Stocks vs real estate

But one may not have had the foresight to pick the one winner stock (AAPL) out of so many stocks whereas one could have done well (better or worse) with a very different 10 homes.

1 Like

Example is real not pluck from the air, slightly modified. You are merely pointing out complexities that I have said to ignore.

From 2013 to 2017, my stock portfolio gained about 100%. I think my real estate portfolio also gained by about the same amount as the stock portfolio. So yes! It does pay to have both a stock and a real estate portfolio. Good to take full advantage of big gains on both sides so that nothing is left on the table.

Only 100%? FAANGT shot up 3x to 10x during that period. It means you lost a lot in TWTR.

Stock guru will rule the world if he can keep the 3x to 10x returns every 5 years.

My question again, whose non-employer stock portfolio has increased 10x in the last 10 years? If you work for Apple and hold AAPL, does not qualify

Iā€™m super interested in having a stock portfolio that increase 3-10x every 5 years. Can someone show me such a portfolio with this kind of track record for 20 years?

Even if you can give me a stock thatā€™ll rise 3-5 times in 5 year, I would sell my RE and buy that stock. One and only one.

Someone bought a house for 200k with only 20% down 5 years ago, itā€™s worth 700k now. That would handily beat AAPL

You are expecting double in a year (1x YOY) which is extreme greediness. IMO, no one has done this through stocks. The max achieved is by Buffet.

The main content is if you have 100k which investment path provides better returns, Stock vs Real estate?

There may be so many complexities for each case to win or make such great returns. There may be cases losing millions in stocks and gaining millions in real estate.

Overall, The answer is Stock first and then real estate. This is very generic statement, but valid/correct statement.

2 Likes

Iā€™m a turtle not a hare :frowning:

Actually I invested only a little bit in twtr. I think the main reason for the 100% only growth is that I have too much AAPL and to some extent goog. Both stocks grew only 100% during that period. Also I have the index funds that mirror the S&P which didnā€™t even grow 100%. However, TSLA and FB outperformed, but those stocks are just 25% of my portfolio. So I everything evened out to 100%.

Overall Iā€™m happy with the 100% achievement because neither the S&P nor Nasdaq could grow by that amount during this periodā€¦ :slight_smile:

1 Like

Actually increasing 10x in 10 years doesnā€™t mean doubling every year. A 25% increase every year will get you to the 10x.

S&P grows by approximately 8% per year so you will just need to beat the index by 3x. Very difficult but not impossible. Iā€™m sure maybe 1% of the stock investors can achieve that.

My portfolio grew by about 3x from 2007-2017. So itā€™s an increase of about 15% per year.

1 Like

@BAGB you should buy TSLA then. It fits your criteria of increasing 10x in 10 years.

Sorry, my bad ! With 25% YOY returns, so many well known investors achieved during their period, notable ones are Carl Icahn, Warren Buffet and Seth Klarmannā€¦etc Additionallly, many hedge funds exceeded 25% YOY target for more than 10 years

2 Likes

According to this stock return calculator, no-DRIP return of AAPL for 4 years is 172% (total) 28.5% (annualized), 10 years is 710% (total) 23.27% (annualized). Since your portfolio is mostly AAPLs, return from 2013-2017 is within expectation but 3x for 2007-2017 is too far from 7x.

BAGD,
AAPL is a good stock to compare with SFBAā€™s RE because it is owned by many people here, a growth stock, exist for a long time (about 41 years), and HQ in SFBA. Google is about 20 years old, Facebook is about 13 years old, and Amazon is HQ in Seattle.

My portfolio isnā€™t mostly AAPL. I think you are projecting your own portfolio onto my portfolio :slight_smile:

According to our favorite professor Amazon will be the first 1T stock, and he said it will get there in 3 years. That means in 3 years AAPL will not even grow 40% while Amazon will grow more than 100%.

Just one personā€™s opinion.

But objectively Appleā€™s moat is not that big. You can buy a smartphone from Samsung and Huawei, not as nice as an iPhone but still gets the job done. There are alternatives to every Apple product. Compare that to Facebook and Amazon. There are no viable alternatives in the US. Thatā€™s true monopoly power.

Everyone can play Monday morning quarterback very wellā€¦

A ā€œrealā€ experiment is to pick NOW some stocks and real estate and see which comes out ahead. What are the chances that you find THE ONE or some stock(s) again that will give you the return equal or higher than the RE that we go and buy with the same gross amount invested? It could happen, but we have a larger margin of error I feel to achieve the desired results. Just my opinion, as alwaysā€¦

Actually itā€™s easy now to pick stocks to outperform RE, because the RE return will take a break after the rapid rise. Just put your money in good old $QQQ and you will outperform real estate no problem.

Yes, aapl is a ā€œvalueā€ stock. Donā€™t expect it to make gains but itā€™s there for the dividends and such. Oh well. Iā€™m not selling it because will incur huge tax burden. Also, you never know what tomorrowā€™s going to bring!

1 Like

It would be hard for Apple to hit 1T market cap because it keeps reducing its market cap through capital return.

Friend, you cited AAPL as the main reason for only 100% gain for period 2013-2017 but in fact, it is bolstering your gain since it gained 172%. Some of your stocks performed badly during that period.

Is a good thing. Keep Apple on its toe and away from the eyes of regulators. Time to breakup Facebook and Amazon?

That may be, but I prefer RE porn insteadā€¦

Umā€¦ that isnā€™t necessarily good advise. Nasdaq has also risen rapidly. Why wouldnā€™t it take a breather?