefully evaluate companies, buy and hold for long time. This is exactly like buying a home, either rental or primary.
Rigging side is by volatility, it is speculative like gambling or betting like me (I do it with small portion of my money).
No one becomes suddenly a big guy. Even Mark Zucker took almost 6-10 years to become this level. Buffetâs Partner Charlie Mungerâs pay was 12 cents/day when he was young (He quoted this in his recent conference).
But this (careful investing) needs time and money. Like bugmenot suggested to us, we need to spend 2 hours daily to update our knowledge on focus area. Read good investing books, magazines, we stand to benefit better life.
Look at here Reddit - Dive into anything, there are plenty of newbies aging between 18 and 30 making huge wins in life.
Most people are going to do better focusing that 2 hours a day on growing their career and using index funds. Even Buffet says that.
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I found this interesting about Mr. Buffett:
If you consider the actual cash flow of the properties, stock investments donât stand a chance. Also consider Warren Buffettâs thoughts on real estate investing. Warren Buffett is arguably the worldâs greatest investor and stock picker who has ever lived.
But in 2014, he wrote an exclusive article for Fortune on his real estate investing. Why would the most famous stock investor of all time write a major real estate article for a major finance publication like Fortune magazine?
Buffets most interesting quote.
In the 54 years we have worked together, we have never forgone an attractive purchase because of the macro or political environment, or the views of other people. In fact, these subjects never come up when we make decisions.
Why would one ever forgo an attractive purchase?
No guts⌠----> no glory
If it were easy, everyone would be doing it, right???
The hard part is you donât know whether it is attractive or not. Is not choosing your spouse. You get my point?
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There is risk to every transaction. Some more, some less. You crunch the numbers and assume the WORST case scenario always (the lowest rent, what happens if the place is vacant for a long time, etc) and go with your experience and gut. If there are any qualms, then donât go. Cash in hand is always a nice fallback.
Hey, how did you know my wife is drop dead gorgeous??? 
Because youâre always so cheerful.
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hanera,
I have to admit I got really lucky and married up big time. Not only is my wife pretty, she is a great cook. Very skilled in all Malaysian/Chinese dishes. I told her we should open a restaurant and it would take off. No good Malaysian restaurants around here.
I would never do it here, but if you ever saw a pic of my wife, you would bet me your best property without hesitation that she was not the age I would tell you. Young âboysâ hit on my wife every day (she works with the public) and she usually laughs at them and responds, I could literally be your momâŚ
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Buffetâs point was all the macro BS that people like lexa worry about is not important
But he makes use of the opportunity to Sell/buy, everything you can see after the facts.
http://money.cnn.com/2009/03/02/markets/markets_newyork/
Buffett: Adding to the weakness was billionaire investor Warren Buffettâs annual chairmanâs letter, in which he talked about the tough 2008 his Berkshire Hathaway company experienced. The influential investor admitted that he âdid some dumb things in investmentsâ during the year.
Later, when market is extreme downside, he started buying. The entire market turned bullish after that.
http://dealbook.nytimes.com/2011/08/25/buffett-to-invest-5-billion-in-bank-of-america/
Under the terms of the deal, Berkshire will buy $5 billion of preferred stock that pay a 6 percent annual dividend, and receive warrants for 700 million shares that it can exercise over the next 10 years. Bank of America has the option to buy back the preferred shares at any time for a 5 percent premium.
Berkshire Hathaway received $5 billion worth of preferred stock yielding 6% a year plus warrants to purchase 700 million shares of Bank of America common stock at an exercise price of $7.14 per share.
He understands (foresees ahead) of everyone. He can not beat the market without a proper forecast.
Betting the market will be higher in 10 years is overly safe. The problem is most of us would pay an insane premium to place that bet. Just look at the cost of Jan, 2018 options. They can easily run 20-30% of the stock price, and thatâs only 18 months. SPY options are running 10% over current price. Buffet was paid a 6% annual dividend to hold stock and get the warrants. Thatâs insane. Who wouldnât take that?
Right. Until the population starts decreasing which I think was predicted to happen in 2050 or so. Though it may happen sooner if the HPV vaccine manages to knock out the fertility of a significant portion of the US population.
Since I kept on buying during this volatile time, today I am up positive except two stocks, AAPL and GOOGL, which will eventually come up back to original level.
Last three days,as per Fidelity brokerage, AAPL, FB and AMZN had higher buy orders than sell.
As long as FED is not raising rates, stocks will recover.
@Jil you turned out to be right! I was too conservative, especially since Iâm looking to buy a property fairly soon.