Another idea that I can’t document… - Posted by JT - IN (St. Barths, FWI)
Posted by JT - IN (St. Barths, FWI) on July 27, 2001 at 10:39:41:
Gary:
Is that Mcdonalds Corp., the famous hamburger giant, who only buys their RE, unlike much of their competiton, such as Burger King and others, who mostly rent, has made more money (net value and wealth), from their RE holdings, than they have made cumulatively on the burgers. They have invested this massive income machine in some of the best RE worlwide, and consequently, they have made an impenitrable financial machine with their RE holdings. This could be verified, if true, in their quaterly K1 reports for MCD, as required by the SEC.
I’m am sure that this argument would have had many more on the other side about 14 months ago, before the US equities market bit the dust. There has been much wealth created in the equities mkt, over the past 15 yrs, but as is always the case, many little guys got mashed in the market decline, cause about the time it looked fool proof, then Jo-Shmo with $ 100K of equity in his personal residence, took out an equity line, due to confidence in the RE mkt values, and great appreciation over the past several decades, to lose most of it after pouring it into the equities mkt at a top of the mkt. Personally, I came within a day or two of investing $ 50K, (not leveraged against any RE), into a bell weather stock, at $ 50 per share, (1000 shares), which was down from$ 100 per share, thinking it was a real deal. Currently, the stock is selling at $ 6.53 per sh, so I woould have only lost $ 43,500, plus transaction costs. I don’t think that I could buy a piece of RE and do this bad of job, with my eyes shut.
I will dig up the reference to my original post, upon my return from vacation, some time next week.
Just the way that I view things…
JT - IN (from St. Barth, FWI)