I just came across this arrogant letter written by one of those young Wall Street managers who has just cashed out and retired at 37.
He is laughing at his customers.
He calls them dumb.
These folks are not dumb by our upscale standards. Some of them went to Harvard and got MBA’s.
But they’re dumb in one sense, and that’s they fell for the concept of easy money. Now they’ve lost that money.
They hoped to make a killing on the subprime real estate market in the hedge funds the "cowboy" managed.
But we know that’s really not the way to do it.
Real estate provides us with the best assets we can invest in. We can touch it, feel it, walk around it, love it or hate it, but it can appreciate over time while bringing income flowing toward our bank accounts now.
There are very few investments that can do that for you.
The problem with this young cowboy’s customers is that they bet on real estate and they bet wrong.
You can’t do that, unless you get very very lucky. I don’t believe in luck.
I believe in good solid business based on good solid decisions and profits. I believe in horse sense.
Real estate can give you the right numbers, but you have to work smart.
And yeah, it takes work. But if you love it….