Now that Google is $704 a share

[Mormon Red Death]

If you would have bought at the IPO in 2004 for $85 at lets say 500 shares you would be sitting with a nice profit of $309,500

Wowsers!

[venomous viper]

500 shares @ 85 bucks is $42,500. If you had bought $400,000 worth of real estate in many areas in Jan. 2004 (Bend, Ore, 106% in 5 years=21% per year) at the end of 2006, the value would've increased to $705,000+. That is a $305,000 gain, PLUS some tax savings each year of about 6K. Pretty close to same results overall, imo.

[ute4ever]

I'll see your Google, Forrest, and raise you an Apple.

It launched at $26 per share, is worth about $190 now, and has been split 2:1 three times. In other words, its worth is 58.5 times greater now: (26/190) x (2x2x2) = 58.5.

A similar investment of $42,500 (500 shares x $85) in 1984 would yield $2,498,250 today.

[hyrum]

500 shares @ 85 bucks is $42,500. If you had bought $400,000 worth of real estate in many areas in Jan. 2004 (Bend, Ore, 106% in 5 years=21% per year) at the end of 2006, the value would've increased to $705,000+. That is a $305,000 gain, PLUS some tax savings each year of about 6K. Pretty close to same results overall, imo.

And how much property tax, insurance, management fees or management time, maintenance costs, repairs, sales commissions, etc, would be involved in 5-years of buying-holding-selling this property? I have invested in both stocks and real estate, so I am not for/against either, but you have to include such in your P&L. That goes for short-term stock trading schemes, too (commissions, taxes).

[ewth8tr]

And how much property tax, insurance, management fees or management time, maintenance costs, repairs, sales commissions, etc, would be involved in 5-years of buying-holding-selling this property? I have invested in both stocks and real estate, so I am not for/against either, but you have to include such in your P&L. That goes for short-term stock trading schemes, too (commissions, taxes).
He doesn't pay taxes, what makes you think he pays those? :p

[venomous viper]

costs for me, and I appreciate them doing that.

[jay santos]

500 shares @ 85 bucks is $42,500. If you had bought $400,000 worth of real estate in many areas in Jan. 2004 (Bend, Ore, 106% in 5 years=21% per year) at the end of 2006, the value would've increased to $705,000+. That is a $305,000 gain, PLUS some tax savings each year of about 6K. Pretty close to same results overall, imo.

Throw in negative cash flow on rent, maintenance/upkeep, and selling costs and that takes your profits down. You'd also be making a 1 in 1,000 decision to know exactly when and where to buy and when to sell. Nobody, including the most adept real estate investors can predict this. Of course, the Google example is the same kind of luck, but you make you case as though this happens all the time in real estate.

I bought a rental with hardly anything down, fought a negative cash flow for six years, hell with renters, finally got out of it for barely what I had into it because I was facing a balloon payment. I guess I wasn't meant to be rich. :(

[Mormon Red Death]

I'll see your Google, Forrest, and raise you an Apple.

It launched at $26 per share, is worth about $190 now, and has been split 2:1 three times. In other words, its worth is 58.5 times greater now: (26/190) x (2x2x2) = 58.5.

A similar investment of $42,500 (500 shares x $85) in 1984 would yield $2,498,250 today.

at the rate google is going in another 20 years those 500 shares someone bought could be worth a lot more than Apple

[venomous viper]

Throw in negative cash flow on rent, maintenance/upkeep, and selling costs and that takes your profits down. You'd also be making a 1 in 1,000 decision to know exactly when and where to buy and when to sell. Nobody, including the most adept real estate investors can predict this. Of course, the Google example is the same kind of luck, but you make you case as though this happens all the time in real estate.

I bought a rental with hardly anything down, fought a negative cash flow for six years, hell with renters, finally got out of it for barely what I had into it because I was facing a balloon payment. I guess I wasn't meant to be rich. :(

Ok, I'll bite. Don't buy with neg cash flow, don't sell,don't do a balloon loan, just re-fi, hire good mgmt, and check areas that are good to invest in. Try any of these in the past and you win HUGE. Calif in most decades, St. George in 90's, Casa Grande AZ in 2000, Bend Ore last 5 years. All made OVER 100% increase in value in 5 years or LESS. If you put $10K down on any of them , when value doubled, you increased your 10K to 100K. That is leverage my friend, and many are doing it RIGHT now, like me. Over last 49 years, the annual avg PER year is 6.34%. If you want to not pay taxes legally and create wealth, real estate is your best choice, period.

[jay santos]

Ok, I'll bite. Don't buy with neg cash flow, don't sell,don't do a balloon loan, just re-fi, hire good mgmt, and check areas that are good to invest in. Try any of these in the past and you win HUGE. Calif in most decades, St. George in 90's, Casa Grande AZ in 2000, Bend Ore last 5 years. All made OVER 100% increase in value in 5 years or LESS. If you put $10K down on any of them , when value doubled, you increased your 10K to 100K. That is leverage my friend, and many are doing it RIGHT now, like me. Over last 49 years, the annual avg PER year is 6.34%. If you want to not pay taxes legally and create wealth, real estate is your best choice, period.

Thanks, I understand real estate finances. Too bad for me Utah late 90's wasn't one of those time periods. It's not as simple to catch one of those waves as you describe. You see real estate ramping up, and it might be a false ramp up and go back down. Another time, you might try to get it and it will jump 20% in a month or two while you're figuring out what to buy and what's happening in the market and you missed the ramp up. You also have to know what to get out. These things happen quickly and if you miss the high point, you could get hurt in a correction.

Also, you don't always know the cash flow's going to be negative when you have repairs and tenants stick you for rent. I believe in real estate, but it's not for everyone. When I get a larger portfolio, I'll get back in. For now I'm sticking with index funds.

Also, where do you get the 6.34% number? Sounds high.

[venomous viper]

I've been on the record with my next pick for areas to buy in for nearly a year. It is also doing very well. Buy and never get sell. Those that have read my book, know that is my feelings.

[Jeff Lebowski]

Any old idiot can look back and tell you what you should have done. What to do for the future, now that is the question.

[Mormon Red Death]

Any old idiot can look back and tell you what you should have done. What to do for the future, now that is the question.

Well I am not that old... idiot otoh you may be right

[Jeff Lebowski]

Well I am not that old... idiot otoh you may be right

LOL. No offense, buddy. I do this all the time myself. "Man, if just would have bought X ...."

[venomous viper]

People just get interested in different things. I make mine in real estate and helping people create wealth. Real estate will do it. Pick an area in sunbelt, median price home under 140K, growth expanding that way, buy and hold, and you will create wealth, period.... Some areas are pin point perfect, but any will do, if you give it enuff time.

[Flystripper]

I'll see your Google, Forrest, and raise you an Apple.

It launched at $26 per share, is worth about $190 now, and has been split 2:1 three times. In other words, its worth is 58.5 times greater now: (26/190) x (2x2x2) = 58.5.

A similar investment of $42,500 (500 shares x $85) in 1984 would yield $2,498,250 today.

I cry about apple and my experience is more recent...I bought it for 11 bucks a share in like 2001 and sold it for about 35 bucks just after the first Ipod was released. I figured the market was overpricing the impact of a simple little device that could only play music....boy was I wrong :( I made money but I kick myself for selling.

[ute4ever]

Any old idiot can look back and tell you what you should have done. What to do for the future, now that is the question.

The seers have said time and time again: rice, wheat, and potato "pearls" from the cannery...

[Mormon Red Death]

LOL. No offense, buddy. I do this all the time myself. "Man, if just would have bought X ...."

For me its not so much "I wish I would have bought". I work for startup entering its 4th year and growing like crazy (exit rate of ~300 million in Revenue for 2007). Since I have come on board all they have talked about is comparing us (as a startup solely) to what Google did.

"Google didn't have a financial system until year 5 only quickbooks"

"Google opened at $85 a share"

"Google market capitalization was 6 times revenue"

Now do I think our stock will be anywhere near google $700? No, I do think that when we have our IPO it will be successful and 3 years from that point our stock will be trading at twice to 3 times the IPO.

[Jeff Lebowski]

For me its not so much "I wish I would have bought". I work for startup entering its 4th year and growing like crazy (exit rate of ~300 million in Revenue for 2007). Since I have come on board all they have talked about is comparing us (as a startup solely) to what Google did.

"Google didn't have a financial system until year 5 only quickbooks"

"Google opened at $85 a share"

"Google market capitalization was 6 times revenue"

Now do I think our stock will be anywhere near google $700? No, I do think that when we have our IPO it will be successful and 3 years from that point our stock will be trading at twice to 3 times the IPO.

Sounds like a fun situation to be in. I hope it works out well for you.

[fusnik11]

For me its not so much "I wish I would have bought". I work for startup entering its 4th year and growing like crazy (exit rate of ~300 million in Revenue for 2007). Since I have come on board all they have talked about is comparing us (as a startup solely) to what Google did.

"Google didn't have a financial system until year 5 only quickbooks"

"Google opened at $85 a share"

"Google market capitalization was 6 times revenue"

Now do I think our stock will be anywhere near google $700? No, I do think that when we have our IPO it will be successful and 3 years from that point our stock will be trading at twice to 3 times the IPO.

You work for Omniture?

[Mormon Red Death]

You work for Omniture?

No, the only thing similar to who I work for and google is that fact that we are both startups with similar revenues at the points of maturing.

[NorCal Cat]

If you would have bought at the IPO in 2004 for $85 at lets say 500 shares you would be sitting with a nice profit of $309,500

Wowsers!

Don't remind me! Aarrggghh!!!

[NorCal Cat]

I cry about apple and my experience is more recent...I bought it for 11 bucks a share in like 2001 and sold it for about 35 bucks just after the first Ipod was released. I figured the market was overpricing the impact of a simple little device that could only play music....boy was I wrong :( I made money but I kick myself for selling.

Next time take a portion off the table, say 50%, and let the rest ride.

[ute4ever]

I pity the fool who sold the farm last fall and Googled it all. Have you seen the chart lately?

[MikeWaters]

I bought this stock in about 2001.

http://finance.yahoo.com/echarts?s=EWBC#chart2:symbol=ewbc;range=my;indicat or=volume;charttype=line;crosshair=on;ohlcvalues=0 ;logscale=on;source=undefined

Great pain.

[ute4ever]

If you would have bought at the IPO in 2004 for $85 at lets say 500 shares you would be sitting with a nice profit of $309,500

Wowsers!

I'll see your Google, Forrest, and raise you an Apple.

It launched at $26 per share, is worth about $190 now, and has been split 2:1 three times. In other words, its worth is 58.5 times greater now: (26/190) x (2x2x2) = 58.5.

A similar investment of $42,500 in 1984 would yield $2,498,250 today.

Bump

Google closed at $1007.95 today. Your 500 shares would now be worth $503,975.

Apple closed at $512.49. Your shares would have been $6,701,792.31.