vcardinalis

Comments by vcardinalis

It's Not 2004 Anymore, Dorothy; and Your Little IB Shack Ain't Worth a Plug Nickel

I always just figured purchasing something you don't value is a stupid decision. Most people who invest in real estate do so with the intent of reselling--not with any satisfaction with what they'd do with the item if they couldn't. They go "well, I'd still have the house, which is worth something", but they've traded in years of their life in that house for, well, more years in the future of their life in that house--which they only bought so they could sell it back. Likewise, buying stocks in companies you don't believe in = stupid. Surely it seems kinda crazy to buy something on the basis that -other- people would value it. You can never know what other people will or won't value tomorrow. People aren't random, but they're reasonably chaotic, and it just isn't intelligent to use their present attitudes as future indicators. Not about stocks, not about houses. They're all free to unload their investment--just at a loss (or breakeven or a small win; a lot of people -could- make money on their house at this point, just not "enough"). So they'll hold onto the home and pray the price swings up again--the entire time wishing they lived in another city or another home. It's this idea "I've invested so much in this, it'd be insane not to follow through on it". Somehow it is a frequent mistake to look at past losses with horror and ignore present losses; some things -won't- swing up again though, and some losses just need to be cut.
— December 16, 2008 5:20 p.m.

Relic

Thank you.
— December 7, 2008 1:59 p.m.