Viper only go up in value

[Aevus]

No worries. Google and Amazon set for a 20 to 1 split. I believe Amazon is in June and Google in july

By expensive I meant based on the P/E.

Correct me if I'm wrong but for the last 50 years (or 100?) the average P/E is around 14. So when I see the NASDAQ filled with 100 or 1000 P/E stocks, I tend to see a huge bubble...

[Arizona Vipers]

Here's what I did to make money in the last 5 years. I took every dime I had, 1.4MM and used it all for down payments on 24 small homes here in the metro Phoenix area. Average price was about 200K. I bought them all on 10 year mortgages, the rental income paid for the mortgage payment. These houses are now worth $11MM and I owe 2.1MM. All from $1.4MM on down payments 5 years ago. The money I have with my financial advisor, stocks etc hasn't done jack shit, it can barely keep up with inflation. Do a little work with your money and you'll make 10X what you'll make in stocks. If I sold now I'd walk with $7.6MM profit. in 5 years from a $1.4MM investment. 442% increase in 5 years and it's climbing faster each month. I'm no genius, it's not rocket science, when I learned there were 200 Californians moving to Arizona every single day, a demographic with much more money than the average Arizonan I knew real estate was going to skyrocket. It's going up 3% a month with no end in sight. I'm waiting until the $11MM cash out values hit $14MM by the end of the year and I'm selling. The 2.1MM I owe now will be around $1.5MM then, so $12.5MM profit off of 1.4MM in less than 6 years. This is not including the recent huge cashflow we have been getting due to massive rent increases. I am blessed and very lucky to have saw this coming and jumped in on it, I told everyone I knew what I was doing and that they should do the same, even if they could afford only one down payment on a house. Nobody listened.

[Lawineer]

By expensive I meant based on the P/E.

Correct me if I'm wrong but for the last 50 years (or 100?) the average P/E is around 14. So when I see the NASDAQ filled with 100 or 1000 P/E stocks, I tend to see a huge bubble...

Nasdaq is obviously more tech stocks that will have higher P/E than most companies, but yes, I agree. I haven't put a dime into the market in about 6 months.

Here's what I did to make money in the last 5 years. I took every dime I had, 1.4MM and used it all for down payments on 24 small homes here in the metro Phoenix area. Average price was about 200K. I bought them all on 10 year mortgages, the rental income paid for the mortgage payment. These houses are now worth $11MM and I owe 2.1MM. All from $1.4MM on down payments 5 years ago. The money I have with my financial advisor, stocks etc hasn't done jack shit, it can barely keep up with inflation. Do a little work with your money and you'll make 10X what you'll make in stocks. If I sold now I'd walk with $7.6MM profit. in 5 years from a $1.4MM investment. 442% increase in 5 years and it's climbing faster each month. I'm no genius, it's not rocket science, when I learned there were 200 Californians moving to Arizona every single day, a demographic with much more money than the average Arizonan I knew real estate was going to skyrocket. It's going up 3% a month with no end in sight. I'm waiting until the $11MM cash out values hit $14MM by the end of the year and I'm selling. The 2.1MM I owe now will be around $1.5MM then, so $12.5MM profit off of 1.4MM in less than 6 years. This is not including the recent huge cashflow we have been getting due to massive rent increases. I am blessed and very lucky to have saw this coming and jumped in on it, I told everyone I knew what I was doing and that they should do the same, even if they could afford only one down payment on a house. Nobody listened.

That's awesome. Way to clean up house (no pun intended)! Well timed.

My very close childhood friend and I both came from similar backgrounds (not poor, but not much. We both graduated with a lot of student loans), both went to college (engineering me, CPA for him), grad school (law vs mba). He quit his job and went into real estate 5-6 years ago, buying, upgrading and renting low end multifamily (I got fired and started my own practice 3 years ago, lol). I consider myself extremely fortunate, but despite him having a wife and 2 kids (and I never had either), I'd guess he has 3-4x my net worth and more is more or less semi-retired before 40. He sent me a video of his oldest finally being old enough to fetch him beers while he slept in a hammock last week.

I've more or less come to the conclusion that the market is for wealth preservation and some slow growth, not anything else. I know a lot of wealthy people and a lot of very wealthy people. Not one of them got there by working hard and investing in the stock market. I have a restaurant that is netting about 85% of what we put into it (though, tomorrow is another day). It's kicking off good cash, but I'm hoping it continues to do this well for another year or so and we can sell it off. Unfortunately, we seem to be going the opposite direction with a second location (whatever, it's both other people's time and money).

After that, I'll probably follow your route. I'm not sure what the heck else is left to invest in out there. It's just such a crazy time to do anything or nothing with your money.

[finalleaf]

Housing seems to be a little bit of a bubble too, though in my area the higher interest rate has not deterred buyers at all. 1100 sqft 3bed 2 bath still selling for 300k over asking (1.4m+)

[Aevus]

Nasdaq is obviously more tech stocks that will have higher P/E than most companies, but yes, I agree. I haven't put a dime into the market in about 6 months.

Tesla's P/E (TSLA) at their lowest ever: 90 ... Still incredibly high (for a car manufacturer) and that's after record sales and a massive drop of -39% in the last few months. That stock was floatting in the P/E 500-1,500 for years... When they actually started to generate earnings, of course!

The market is crazy and the bubble is just starting to burst...

[StrokerAce]

I'm also thinking about getting a gun and dealing crack. Being a crack dealer, but not like a mean crack dealer, but you know, like a nice one. Just kind of friendly, like, Hey what's up, guys? You want some crack?

[ViperGeorge]

I'm also thinking about getting a gun and dealing crack. Being a crack dealer, but not like a mean crack dealer, but you know, like a nice one. Just kind of friendly, like, Hey what's up, guys? You want some crack?

Other favorite line:

I'm as hard as a diamond in an ice storm.

[Arizona Vipers]

Nasdaq is obviously more tech stocks that will have higher P/E than most companies, but yes, I agree. I haven't put a dime into the market in about 6 months.




That's awesome. Way to clean up house (no pun intended)! Well timed.

My very close childhood friend and I both came from similar backgrounds (not poor, but not much. We both graduated with a lot of student loans), both went to college (engineering me, CPA for him), grad school (law vs mba). He quit his job and went into real estate 5-6 years ago, buying, upgrading and renting low end multifamily (I got fired and started my own practice 3 years ago, lol). I consider myself extremely fortunate, but despite him having a wife and 2 kids (and I never had either), I'd guess he has 3-4x my net worth and more is more or less semi-retired before 40. He sent me a video of his oldest finally being old enough to fetch him beers while he slept in a hammock last week.

I've more or less come to the conclusion that the market is for wealth preservation and some slow growth, not anything else. I know a lot of wealthy people and a lot of very wealthy people. Not one of them got there by working hard and investing in the stock market. I have a restaurant that is netting about 85% of what we put into it (though, tomorrow is another day). It's kicking off good cash, but I'm hoping it continues to do this well for another year or so and we can sell it off. Unfortunately, we seem to be going the opposite direction with a second location (whatever, it's both other people's time and money).

After that, I'll probably follow your route. I'm not sure what the heck else is left to invest in out there. It's just such a crazy time to do anything or nothing with your money.

Agreed with all this!
Do you run your restaurant yourself? Like are you there all the time? Or you have a really good manager?

[Lawineer]

Agreed with all this!
Do you run your restaurant yourself? Like are you there all the time? Or you have a really good manager?

I have what I call operating partners. They're general partners that we pay a salary to handle circus day to day. I'm more involved on the spreadsheet side and higher level stuff.

[StrokerAce]

Other favorite line:

I'm as hard as a diamond in an ice storm.

Could make money either way. lol

[viperman4125]

Tesla's P/E (TSLA) at their lowest ever: 90 ... Still incredibly high (for a car manufacturer) and that's after record sales and a massive drop of -39% in the last few months. That stock was floatting in the P/E 500-1,500 for years... When they actually started to generate earnings, of course!

The market is crazy and the bubble is just starting to burst...

BA is the one to buy! NOW Boeing that is.

[Aevus]

BA is the one to buy! NOW Boeing that is.

loooove BA

back in march 2020: put options = 14,000% profit.

;-)

[ACR2NVY]

So whats my 16 stryker purple GTC worth ?

I'm interested. Shoot me a call or txt at 218-671-3864, name is Adam!

[Lawineer]

Tesla's P/E (TSLA) at their lowest ever: 90 ... Still incredibly high (for a car manufacturer) and that's after record sales and a massive drop of -39% in the last few months. That stock was floatting in the P/E 500-1,500 for years... When they actually started to generate earnings, of course!

The market is crazy and the bubble is just starting to burst...

Tesla is argued to be more of a tech company. They have an insane amount of data. I just don’t see that data being anything special in a few years. Every other manufacturer will have just as much if not more, soon.

[finalleaf]

Tesla is argued to be more of a tech company. They have an insane amount of data. I just don’t see that data being anything special in a few years. Every other manufacturer will have just as much if not more, soon.

Having worked in the industry, their self driving tech is also quite behind (contrary to what the general public thinks) and I don't see it being true self driving even in a geofenced area for a while

[Lawineer]

Having worked in the industry, their self driving tech is also quite behind (contrary to what the general public thinks) and I don't see it being true self driving even in a geofenced area for a while

I agree. They're really a marketing company.
There is absolutely no reason why OEMs shouldn't be eating their lunch. Powertrains are extremely simple and at this point, border line commoditized. And other than that, quite frankly, Teslas suck.

I wish I a) someone else made a 1000hp car too (like a M5, CTS-V, whatever) that didn't have Teslas bullshit interior and b) I had garage space for one.

[Mikey]

Here's what I did to make money in the last 5 years. I took every dime I had, 1.4MM and used it all for down payments on 24 small homes here in the metro Phoenix area. Average price was about 200K. I bought them all on 10 year mortgages, the rental income paid for the mortgage payment. These houses are now worth $11MM and I owe 2.1MM. All from $1.4MM on down payments 5 years ago. The money I have with my financial advisor, stocks etc hasn't done jack shit, it can barely keep up with inflation. Do a little work with your money and you'll make 10X what you'll make in stocks. If I sold now I'd walk with $7.6MM profit. in 5 years from a $1.4MM investment. 442% increase in 5 years and it's climbing faster each month. I'm no genius, it's not rocket science, when I learned there were 200 Californians moving to Arizona every single day, a demographic with much more money than the average Arizonan I knew real estate was going to skyrocket. It's going up 3% a month with no end in sight. I'm waiting until the $11MM cash out values hit $14MM by the end of the year and I'm selling. The 2.1MM I owe now will be around $1.5MM then, so $12.5MM profit off of 1.4MM in less than 6 years. This is not including the recent huge cashflow we have been getting due to massive rent increases. I am blessed and very lucky to have saw this coming and jumped in on it, I told everyone I knew what I was doing and that they should do the same, even if they could afford only one down payment on a house. Nobody listened.

I've been tempted to get into the rental side, but when I crunch the numbers they don't seem to beat my portfolio. What would you do with 600k?

[viperman4125]

Buy 1000 shares of BA. 1000 Shares of Apple. 1000 Shares of IBM , 5000 shares of BBWI and the rest in Tesla.
In one year will will have more than doubled your money. more like 3x.
Dave

[Mikey]

I'm currently 20% apple, 16% Microsoft, 5% Nvidia, 3% tesla

I

[Lawineer]

Buy 1000 shares of BA. 1000 Shares of Apple. 1000 Shares of IBM , 5000 shares of BBWI and the rest in Tesla.
In one year will will have more than doubled your money. more like 3x.
Dave

This is very speculative (and likely bad) financial advice.

This is not financial advice.

I'm more or less over individual stocks aside from a little money on the side. I'm more or less going with SPY and vanguard stuff.

[StrokerAce]

This is very speculative (and likely bad) financial advice.

This is not financial advice.

I'm more or less over individual stocks aside from a little money on the side. I'm more or less going with SPY and vanguard stuff.

My Vanguard has gone down faster this year than a groupie back stage with Motley Crue. My Fidelity is worse. Imagine your food as the Golden Corral buffet and the market is Rosey O'Donnell after missing lunch.

[Mikey]

I'm down 25% but 140% the past 3 years with vanguard. A good time to buy imo

[Lawineer]

My Vanguard has gone down faster this year than a groupie back stage with Motley Crue. My Fidelity is worse. Imagine your food as the Golden Corral buffet and the market is Rosey O'Donnell after missing lunch.

In the past year:

BA is down 50%
Apple is up 11%
IBM is down 3.05%
BBWI is down 32%

SPY is down 6%.

Individual stock picking is fun, but it's a bad way to make money long term.

[finalleaf]

I've been tempted to get into the rental side, but when I crunch the numbers they don't seem to beat my portfolio. What would you do with 600k?

I think one thing to note is the leverage that you get in real estate with the mortgages, really really really cheap leverage, so your gains are on top of very small principle.

e.g cant really compare 500k house (on 5% down and well used to be 3% interest) appreciation vs 500k in stocks appreciation if the leverage are different

[Lawineer]

I think one thing to note is the leverage that you get in real estate with the mortgages, really really really cheap leverage, so your gains are on top of very small principle.

e.g cant really compare 500k house (on 5% down and well used to be 3% interest) appreciation vs 500k in stocks appreciation if the leverage are different

This.

It's also exactly why, in very large part, housing prices skyrocketed. Low interest rates + huge leverage (ie: 20:1) + sketchy AF market + inflation fears = attracting a lot of big institutional and/or PE money. We had a significant amount of time between obvious incoming inflation and low interest rates. So people took the low interest money and bought assets they'd know would keep up with big inflation.

Institutions were getting close to free loans so they levered the hell out of them (mortgage) in what is considered one of the safest assets (real estate). If they got a 2% loan and real estate just tracked inflation (~8%) they are at 60% gains on that 5% down payment- and that's BEFORE accounting for rental income. Plus, they can depreciate based on the entire value of the property, so they probably won't pay any taxes on these gains for years.

IE (this is very simple and there are other costs like insurance, closing, taxes, repairs, etc):

$100k house
They put down $5k and borrow $95k at 2%.
They pay about $0.2k in interest.
The house appreciates with inflation to $108k
That's a gain of $3k on $5.2k investment. In reality, they made an unrealized $8k profit on $200. You have $12.8k of equity in the property.
Well everyone is doing this so it's a lot more than 8%/yr, but you get the idea.
Also, add rental income to this and it gets even more interesting.

Now here's the cool part. They let you depreciate the entire value of the building (granted, over 27 years), not just the 5% of it you have equity in.



That ending with higher interest rates + underwater used cars when things level out are going to be a dumpster fire. Gap insurance is going to get WRECKED. Not only will there be a ton of fraud, the "gap" is going 10x when prices crash.