/biz/ - Business & Finance

[Anonymous No.701913]

Thoughts on Warren Buffett?

I recently inherited two apartment complexes, I just turned 22 and I want to make something of this amazing gift so i'm looking into investing, Warren Buffett comes up often so I wanted to know what you guys thought about him.

(PS first time on /biz/ so be nice guys)

[Anonymous No.701916]

He's a badass but it's extremely unlikely that you'll be able to do what he did.

[Anonymous No.701919]

>>701916
I don't think I can do better than the people he even looks down upon but id like to do well enough that I can live comfortably the rest of my life if that makes sense.

[Anonymous No.701920]

why were they given to you at 22? are your parents dumb?

how much are they worth?

[Anonymous No.701922]

>>701920
>are your parents dumb
No, they're not real

[Anonymous No.701923]

>>701922
the most likely explanation

[Anonymous No.701932]

>>701920
Actually they are my grandfathers, he came to Canada in his 40s with 100 dollars and worked his ass off all his life and saved every penny, he then bought and sold buildings with a group of other people he came into the country with and now hes got about 4 apartment buildings. Hes 80 now and really starting to unwind fast so hes spent the last year training me to run them and iv just received two of them. He cant teach me much financial because of a little bit of a language barrier. Im try lingual but not a master at Greek and it gets more complicated when you start talking in money management. Its a small family and both of his children have lived rent free in one of the buildings for 20 years plus being divorced so he sees them as a failure and i'm somewhat whats left of his legacy so i'm just trying to make him proud, not lying about anything id just like some legit advice.

[Anonymous No.701940]

>>701932
>his legacy
>Im try lingual

Sell it, move on kiddo, you're not cut out for this business

[Anonymous No.701946]

>>701940
That was an auto correct on my phone, no reason to be rude man i'm trying to learn. And there's no reason to sell the buildings have zero mortgage their payed off and require surprisingly little maintenance, i'm here for some investing advice that's it... i'm not assuming I know everything or i'm a genius

[Anonymous No.701948]

>>701932
>try lingual
I know how u feel bro, I try to talk too sometimes but I open my mouth and the words won't come out. I'm chokin now everybody jokin now the clock's run out, time's up over BLOW

[Anonymous No.701954]

>>701913
First of all anon.

Buy a copy of the bible of investing, recommended by warren buffet himself as the most definitive guide to investing.
"The intelligent investor" by Benjamin Graham

That is a very good start.

After that if you are looking for easy/lazy investing that performs quite well, you should look into investing in an index fund.
These funds track the movement of the index and generally make stable long term gains and minimal risk as you have diversified to the entire market.

For that you will requite a book like "The Bogleheads' Guide to Investing" by Michael LeBoeuf.

Buffet recommends his heirs to do it because it's easy and they won't be as capable as him to do any better.
http://www.marketwatch.com/story/warren-buffett-to-heirs-put-my-estate-in-index-funds-2014-03-13

http://www.businessinsider.com.au/warren-buffett-recommends-sp-500-index-2014-3

>Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.

Stay away from FOREX.
Don't ever trade options/futures etc
Yes they can be profitable but not for newbie investors.
Don't intraday trade

You can also purchase "rich dad poor dad" by Robert Kiyosaki as a foundation book, it's not a guide to investing by itself, but it fixes your mindset to understand how a rich man should think.

And most of all, good luck m8
Make /biz/ proud by not being one of those rich kids who loses everything within 10 years of inheriting it.

[Anonymous No.701955]

>>701946
OK brother, assuming this is real (which it isn't) but we'll assume it is. Let's say each complex is worth $2mil Sell both buildings when the market in your area is at a decent level. (not sure where u live don't care, do the research). Then buy a cheap home (~300k) CASH. Buy a certified pre-owned car for ~15k CASH. Call up local financial advisors in your area and have them build institutionally managed portfolios for you for 500k. Go to big names like Oppenheimer, Wells Fargo, Merryl, etc. Pick the 5 best portfolios and just sit on your ass and look at statements quarterly. Put 500k into GW&K .Use the cash not invested to furnish your home and have play money.
This plan will give you ease of mind and you'll never have to work a day in your life other than talk to some jews every 3 months.

>source
Financial Advisor 5 years

[Anonymous No.701957]

>>701954
Hey thanks for the serious response, i'm not trying to become a billionaire i'm not delusional I just want to do more than was expected of me. Also about the first book you mentioned I have it downloaded, I was planning to start reading it this weekend. I hope its not overly technical.

[Anonymous No.701959]

>>701955
I live in Quebec Montreal, I don't have a license cause public transportation is pretty great here. I can only sell one cause i'm currently living in one of the complexes and so is the rest of some family, (I can't kick out family) Thank's for the advice though i'm going to take this info down.

[Anonymous No.701960]

isn't warren buffet's advice just to buy and hold index funds?

or is that advice just for plebs?

[Anonymous No.701963]

>>701957
>millionaire
>pirates a 20$ book
kek

Vanguard index funds, buy and hold, you can't go wrong.

>>701960
It's advice to his heirs, who he fully expects to be plebs not on his level.
It's not wrong though, it requires no work or talent while outperforming the average investor.

[Anonymous No.701965]

>>701963
I'm not exactly a millionaire and even if I was I wouldn't start paying for things I used to get for free, iv only considered getting a kindle paper white to read off of cause I have sensitive eyes and I don't like staring at a screen for more than 4-5 hours

[Anonymous No.701968]

>>701965
oh i should also add that you keep 2% of your wealth in gold as a hedge.
Gold is a bit high right now though, i believe at the end of 2016 it's expected to drop to around 900-950.

You can't buy too much because gold is just a store of value, it doesn't grow with time, it merely preserves wealth and people flock to it during bad times.

[Anonymous No.701972]

>>701968
That kind of makes sense actually, unless you're trolling then i'm quite gullible

[Anonymous No.701973]

>>701968
>>701972
you're better off buying mint DC comics than gold, don't buy old it's plebian's safety net. You're no plebian

[Anonymous No.701974]

>>701973
Nothing wrong with having a 2% safety net.
Are your mint DC comics going to defend you from Zimbabwe hyperinflation the American edition?

[Anonymous No.701975]

>>701974
no gut they appreciate in value ~5%/yr and have global market audience, impervious to inflation as they are not a commodity they are a novelty item

[Anonymous No.701976]

B T C S

[Anonymous No.701977]

>>701975
My view is that the 2% gold safety net will cover any liquidity crisis you may have during a market downturn.

Gold will become overvalued.
And it's an opportunity to BUY undervalued stocks.

[Anonymous No.701983]

>>701977
Gold is never significantly overvalued where it's a solid investment choice... It's literally just a safe haven for people who aren't savvy in alternatives or uncorrelated assets. You don't even have to use mutual funds like Locorr, you can do what I said and buy novelty items that appreciate in value.

For all you gold lovers look at the value of gold/oz from 1950 to now. Now look at Dow from 1950 to now.

At the end of the day, sure if we have a liquidity CRISIS maybe comics aren't the best option... but sitting in gold isn't a good strategy to just put into play "just in case".

[Anonymous No.701998]

>>701983
It's a personal choice, i like to hold the shiny metal in my hands and be certain that it's intrinsic value has held for thousands of years.

It's also insurance for an unprecedented level of crisis, which is unlikely but not an impossibility.

Once again i've already stated that you shouldn't buy too much gold because it's an asset that doesn't grow.
They are practically just bricks that hold value.

Perhaps the greatest advantage to me is the intangible value, it's psychologically reassuring.
I sleep better at night knowing i have some gold at hand and the rest in index funds.

[Anonymous No.702052]

>>701932
your grandfather is a pussy greek faggot
>sucked canadian cock in his 40's sucked cock all of his life and made sure he swallowed every nut

[Anonymous No.702510]

>>701913
Hey op fuck stocks and bonds and all that noise invest it in real estate which is proven to be the safest and very fast ( if you know what your doing ) form of investment I'm just about to go to bed but here's so advice I gave to some Canadian guy
>>700406
Op I don't know how things work in Canada when it comes to realestate but you should get a variable interest only mortgage with an offset account in place, I mean why give the bank more money than you need to. keep all the profit you make from the property in the offset account and don't worry about rising interests rates c tax time everything in property is tax deductible from interest payments to rental managment fees (atleast in Australia) if your tax deductions aren't as appealing just have a sizeable buffer I place to offset the rising interest rate ( Canada's economy is pretty solid so I wouldn't even worry about interest rates rising that much ) and next time you buy a property make sure it's positively geared or neutrally geared !!!! also you should generally try to leverage your money as much as possible by having an LVR of the absolute max the lender/bank is willing to allow unless you unless of course your planning on building a substantial property portfolio in that case you'll be seen as too much of a risk. And always always ask the question of " what makes me more money " as opposed to " blah blah blah I'm gonna pay the bank this much and this much " I've paid off 10 of my investment properties and I'm living on $140,000 passive income from them you basically just buy a ton of properties then sell half of them off when the value of them have doubled then use that to pay the other half. Sorry if there any spelling errors was in a rush typing

[Anonymous No.702511]

>>701913
My response to some questions
after buying your first property it's pretty much easy street from then on op, because each property pays for the next one. After a year I went back to the bank and refinanced for the deposit for my second property and so forth and so one. When it comes to property it's basically a waiting game and in most cases if your able to hold on to the property through a full market cycle 5-15 years your property would have doubled in value. I made sure that every property I bought from day one wan't taking money out of my pocket by being positive cashflow as well as positively geared after taxes or being neutral geared neither taking or putting money in my pocket. I put all the excess cash from each property into an offset account where it would both reduce interest repayments and be there for me incase of emergencies ie roof leaking or hot water system not working. I also used a different lender per property for many reasons the biggest one being to avoid cross-collateralise. And having a property investor savvy account is priceless at least here in Australia where every little thing from the rental agents management fees to interests repayments are tax deductible this mean't that on my 5th property I stopped paying taxes altogether because what I was claiming was way more than what was being deducted from me ! ( little smirk from beating the system) I only ever used my salary to save up for deposits to fasten the process of property acquisitions never to support them because they took care of themselves, also having a great team around you is essential op ! I can not stress how many people I've meet that have the poor mans mentality of ( doing it themselves to save a buck ) when in almost all the cases they completely fuck up and ended up costing themselves more than they would have if they had just hired a professional in the first place. Pt 1

[Anonymous No.702514]

>>701913
Pt2 it took me roughly 7 years to get to where I am today. I used a really good buyers agency to find the properties for me and negotiate the price for me ( I suck a negotiating) I bought properties at the median Australian price of between $300,000 - 500,000 ( preferably sticking to the lower range of $300,000 ) this way 80% of the population could afford to rent them because the rent amount needed to cover the mortgage payments arent ridiculously high making the rental returns on the property actually profitable.( the people that can afford the rent on your $800,000 house aren't renting they live in there own homes) I looked for properties in good solid locations that had a long history of strong capital growth with lots of amenities such as parks, shops, schools etc and were close to public transport in a nice quiet street with lots of sunlight. And make sure your buy in areas that are mainly home owner occupied and desired because when they're bidding on the property across the street from you they're not hesitant to make that emotional des ion and pay thousands of dollars more for the property which in return increases your properties value! ( also if you ever have to sell your property you have more than one potential market interested ) And I can't stress this enought and I sound like a broken record but make sure the property is either positive geared or neutrally geared !!! You would start a business to lose money would you ? Then why would you buy a property that costs you money ? And all you have to do at the end of the day is wait for the capital growth to occur then just refinance withdraw the equity and move on the next one ! Before you know it 1 turns into 2 then into 4 and so on and so forth !

[Anonymous No.702515]

>>701913
Pt3 ( last I promise ) And one last thing don't focus too much on putting alot of money in your offset accounts because what would you rather an offset account with $100,000 that saves you $5000 in interest payments per year or buying a $300,000 property that goes up $25,000 each year. Just keep a sensible amount that's all and always ask the question of what makes you more money? And yes keep the interest only payment period as long as possible here in Australia if you opt for interest only you generally get give 30 years to pay off the loan and the first 5 years are interest only with the rest being interest and principle oh and before I forget to mention !! When refinancing and withdrawing that equity to buy another property the rent would have gradually gone up from when you first bought the property making it possible to handle the extra debt on the property still making it able for the property to pay for itself. Sorry for the long posts op but hope I was a bit helpful I almost never see real-estate threads on biz/ so I'm always willing to help a fellow real-estate entrepreneur ^_^

[Anonymous No.702525]

Put some of your money in ACWI and VT (ETFs which track the global economy) until you learn enough about investing.

[Anonymous No.702526]

>>701913
Google "bigger pockets" and read the free begginers guide for real estate

I would pay someone to manage them and chillout

[Anonymous No.703409]

>>702515
Not OP but I recently started construction on a $300,000 quadraplex. I had to pay cash for the land (57K) and the loan is 6% interest only during the construction period.
Anyhow, onto the question itself. Do you manage the properties yourself? If not, how much % does your company take?

Also, outta curiosity, how many properties do you own now, what's your gross income per month, how long have you been doing this and how many properties do you acquire per year?

[Anonymous No.703470]

>>703409
Not the guy you asked but the rule of thumb is 8% of rents go to the property management company, finding a good property manager is the hardest thing to do though, maybe 1 in 20 are legit and wont sit on their hands and let your property rot

[Anonymous No.703474]

>>703470
Why give 8% to them when I can do it myself? How hard is it?

[Anonymous No.703493]

>>703474
Well it depends if this is all you do, 4 units and you own them outright am I correct?

so takeaway taxes and a little on the side for maintenance and is that enough to live off of? if so then yeh

but your tenants will call you at 3am for leaky toilets and to complain about each other, and thats your job now, to fix that toilet at 3am, any day, any time, you are now on call as the derpy shit handler

So really just crunch the numbers and weigh what your time and frustration is worth

[cman No.703495]

My advice is to not come to 4chan for advice.

[cman No.703500]

Better yet:

Don't listen to pessimists. They're far more popular than optimists and are contagious. Only list to positive perspectives.

Save, save, save. I'm assuming these complexes are profitable. Keep them, save, get active with them, use your intellect and intuition. Save save save then buy more.

[Anonymous No.703602]

>>703409
Hi there
Having a good team around you makes a world of difference from accountants to mortgage brokers etc but to answer your question yes I do use a property manager of course I always factor in the cost of the management fees when calculating for my next purchase. You don't want to have the poor mans " do it yourself mentality " you should always strategically out source jobs your not 100% confident with other wise you'll just ended up completely messing up and costing yourself more money than you would have if you had just payed to have it done in the first place or doing an inferior job which again would be costing you more money. For example I use to manage my properties when I first began investing but it was always difficult for me to find a decent teneant and it would normally take me 2 - 4 weeks to have a new tenant in and trust me you don't want to get calls at 2am in the morning from tenants complaining because the hot water system broke down or the roof was leaking ( only happened once to me ) this calls drove me nuts!! In short I got the best property mangers I could find to take care of my properties and which utilises my time a lot better because I'm out there able to research on the next deal to make more money as opposed to just dealing with needless headaches. It's all about what move makes you more money! ^_^ and I'm on my 10th property I've actually stopped because I'm living more than comfortably on them and their all payed off. It took about 7 years and what I basically did we wait till all my properties had basically doubled in value then I sold half of them and use the money to pay off the other half. I had about 23 properties at my highest point. And I roughly earn $12,500 a month sometimes it slowly goes up every other month with minor increases in rent.

[Anonymous No.703606]

>>701913

I worked on a VIA rail line in Alberta that Mr. Buffet and his family would ride a few times every year. Funny guy. He refused to read the news online, insisting that a stack of newspapers be brought to the train from various cities for him to read. I also never saw him nor anyone else in his family drink anything other than cherry coke. He tipped moderately well.

[Anonymous No.703612]

>>703409
Sorry forgot to answer the last bit
It's normally around 8% of the rent per year is what the property mangers in Australia charge. If you have multiple properties with them you can easily negotiate a discount since you are of course their most loyal customer. I have 3 of my properties up in the Gold Coast negotiated at 6% with a really good property manger ( he's always proactive in increasing the rent along with the market demand ) and he's always informing me on anything and everything of important

[Anonymous No.703634]

>>703606
>cherry coke
Truly patrician

[Anonymous No.703658]

>>702515
>I'm always willing to help a fellow real-estate entrepreneur ^_^
I honestly don't know anything about real estate but your posts are extremely informative, especially as they are relating to the Australian market which I live in.

My mother is cluelessly throwing money at real estate so I thought I'd research a bit.
Any chance we could privately discuss what her position and potential best moves are?

I mean currently she is cash flow negative I believe on new investment properties and pays them off one by one in full.
Basically from all I've read she seems to be doing it wrong.

[Anonymous No.703697]

>>703658
Hi there I'm always willing to help and new properties are definitely a big no no !! Your buying them at a premium that the developers and builders put there to make their profits, basically killing any capital growth you would've gained in the first few years of the property. Here's IMO the best buyers agent in Australia ( they were awarded best buyers agent of the year last year, so not just my opinion me ) https://binvested.com.au not only did they find the exact properties I was looking for but they were all below market value, allowing me to quickly refinance and extract the equity to move on to the next property, they were basically the reason I was able to buy 20+ properties in less than 6 year then sell half of them wiping out my debt and leaving with 10 properties all paid off with a large passive income ^_^ but sure I'm more than willing to have a private chat with you about your mothers circumstances in property.

[Anonymous No.703703]

>>703697
First of all, thanks for that.
I'm taking notes, or more accurately, screenshots lol

If you could email this account I use for anonymous internet things."[e-mail]"

[Anonymous No.703707]

>>701919
Very good goal! I recommend reading the richest man in Babylon and how to win friends and influence people(warrens favorite book) you can find both for free as audio book on YouTube they are interesting. Warren buffet is a genius and I'm very happy for his success. Also a tip for you. Learn to save if you haven't already a safe net is good before jumping into business options best of luck and enjoy /biz/!

[Anonymous No.703709]

>>703703
No worries I'll message you tommorrow I'm just about to go to bed ^_^

[Anonymous No.703719]

>>703709
Sorry I mean't to type in tomorrow **

[Anonymous No.703724]

>>703709
Sure me too ^^
Good night

[Anonymous No.704837]

>>703719
Sorry but how did your properties double in value and how long did you hold for? That seems improbable.

Im looking at the US market and only have about 80k cash to work with.

Pic of a famously overvalued property.

[Anonymous No.704846]

>>704837

In the US, home values have doubled since 2011.

Our housing market has been in full retard mode for the last 7 years.

My parents bought a house in 1990 for 120k. Up until about 1999 that house was probably always worth about 120k. between 2002 and 2005 their house doubled in value. by 2011 it was probably back in the shitter, and now is back where it was.

meanwhile, folks of my generation that were buying their first house in 2006 just got fucked, and still haven't seen a return to full value.

yay for me!

>FML


I wouldn't be so eager to beleive that housing will always double. we have seen wage growth stagnate and housing is as affordable as it has ever been with mortgage rates at sub 4% right now. if the housing market isn't booming right now.. there are very few things that will help it in the future.

We have too much wealth and wage disparity in the country right now for us to have a healthy economy.

The only people that can buy homes are super wealthy individuarls at this point, and, as investors, they aren't going to spend lavishly on dream homes and they aren't going to drive the prices up. They are only going to buy properties where they can make passive income from rents.

We are in a time period in America where we will more to a french style renaissance of the Rentier. But the estates of old, will be apartment complexes and the Rentiers will be REITS.

[Anonymous No.704899]

>>701932
Ela re OP, mathe ligo elinika yia na mathenis apo ton papousou. What other language do you speak mang?

[Anonymous No.704906]

>>701913
depending of the price of these apts i would hold them and rent them on very short contrats max 1 year to make sure i would get screwed. then i would sell the when at a good price and put all the money on VTI.

[Anonymous No.704913]

>>701913
...Fuck.

I thought this said "apartments" and I was seriously jealous because that put you 10-15 years ahead of me. Now I realize it said "apartment complexes".

>TFW dead parents and no inheritance.

[Anonymous No.704917]

>>701955
What kind of shitty financial advisor tells someone to sell prime real estate for a measly 4mil? You think that's enough to quit working? Take away 40% for taxes then divide that by 60 and tell me if you still think that's easy living.

[Anonymous No.704919]

>>701913
Learn everything you can about owning and managing commercial real estate.

[Anonymous No.704923]

>>704917
The funny thing is, most people earn half that (or less) in an entire lifetime of labor.

This is why we need to beat the majority.

[Anonymous No.704936]

>>704837
The majority of them were bought in the late 2000s just before the property market boom in Australia, since almost everyone lives in a capital city's here the population is so clustered making demand quite high near the CBD area. I only held them for about 7 years before selling off half then using the money to pay off the other half and end up with a debt free portfolio. However though if I could have gone back in the past I would have refinanced half of them instead of selling them, then I would have concentrated all the rent I was accumulating for each property to one property at a time knock down the mortgage on each property. I'd be sitting on 20+ properties as opposed to the 10 I have now if I had just done that instead.

[Anonymous No.705829]

>>704923
Yea, income distribution is a funny thing. However, it's highly sensitive to locale. When you look at national medians or averages, a lot of people live in flyover states with very low cost of living - places where acre properties with 2000+ square feet are selling for under $200k. So if OP wants to live in such a place, he can do it on $4 million. But there are concessions to be made, like having to drive 30 minutes to the nearest supermarket, being several miles to the nearest high school, and not having easy access to commerce. Also, as OP isn't married, the women are going to be extremely fat and butt-ugly.

Move to the more populated coastal areas and $4 mil is easily obtainable in 50-60 years of work.

The real kicker is that if OP is able to fill both buildings, his property is worth much more than $4million over the next 60 years. And by keeping them, he'll have a steady stream of income that would allow him to live virtually anywhere and not have to worry about money. He can then pass down this property to his heirs.

[Anonymous No.705867]

>>701913
He's a great businessman but you can't replicate him. Everything he says about value investing, Graham etc. is all bullshit. He markets himself as this buy and hold value investor when he's not that in the slightest. But 99% of people can't differentiate between what people say and what they actually do.

Just ignore everything he says but use him as an inspiration for making it big.

[Anonymous No.705886]

Hey OP, are you still here? I'm a huge studier of Buffett (I've read about seven or eight books on him and his investing method as well as probably 1,000 articles online). He's the real deal, and as Peter Lynch taught, you CAN replicate his success, quite easily, as long as you aren't stupid and stick to the rules. However, you will only replicate it with stock (equity) investments, not real estate or apartments, etc. That might get you some good starting capital though. Do you have an email? We can talk further.

[Anonymous No.705901]

>>705886
I'd argue that you'd have a higher chance of success replicating his success with realestate

[Anonymous No.705915]

>>705901
>>705901
Negative. You can't make 30-60% average annual returns with real estate, and there is too much capital involved in buying or building the property, and also too much time wasted trying to make your money back. With good stocks, you make around 20-60% average annual returns right off the bat without having to worry about making your investment capital back over many years.

[Anonymous No.705919]

I think that most people nowadays would rather RENT buildings.

And of those buildings they would rather live in or near the city and preferably in an apartment complex or condo.

But man, during the Great Recession, it was a fucking buyer's market. So many cheap real estate up for grabs.

Now? meh...

[Anonymous No.706018]

>>705915
That's a very narrow-minded view. Also, I feel like you have a skewed understanding of "return", as you mention that there's, "...too much time wasted trying to make your money back."

As long as you're making profit above expenses from debt/operating expenses, having debt actually boosts your ROE (in both directions, though).

[Anonymous No.706070]

>>706018
I would rather start immediately making 30%+ per year on my $1,000,000 (especially factoring in compounding) without paying anything than spend that $1,000,000 to make maybe 5-10% a year and be out of the million in all that time I'd have to wait to make it back before turning a profit. As to your ROE mention, Buffett specifically warns against investing in companies that take on a lot of debt in order to boost their ROE numbers (although in recent years he has been breaking this rule, but that's only because he has so much money to invest that he has to start breaking some of his own rules). Just my opinion.

[Anonymous No.706471]

>>701998
Well, they say nothing that improves the quality of your sleep is a bad investment. I prefer hand weapons and water purifiers myself, but it's the same principle.

(Wise Ol' Warran uses a billion dollars cash I believe. His worst case scenario is clearly different from yours or mine)

[Anonymous No.706628]

>>705886

Do you have any books you would highly recommend?

I've read Buffetology and The Intelligent Investor so far.

Thanks

[Anonymous No.706646]

>someone claims to not want to "fuck up this opportunity"
>asks for advice on a monumental life event on 4chan

Is this a fucking joke? Or are you really this retarded?

[Anonymous No.706670]

>>706070
30%+ ROI per year? That's a ridiculous ROI for stocks, and most likely cannot be sustainable for long-term investing. I don't know what la-la land you live in either. Show me YOUR 5-year ROI buddy.

[Anonymous No.706694]

>>701913
What kind of properties are they? How many units? What kind of build out? What are the cap rates, vacancies, and net income on them?

Seriously bro i deal with this shjt for a living you could be anyone with any building. Ill give you advice if youre still here.

[Anonymous No.706695]

>>705915
>You can't make 30-60% average annual returns with real estate,
Top kek. Someone's never heard of a cute little thing called self storage centers.

[Anonymous No.706715]

>>705915
Wow you really know nothing about real estate. It wouldn't't be unusual to get those types of returns on big blocks of units or commercial property in general if you do you invest well and find the right deals. Ps care to lend me some of what your smoking, to believe that you can find stocks that give a magical ROI of 30% - 60% ?

[Anonymous No.706717]

>>704917
>36k per year

[Anonymous No.706798]

>>706471
> prefer hand weapons and water purifiers myself, but it's the same principle.
I have those too.
It's a given that you should have a long term food supply, provisions for defense etc

[Anonymous No.707187]

>>704846

this is nonsense, property prices have not doubled in the last 3-4 yrs in the US

[Anonymous No.707195]

>>707187

depends where you live, land value in the SF bay area has skyrocketed but that's mostly because the now desolate central valley is having a huge exodus into it

[Anonymous No.707202]

>>701913
Be one of richest man in the world
Still can't buy into immortality

[Anonymous No.707295]

Same poster as >>705886 here with a different ID.

>>706628
I'd reccomend The Warren Buffett Way (plus the Workbook), How To Pick Stocks Like Warren Buffett, as well as One Up On Wall Street as well as Beating The Street by Peter Lynch.

>>706670
>>706715
Peter Lynch averaged 29+% annually for thirteen years. Walter Schloss made 20% a year for his whole life just by buying stocks with P/Bs under 1 (without looking at anything else). David Tepper's top 20 long term stocks (if you had invested quarterly as his investments were made public) have averaged 57% per year since 2000. Warren Buffett has promised that if he had smaller capital to invest, he could make at least 50% a year easily using the rules he uses now. You people sound like iHaz and other soccer moms who are convinced making 3-4% annually on index funds (idiot investing) is a great thing. I bet you both drive Crown Victorias too.

[Anonymous No.707467]

>>707202
If he did, do you think he'd tell you?
The plebs would be an uproar with the GIBS ME DAT.

[Anonymous No.707485]

Rent one of them out to someone and live in the other one. If you have a place to stay already rent both. It's not that hard.

[Anonymous No.707487]

>>707295
>Walter Schloss made 20% a year for his whole life just by buying stocks with P/Bs under 1 (without looking at anything else)

Oh, and those with a ten-year track record

And no long-term debt

And at or near its 52-week low

And with high insider ownership

Again, please post YOUR 5 year ROI or forever be a buttblasted fuccboi who's outperformed by so-called soccer moms with their idiot investing.

[Anonymous No.707564]

>>707295
>>707487
Hi, I just entered some of that criteria into google's stock screener and I found this company:

KBAL
Price to book: 0.91
Total Debt/Equity: 0.19
VP just bought 1000 shares in Feb

What do you guys think?

[Anonymous No.707570]

>>707295

well shit, now I feel stupid with my 12% annual ETF funds.

[Anonymous No.707602]

>>707564
I don't think you should rely on Google's screener. I see: 407 million market cap / 146 million book value of equity = 2.78 price to book

Google's scanner is using old year end data. KBAL is on a 6/30 fiscal year end. They did a spin off in 2014Q4 that knocked 300 million off book value

You dun goofed. Stop trying to be Warren Buffett and stick to indexing.

[Warren Buffer No.707604]

>>701913
Three things:

1. invest for the long term (value investing)
2. only invest in things that you know well
3. only invest in companies with a durable competitive advantage

There! Now you dont have to read anything by/about him ever again!

[Warren Buffer No.707612]

>>701932
If you want to become a true "class act" expert in running, managing and investing, torrent CCIM materials, or even better take CCIM course... you dont have to get the certifications because you're not an industry professional but the CCIM shit is fucking awesome. Also, CPM coursework for property management.

If you do get your certs though you can become a highly paid real estate consultant, especially in the commercial real estate sector

[Anonymous No.707686]

>>707602
:(

It's not as fun though.

Also, any recommended reading?

Finished: The Intelligent Investor.
In Progress: The Essays of Warren Buffet
Backlog: Random Walk Down Wallstreet

[Anonymous No.707695]

>>707604
lol you literally just swallowed all the spew on Buffett without a second thought didn't you?

Go away and study Buffett's partnerships and Berkshire Hathaway and realise he does nothing like what you suggest. Nothing in the slightest.

[Anonymous No.707697]

>>707686
Judging by the thought process you used to purchase KBAL, I'd say read The Intelligent Investor again, then read it again. And one more time for good measure.

Or try to buy stocks priced 0.33x book value. This way when you fuck up and buy 3x higher than you thought, you'll at least be buying at book.

[Anonymous No.708231]

My father owns 1 apartment and 2 complexes totally 8 apartments (2 small ones, 2 medium, 4 large) pure for renting. I think total worth is around 1.5 mEUR. I know he is a great business man but not sure what his investment is. With some smart loans I think he is making 15+% on his equity in the buildings. Any ideas how I can get him interested in involving me and doing a 4th complex together?

Also a lot of the suggestions in this thread hit home and are in line with what he is doing. E.g. using experts to fix stuff. However the rental agencies who are finding tenants suck and I currently have two friends living because I was so much faster. Any good suggestions for a Dutch real estate firm? Also he is quite passive with rates preferring good tenants over a small increase in investment. Your thoughts?