Quote from @Mark Cotter:
Quote from @Kevin S.:
Quote from @Devin Scott:
Quote from @Mark Cotter:
Yea because they started those companies. There's no person on that list that just invested in the stock market to get super rich. Buffet is the closest but he has controlling positions much of the time and he is an operator.
I agree. The super rich are the ones who founded their companies. The rich are the ones who invested early in them.
I used to be under the impression that you make money investing in stocks and thru' compounding. True. That's what Warren Buffet tells everyone. That's how he became a very high net worth person by age 50. I believe his REAL high net came about not by compounding in stock market but by actually buying companies.
I once read that the wealthy people use stock market to beat inflation but real wealth is held in real estate. I'll find out what's true in about 50 yrs! LOL.
"I once read that the wealthy people use the stock market to beat inflation but real wealth is held in real estate."
I don't know where you read that but it makes no sense. RE is a far better hedge against inflation since it's a real asset. Many companies are negatively affected by inflation and their stock price will fall.
If you read my entire post rather than the snippet that was pulled out of it you will see my point was in response to a post that claimed RE will make more money but takes more work. My point is that if you don't put the work in then of course stocks won't offer you the return. There is a lot more to investing in equities than index funds and buy and hold and it takes a lot of work. The other point I made in this thread was that IMO treating these 2 investing areas as alternatives to one another is the wrong way to look at it. I would first look at what you are trying to achieve, if it's personal wealth then stocks are likely best, if it's generational wealth then RE is likely the best. People should aim to do both.
Mark, I don't disagree with you. It's just something I once 'read' which doesn't make sense since inflation is (used to be) about 2% and stock market return is much more.
I think the author was kinda over exaggerating to make a point to us ordinary folks that compounding makes us 'rich' but the real wealthy people did not become real wealthy via stock market but by founding their companies. And supposedly the author researched that these super wealthy individuals after they founded their companies did not have their money in stock market anymore but rather parked their wealth in Real Estate. Stock market is for us ordinary folks to keep buying into for the 1%.
The few posts I read coming from you I hold it in high regards. As for me I am now getting involved in RE, albeit a little late. Like I said, in about 50yrs I'll (or my kids) find out if that author was right. LOL.
