How Much You Would Have Made Over 20 Yrs In These Housing Markets

[sfdragonboy]

It was a timely article about a man who made it big on RE…i had to use the card since it was handy

[hanera]

@Elt1

Way back when it was the nifty fifty…How many of those stocks did well…Buying and holding you have to assume no better than that if an index fund…I have owned index S and P 500 index funds since the 90s they have tripled. BA house prices have gone up 5 times plus leverage…

Red herring. We are talking about a specific case in a specified duration. You’re talking about another timeframe and broadening the issue away from the context. The original comment is merely saying what would be the difference has he bought a hot and well-known FAANG instead of the house in that same duration.

[hanera]

@wuqijun

All I can say is that I’ve made much more money from stocks than real estate.

Ditto.

[hanera]

@marcus335

If you want to be worth $100M+, then you better start your own company. That’s the path whether you call it stock or RE depending on the type of company. The point is they started their own company. Everyone else is just trying to be financially independent.

You are getting the context right MBA

For everybody, RE or stock investment is the way to FIRE?
To be rich (>$100 mil), there is only one way, start your own business

[Elt1]

Fang won’t last forever. Stocks are all about timing. Very important to know went to sell. RE is much simpler buy and hold on for generations

[hanera]

@Elt1

Fang won’t last forever. Stocks are all about timing. Very important to know went to sell. RE is much simpler buy and hold on for generations

Another red herring That guy bought and sold a within 5 years.

[BAGB]

“When you love what you doing, you’re not working a day in your life. That’s how I feel,” he said.

7.6B net worth
https://www.forbes.com/profile/stephen-ross/

[BAGB]

Did you make more money from employee stock options? That’s basically from employment, not from stock investment.

We should compare investment gains only. ISO, NSO, ESPP, RSU are not investment, they are employment compensations. When your employer gives you $1M, it’s your employment income, or investment income.

Other than hanera, is there anyone here who’s made more money from stock investment than RE investment?

[wuqijun]

Most of my gains (though on paper) are from investments, not stock grants.

[hanera]

@BAGB

When your employer gives you $1M, it’s your employment income, or investment income.

This definition is too simplistic. The gain/ loss after the vesting is stock investment Similiarly, any gain/ loss of ESPPs is stock investment.

[wuqijun]

That’s true, I actually had to spend a lot of money out of pocket to purchase the ISOs from Apple. So I’m treating them as my own investment gains today as opposed to something that was given to me for “free” as @BAGB implied.

[hanera]

Guess he didn’t learn accounting. Basic accrual accounting.

[Jil]

@Jil

@hanera

@Jil

This home owner made already 1M+ in 5 years.

Should he invested that $1.83mil in,
FB, would be worth $9.64 mil
AMZN, would be worth $7.87 mil
AAPL, would be worth $3.83 mil
The FB guy can sell half of his stock to buy this house + plenty $ to splurge

The seller had 1.9M mortgage, who gives it for FB, AMZN, AAPL. The seller is from one these companies.

https://www.redfin.com/CA/San-Jose/1593-Cherry-Glen-Way-95125/home/1384633

Here is the case. I bid for the home, and I know the seller had 1.9M mortgage from prelims. Effectively, the seller lived the home, instead of rent, for 5 years. They countered beyond 3M, I walked out, someone bought it.
Effectively, after paying commission, they get 500k tax free and 500k taxable income for holding the home.