Warren Buffett

The optimism in airlines is more about consolidation of companies eliminating excess capacity and giving them some pricing power. Consistently lower oil prices have helped too. Notice how they haven’t removed the bag fees which were added due to high oil prices? The capacity reduction will last until they need to grow revenue to grow profits. Then they’ll all start adding capacity and the price wars will return followed by lack of profitability. I’m surprised to see him investing in something so short-term (by his standards). It goes against his favorite holding period is forever.

Parking lot is great for development, but parking income might be too low to cover the carrying cost. It would be great to buy a parking lot in downtown when the city is founded.

Gas station in major cities may be too expensive to be profitable due to the land cost. But you maybe able to buy a good gas station in an area which is still not fully developed.

When Ford Field and Comerica Park opened, there was a free lot near it that was owned by the city. People would stand there with a roll of tickets and charge for parking for games/events. Talk about ROI! You collect for parking and don’t even have to buy the land.

Land banking in urban centers are probably too expensive. You have to buy the land and immediately develop.

Where is a good place to invest in parking lot and gas stations today?

The airlines have made the the flying experience so miserable I am sure more drive, especially to LA…the baggage gouging is disgusting and makes boarding take forever…

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Using WB name just to get click. Everybody know healthcare REIT is good since we are living longer. Tech ones are like shopping malls one, cyclical.

Ok, did one of you deep pockets win this???

Mmm, Smith & Wollensky is quite good but pricey…

http://www.bizjournals.com/sanfrancisco/news/2017/06/09/warren-buffett-lunch-glide-wfc-brk-berkshire.html

I actually didn’t know that! But that makes a ton of sense.

Which healthcare REIT is good?

Only has OHI. Actually, many to choose from. The popular ones are HCN, HCP and VTR.

OHI has 7.5% yield. Very good. Maybe after the Senate passes the Obamacare repeal the stock will go even lower and thus push up the yield?

Yes, is a cashflow play.

[quote=“manch, post:63, topic:1760”]
Maybe after the Senate passes the Obamacare repeal the stock will go even lower and thus push up the yield?
[/quote]That would be good, need to buy more.

You can say whatever about WB. He ain’t fool like you or I.
He deals with lots of money, money that you can’t even touch in your entire life.
That means, to get to his level, you take one step at a time, but, remember, he did good and not many achieve their goals.

Ohhhh…the most important opinion from him: He is pro universal health care. In your face! :stuck_out_tongue:

Cuz he is old and he is cheap???:grin:

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He is rich, but that doesn’t necessarily mean he makes good policy. We have plenty of rich people whose policy you won’t like.

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Since he essentially owns Geico, let’s remind him of his bad policy about maximum number of units exposure on umbrella policies!!! God, that additional Fremont home buy costed me dearly…

Include CCP too ! However, all REIT’s dividends and MLP dividends are not qualified.

They are taxed as income rather than capital gain tax (0% or 15% or 20%).

If you are looking qualified dividends, better to wait for opportunity to grab VZ, T, GILD, QCOM, PFE, JNJ like “dividend aristocrats”.

Keep in IRA :grin:

If keep in taxable account, then for low income tax rate,
Equivalent dividend rate for qualified = Reit’s dividend * (1-your marginal income tax rate)/(1 - 0.15)

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IRA can’t do margins. How about borrowing margin money at 1.5% interests, buy OHI to get 7.5% dividend yield?