“LA Renter,
How about the people that bought MSFT in 1986 and never sold any?
sdr
(MSFT stockholder since 1986)”
I moved down here from Seattle, many of those people are my friends. The people that bought MSFT in 1986 and didn’t sell have a boat load of money. By the way congratulations on that investment, I bought ARBA in 2000 (sarc).
Here is what I said
“I mean we could also discuss that buying Microsoft stock in 1989 was a fantastic move. Then there are the people who bought MSFT in early 2001 and sold at a loss in 2003 because they had to liquidate their investments.”
Here is the point I was trying to make
“Here is the way I see it, if you buy right now you are facing significant risk within the next 6 years. Life happens, loss of job, divorce, sickness, etc. If you are forced to liquidate that RE purchase made now within that time frame you could be facing significant financial losses which will be difficult to recoup.”
Let me qualify this by saying that homes and stocks are two very different animals as most on this board agree. This is only an analogy. I am equating the person who is buying a home today with the person buying MSFT in early 2001. The risk you have buying at the top of any market is having to liquidate that investment in near term for any unforeseen reasons. Personally I am a relatively conservative investor (probably as a result of the ARBA 2000 lesson), I always look at the worst case scenario and ask myself can I take that hit. In the case of the current state of California RE, the answer is NO and I live in a two 6 figure+ household with nice chuck of capital gains from a previous RE investment.
Myito
I agree with Sdceller
“You’re not sticking to your guns. You keep changing them. I’m starting to see a repeating pattern of people specifically addressing your points and you coming back with something else.”
