Stocks vs real estate


#542

I am now looking for a 1-story SFH in Atherton 5Br 6.5Bth 5000 square footage 1 acre lot.


Thinking About Doing Some Home Remodeling?
#543

that would marginally qualify as a starter home for a HNWI like yourself…:grinning:


#544

Is it not too small for you? :rofl:


#545

Such an expensive property seems to be a big drain on your resources…


#546

@hanera is a UHNWI. I showed the math a couple of months ago. He has dropped enough crumbs to place him there


#547

What kind of math? Show again please.


#548

too lazy to do it again. sum his properties in Cupertino, Singapore, Austin as well as his stocks


#549

I remember that exchange :smile:


#550

Uncle Warren bought this property in the 1970’s for $150,000. It sold after the listing price was cut by 1/3rd. I still say there’s a $1m price premium for being “celebrity owned”.

I asked the question to another forum - what would it look like had Uncle Warren invested $150k in Berkshire Hathaway back in 1971? What would that $150k be worth today? Another contributor said $550m, and I can’t verify the math. Assuming it’s true, methinks stocks in the long run out appreciate real estate, providing you buy into the right company.

Thoughts?


#551

Everyone is a genius investor in hindsight.


#552

Your friend is right, the amount he indicated may be right or even more.

Warren’s rate of growth was 29% YOY (not recent years), that is the max I heard.

Stocks always out run real estate when full cash involved.

It is up to the Investor how much he gets ROI.

For him, instead of real estate, he would have gone to BRK.B holding.

Even for common people, stocks are always better than real estate. When fixed mortgage is involved real estate outsmart stock in short run.


#553

(1.25 to the power of 2018-1971) 150k, get $5.38 T :slight_smile:

If 20% p.a. then is $790M.
If 15% p.a. then is $107M.

What is the annualized return of BRK?


#554

I’m showing the stock price in the early 70’s was between $38 and $93. Using the high of $93 if $150,000 was invested it would yield 1,612 shares. That number of shares x current price of $314k the value of your investment would be $506,168,000.

Woulda
Coulda
Shoulda


#555

Annualized return worked out to be 19% over 47 years :grinning:


#556

Um… I wasn’t even born in the early 70s. No woulda coulda shoulda here… :rofl:


#557

Tell us which stock will have that performance in the next 50 years.


#558

I am under the assumption that if warren did real estate like he did businesses, he’d still succeed. the argument is very moot here.


#559

TSLA.


#560

Tesla is the next Enron.


#561

Define success :slight_smile: I won’t extrapolate. Is like saying he can do the act better than you and me just because he is a billionaire.

Tempted to say AAPL but I know not possible. 47 years later, expect to have $5T market cap company. Hence, the market cap of that company should be $5T/ 4000 = $1.25B :grinning: rule out TSLA :sweat_smile: My best recommendation is IRBT :rofl:

Any of the 10x stocks is possible candidate. Choose a few and throw all in. Your son-in-laws would thank you.