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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (3208)2/12/1998 10:37:00 AM
From: Ron Bower  Read Replies (1) of 78567
 
Paul,

Don't knock the real estate. I bought two warehouses in the '70s that are now returning annual lease payments equal to 60% of the investment in addition to 400% value appreciation. Farm land that brings in 6% above taxes, value gain doubled in 10 years in addition to underlying mineral deposits worth 25 times purchase. IMO Real Estate is still the safest and best long term value a person can invest in. IMO - REITs have gotten full valued in the last couple of years, but it's hard to ignore the 8% dividends and value appreciation.

I've always been a risk taker, but options and day trading are things I wouldn't consider. While on vacation I talked with a professional day trader that, with a dozen others like him, sits in front of a computer all day investing hundreds of thousands looking for 1/8, 1/4 gain on big caps. Trades are made instantly by computer tie to exchange. He makes over $100K a year ON COMMISSION. The layman investor can't begin to compete with an operation like this.

Ron
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