Yah, you and Lance....<G>
On another subject, this conversation is hilarious! From Mark-to-Market on capitalstool.com:
capitalstool.com
This is a real conversation. I didn't make this up. A phone call with my mortgage broker friend. Her name is Lisa. We got on the subject of stocks and RE.
Mark:
"Do you still have your CSCO?"
Lisa:
"Yes, I have 1000 shares"
Mark:
"Did you see it go to $29 last week?"
Lisa:
"Yes"
Mark:
"Why didn't you sell it?"
Lisa:
"Because my 1,000 shares used to be worth $80,000, and I can' sell it now at such a huge loss."
Mark:
"How did you feel when it was trading at $8 last year?"
Lisa:
"I'm in it for the long term"
Mark:
"What if it goes back down to $15?"
Lisa:
"I'll never sell it."
Mark:
"You'll sell it. You'll sell it at $5 when you can no longer take the pain. That's a typical retail investor. Panic out at the lows."
Lisa:
"Mark, there is a house here in Beverly Hills. You and I should buy it together. Its only $400,000, but it needs a total rehab."
Mark:
"I'm not interested in buying any real estate, at any price right now. Its going to crash."
Lisa:
"I'm in the mortgage industy, and all the experts, all the rich people, everyone I know says RE is going to keep going up."
Mark:
"Why is that?"
Lisa:
"Because there is no supply. Too many buyers. Not enough homes."
Mark:
"Yeah, sounds like CSCO in Feb. 2000. At $70/share, there was a shortage of sellers. Everyone wanted to buy. CSCO was going to $200."
Lisa:
"Mark, you really need to go in with me on this house. We'll double our money."
Mark:
"Sorry. I wouldn't be able to sleep at night owning real estate at these prices. When prices start to drop, 2 years worth of gains will be wiped out in 6 months. Just like CSCO."
Lisa:
"So, Mark, what are you doing with all your money?"
Mark:
"I'm buying gold."
Lisa:
"Are you crazy? Its over $400/oz."
Mark:
"You are right. Nobody wants to buy at $400. They won't buy at $500. And won't be interested at $600, either. When gold goes over $1,000, then everybody will be buying it, at any price."
Lisa:
"I sold my GFI stock today. Its gone nowhere for 6 months after you told me to buy it."
Mark:
"I doubled by GFI position today."
Lisa:
"What makes you think its going up?"
Mark:
"Its a technical reason. A Pots and Pans formation. Too complicated to explain."
Lisa:
"Sounds difficult. I think I'll stick to real estate. Everybody knows its going up."
Mark:
"What about your CSCO?"
Lisa:
"I'm holding it for the long term"
Mark:
"Might be OK if you were 22-years old. But at 45, you don't have much time to wait around."
Lisa:
"I'm not worried. I'll get rich on real estate. When I retire, CSCO will be back up to $80, where I bought it."
......................................
This is s true story. I could not make this up. Conversation happened an hour ago. |
