Then what’s the source of your downpayments - HELOCs?
Yes.
He would have made some money, but if you have 1.8M or 2M vested stocks, bought 1M home which you would have got it free cash, watching the stocks go down: It is a mental agony.
I had seen many like this during 1999-2003 period. My friend bought $32000 stocks watching it to go down $1500 finally sold it. He had a car loan for $30000 which he could have paid it. This person borrowed full margin money.
Another one lost 5M from I2 technologies, never sold it, company went bankruptcy stage. That person was VP in I2 technologies, now working as consultant in bay area living pay check to pay check. He sold his South San Jose, Cupertino Condo and Cupertino SFH home to pay heavy debt. He was working in our company 2 years are Consultant.
He is now renting some home Cupertino ! I could not believe it,this is his 32nd year, but true.
There were plenty of true financial horror stories of year 2000.
Let’s not focus on the negative. Focus on the positive! I saw a Facebook VP’s custom home in San Mateo. Absolutely gorgeous 4 stories with huge swimming pool plus an infinity pool. He knows how to enjoy life. He’s been with FB since 2006.
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Probably the worst conclusion one can draw from 2000 was to avoid all risks and not invest in stocks anymore. It’s entirely human nature but also totally wrong IMO.
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Stock returns are great, Go with Margin of Safety taught by Intelligent Investor and Seth Klarmann.
Stock investment is a side income parallel to anyone’s job as long as they have time to devote.
VPs, SVPs and Chiefs of post-dotcom era are playing safe, sell any RSUs and options upon vested.
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I have two words for you:
Charlie Gard
Is that kid an American? Is he going to be resuscitated since he is brain dead? Where are the American doctors opinion on this?
If I had a kid like that, as we talked with my wife years back, we were willing to do an abortion or fight to the end if s/he was born with a desease, but also we knew that there are instances when you have to take in consideration a human being needs to have a normal life, not confined, not crippled, not attached to IVs, to medicaments, to see other kids playing soccer or basketball, and suffer the horrors of a life not asked for. It is a decision left on the hands of the medics and parent/s and no government should be involved.
Then, the stupidity. Since when Twhitler cares about kids anywhere in America if he is taking their breakfast or lunch from their very own mouth? No healthcare for handicapped kids? Hello!
America first? WTF?
Were you trashing Kimmel when he announced the heart condition on his kid too? Remember how conservatives trashed him big time? Were you supporting that? I bet you did, right? I bet Twhitler twitted a word of compassion, did he? No? OK! America first!
I got to words for you too…Terri Schiavo
And until a few days ago, that expression of intent by Terri Shiavo, communicated orally to her husband, was sufficient under the law of Florida (and many other states) to permit Terri to have the peace she desired. The courts and lawmakers who have dealt with these terrible types of situation have spoken virtually unanimously to say that, when the affected patient has not provided a written set of instructions, another person must be the “surrogate decision-maker.” And in cases where the loved ones of the patient disagree, preference is always given to the spouse. This is true not only for questions of whether to take extraordinary measures to prolong some sort of life, but also for decisions about funeral and burial arrangements and questions of inheritance: spouses are always turned to first. As Dahlia Lithwick of Slate explained over a year and a half ago in reference to the Schiavo case, the prioritizing of the spouse is for a very simple reason: you choose your spouse. You don’t choose your family. It is assumed your spouse knows the everyday details of your life and beliefs, and that if you choose to be with them you trust their judgment in even the most final matters of your life.
Yet, for a variety of reasons, that judgment has not been allowed to stand in the case of Michael and Terri Schiavo. To be clear, I don’t fault the Schindlers one bit for taking their fight as far as they can. It must be an unimaginable tragedy to lose a child, and even worse to have ones child in such a strange limbo, with Terri’s heart still beating even though Terri herself has been gone for fifteen years. The toll of the situation should be recognized in the fact that it took Michael eight years to accept any sort of finality with regards to Terri’s chances of recovery, and slowly start to move in what he believes to be the direction Terri wanted—to let her go.
I don’t blame her parents for not wanting to accept that she’s gone, and to make those steps of their own.
Wow…
Let’s return to his idea of an economic moat…
SV has…
…pricing power because of good schools, job centers and weather;
…barriers to entry because of nimbyism in addition to inherent barriers of RE;
…high switching costs because of good schools and landlord’s lower than market rate rent upon renewal;
…same as other RE;
…trade secrets, that’s depend on buyers’ knowledge.
Above article conveniently forgotten about the “defer tax strategy” and “margin of safety rule”.
All experienced landlords know the former.
The latter rule means buy fixer-upper if you’re game. For most folks, buy well maintained and moderately re-modeled house.
Good schools are actually quite rare in SV. That’s why homes with good schools command such a premium. Just look at EPA vs. PA. Also, look at the price delta in Menlo Park based on schools.
Warren Buffet rules:
1- Never lose money.
2- See rule number 1 
By the way, the poor kid Charlie Gard died. He was way too damaged to survive anything. Poor baby. RIP
Gotta have a WB story to kick off the new year, right???
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Not that you cats aren’t rich enough already…
#1 is really live below your means. That’s what allows you to re-invest profits.
It’s interesting he doesn’t believe in borrowing money. It makes sense though. If you borrow, then you have to earn more than you’re being charged to borrow to be profitable.
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