Castanet

Static wrote:Any decent financial advisor will tell you it is much cheaper to rent than to buy.

Because if the client buys a home it tends to use up the free cash that would otherwise be invested by that advisor or they will cash in investments, thus lowering that advisors portfolio that he manages.

the first 10 years or so of a mortgage is interest (rent). Sure I would have equity, and I would be selling because house prices will not see 2011 prices for at 15 years.

Landm, many people have used their equity to invest in stocks which has made a lot of money for IA's. equity is fake money until sold.

Static wrote:Landm, many people have used their equity to invest in stocks which has made a lot of money for IA's. equity is fake money until sold.

And your definition of a "share" in a company is what? Equity or a pipe dream?
There is no way in hades that you are not underwater with your RIM shares. Since the time you first started pumping RIM here at over 20 bob a share, it would have been unrealistic for you to have averaged down enough to give yourself wiggle room to be in the black without a significant bump in price. You just ain't gonna see that kind of bump. If you have any savy whatsoever you will sell the day before BB10 is released because that will be the day the price is likely to be as high as it will ever get again. Shortly after the release I believe the stock will likely tank again because it will be far too little far to late for this company.

PS-My real estate portfolio, exclusively Okanagan, is down only 15% from it's highs. Since my average purchase is 15 years with no sells, I am still very comfortable with my fake equity. How's that equity in RIM stock doin for ya?

PSS-A savy investor would not be paying 2400 month rent for a house. He would be paying 1200 and combining the remaining available 1200 with the revenue rental stream of a nice property in a safe haven like Okanagan lands. Has worked well for me a number of times over. The financial statements look really good too. All non depreciated assets and listed at book, not market, so it's hardly fake equity. Do you look at your stock portfolio value at book or market as you define fake equity?

PSSS- Capital gains on a principal residence, which you do not have because you think stocks are superior, are capital gains free. Let's see how much of your portfolio CCRA gets when you have to sell to pay your rent.

Of course I am underwater in RIM. But I will still double my money within 2 years. The stocks in mg portfolio double my money every 7 years. Will real estate do that over the next 40 years? I don't think so.

You are correct, my stocks are equity. But, outside of RIM, they pay me a 6% (before dividend tax credit) dividend evry year. And, it costs me $30 to sell my equity. How much does it cost to sell a house? Furthermore, even though houses are tax-free, one still pays close to the purchase price in interest over the life of the mortgage. That doesn't sound like too much of an investment to me. If it was not for falling interest rates over the past 30 years, RE could not have experienced the price gains they have; it's impossible. Guess what? Interest rates have to go up. This, along with a few other reasons, guarantee that RE will be a horrible investment for decades. But, i am sure you are well aware of this thanks to your post graduate degrees

It's amusing to watch grown men to engage in a rather immature penis-measuring activity online.

It is very amusing.

Static wrote:Of course I am underwater in RIM. But I will still double my money within 2 years. The stocks in mg portfolio double my money every 7 years. Will real estate do that over the next 40 years? I don't think so.

Interesting that you say this with a certainty when it is, in fact, far from certain. I'm not necessarily saying that rim won't recover. However, in a situation like this, the odds are against them and your claim that you will double your money in two years will mean that rim will have to do much more than a doubling since you have averaged down a good deal.
I don't doubt your belief that this will happen......just the fact that you state it to others as being a fait accompli.
I have done much better on my real estate investments.....that only means that you are a better stock picker and I am a better real estate picker.

I do not think the odds are against them. They are growing quickly in Asia and the Middle East. They continue to generate a positive cash flow with $2.3B in the bank which continues to grow Q-ovr-Q. They also have zero debt and no need for Bay Street. The new phone is getting awesome reveiws. The stock is very cheap at the moment.

Cough, cough...up 10% today

Static wrote:Cough, cough...up 10% today

And how much further to break even????

Doesnt matter because it will happen and go far beyond that.

And, frankly, that belief is all that matters when investing. It doesn't have to be based on fact, it just has to be something to you believe in. No different than the different opinions on real estate or any other investment. Everyone has a crystal ball that says something different.

Hopefully it will work for you.

I'm basing my opinion on RIM's financials which, in fact, are excellent.

I am going to short it again the day BB10 is released. Should be good for a quick 15 - 20% profit as soon as the term "sales are not meeting expected levels" is uttered....... and it will be. This stock is money in the bank.