Comments on: Diversified Stock Portfolio Beats Real Estate…? http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html Fri, 10 Sep 2010 16:24:27 +0000 http://wordpress.org/?v=2.3.1 By: campton-stock market investing http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html#comment-11039 campton-stock market investing Tue, 14 Oct 2008 10:25:13 +0000 http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html#comment-11039 Diversification does not mean having more than one company's stock. Think of your portfolio as a little financial ecosystem, a bunch of different things working and interacting with each other to thrive in their environment. Diversification does not mean having more than one company’s stock. Think of your portfolio as a little financial ecosystem, a bunch of different things working and interacting with each other to thrive in their environment.

]]> By: AJC @ 7million7years http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html#comment-2035 AJC @ 7million7years Wed, 30 Apr 2008 07:00:03 +0000 http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html#comment-2035 Cash on Cash return is what you just described ... and is EXACTLY the reason why real-estate FAR outperforms any other 'buy and hold' investment method. Why? Exactly as you said: it's the power of leverage ... applied! Cash on Cash return is what you just described … and is EXACTLY the reason why real-estate FAR outperforms any other ‘buy and hold’ investment method. Why?

Exactly as you said: it’s the power of leverage … applied!

]]> By: fiscalmusings http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html#comment-2024 fiscalmusings Wed, 30 Apr 2008 03:09:00 +0000 http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html#comment-2024 Thanks for the comment. I also read the article you mentioned in your comment, but it seems to be more concerned with one's own personal residence. It mentions that real estate has the added benefit that you can live in your "investment" rent free. I can't agree with this since you're making a payment which generally goes mostly to interest. I don't view one's own home as an investment anyway. A real estate investment, is just that though, an investment. And these investments over a period of time will enjoy great returns with power of leverage. Thanks for the comment. I also read the article you mentioned in your comment, but it seems to be more concerned with one’s own personal residence. It mentions that real estate has the added benefit that you can live in your “investment” rent free. I can’t agree with this since you’re making a payment which generally goes mostly to interest.

I don’t view one’s own home as an investment anyway. A real estate investment, is just that though, an investment. And these investments over a period of time will enjoy great returns with power of leverage.

]]> By: Millionaire Money Habits http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html#comment-1987 Millionaire Money Habits Tue, 29 Apr 2008 18:44:41 +0000 http://www.fiscalmusings.com/2008/04/diversified-stock-portfolio-beats-real-estate.html#comment-1987 Hi, Thanks for the link. To be honest, I resisted coming to that conclusion as I could never understand how stocks can beat real estate when you have so much leverage working for you. I cam to the realization that stocks beat real estate when I was doing research to find supportive evidence for another post I wrote a while back. I was shocked to find very little support for this and that the contrary was actually true. Here's one from Forbes, for example: http://www.forbes.com/2005/05/27/cx_sc_0527home.html I'm still a believer in real estate as a way to build wealth (especially multi-unit or commercial properties that cash flow), but I think it should play a supportive role in a portfolio. Ryan Hi,

Thanks for the link. To be honest, I resisted coming to that conclusion as I could never understand how stocks can beat real estate when you have so much leverage working for you.

I cam to the realization that stocks beat real estate when I was doing research to find supportive evidence for another post I wrote a while back. I was shocked to find very little support for this and that the contrary was actually true. Here’s one from Forbes, for example:
http://www.forbes.com/2005/05/27/cx_sc_0527home.html

I’m still a believer in real estate as a way to build wealth (especially multi-unit or commercial properties that cash flow), but I think it should play a supportive role in a portfolio.

Ryan

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