My friend Charles was 100% invested in little Shit houses. He bought them cheap and fixed them up little by little. The rents went up every year and he has made a lot of money over the last 45 years.Cortopassi wrote:I'd be interested in what your friend did during/after the tech bust in 2000/2001 and the RE bubble in 2008? Just hang on to whatever he had? Sold? Bought? Does he have an advisor recommending things or does it himself?
Cash not earning anything, long bonds scare him, gold has no return, yet he's comfortable with 100% (or whatever high amount) in a never ending stock market bull?
He has sold the houses and has a ladder of CD's.
I recently let him read the PP book and he called us a lot of funny names: Doomers, Gold bugs, way outside of the investment world, and very much on the Fringe.
He dismissed the 45 year investment record by saying the recent returns and the 1990's were poor.
He would be happy with 4% real returns but said we are all smoking something. He suggested that the wind has been at our backs for 35 years and rates will rise in the future.
We ride bikes once a week and that is the story on Charles.