Continued from Part 79 . . . Beneficial Beneficial deflation reveals itself through price declines, either generally (the Second Industrial Revolution) or specifically (e.g., ever-lowering prices for computer memory).
Continued from Part 78 . . . Lending – Notwithstanding the potential for inflation-related losses, there are many reasons to buy bonds. An obvious example might be when a major expense is expected in a couple of years (grand-daughter’s wedding, etc). The investor has the money now, but doesn’t want to put it into stocks…
Continued from Part 77 . . . In Emily’s mind, apartment investments are by definition secure. Banks don’t lend $1 or $2 or $3 for every dollar of down payment the buyer contributes if the investment is risky. But, of course, not all apartments are equally secure. We’re using “secure” in the Buffett sense, meaning…
Emily’s Notes: Risk You’ve heard the saying, “To win big you’ve got to bet big”? That pretty much incorporates the essential elements of risk right there: there are two sides to it. “Risk” is not the same as “loss” because there is also the chance of gain. A symmetrical risk profile has a 50% chance…
Emily’s Notes: Triple-Net Properties This last election was only the latest battle of a seemingly endless war, but Emily was at least temporarily relieved when Proposition 10, the “Local Rent Control Initiative” failed by a vote of 60% to 40%. That rent control measure would have allowed localities to layer new burdens on residential landlords,…
Emily’s Notes: Aspects of “Location” Emily slowly recognized that her notes on investing in residential income properties were not as well organized as she would like. They were in chronological order and that meant that it was not easy to access the data she might want to review. Easy access to data is important. One…
If you’ve missed some of the basic articles, guidelines on successful investing are in my book “Stairway to Wealth” available at LuLu.com. Continued from Part 36: Wrong! Capitalizing “Forecast” Rents
If you’ve missed some of the basic articles, guidelines on successful investing are in my book “Stairway to Wealth” available at LuLu.com. Continued from Part 35: Consumables vs. Assets, Part 2 Businesses: Generally, because of low barriers to entry consumables tend to be price sensitive. Commodities are a type of consumable that competes only on…
If you’ve missed some of the prior articles, basic guidelines on successful investing are in my book “Stairway to Wealth” available at LuLu.com. Continued from Part 34 – Supply: Elastic vs Inelastic There are two different kinds of supply. They are distinguished by how scarcity affects their prices. “Elastic” supply can be increased or decreased…
If you’ve missed some of the prior articles, basic guidelines on successful investing are in my book “Stairway to Wealth” available at LuLu.com. Continued from Part 70: Diversification Emily, after reviewing once again the positives and negatives of property ownership, thought there was no question about it: the benefits heavily outweighed the risks . .…