Re:The best investment I never made
by ajiang on Sunday June 24, 2012 @08:31PM
(#4154640)
One data point, one result. Obviously it's a universal truth right?
There are probably thousands of examples of people making an outstanding return on investing in property. And the example given in the post is extremely contrived:
"For example if you can start a new business with $50,000 then sell 20% of it to an investor for $200,000 in 1 or two years, you’ve created $1m worth of value in that time. Do you think if you bought a property for $1m with a 10% deposit, it would be worth $2m in two years or less? No way."
How many people can create companies worth $1M in 1-2 years that with certainty? How about compared to how many people can buy property? And what if you had invested in a house in China back in 2007-2008? The value of your home would have doubled by now so that your $1M would have been worth $2M with no extra effort.
Context, timing, skill, and luck play a great role into what makes a good investment. Let's be wary of over-generalizations made from anecdotal examples.
There are probably thousands of examples of people making an outstanding return on investing in property. And the example given in the post is extremely contrived:
"For example if you can start a new business with $50,000 then sell 20% of it to an investor for $200,000 in 1 or two years, you’ve created $1m worth of value in that time. Do you think if you bought a property for $1m with a 10% deposit, it would be worth $2m in two years or less? No way."
How many people can create companies worth $1M in 1-2 years that with certainty? How about compared to how many people can buy property? And what if you had invested in a house in China back in 2007-2008? The value of your home would have doubled by now so that your $1M would have been worth $2M with no extra effort.
Context, timing, skill, and luck play a great role into what makes a good investment. Let's be wary of over-generalizations made from anecdotal examples.