The Story of Mr. Real Estate and Mr. Stock Market (100% Original Post)
Mr. Real Estate and Mr. Stock Market are brothers and back in 1992, their grandfather died and left each of them one million pesos.
“Invest the money and make it grow,” advised their parents. So that’s what they did.
Mr. Real Estate saw a property for sale right in the heart of Makati’s Central Business District. The 14 square-meter land was selling at P70,000 per square meter, which he considered a bargain because of its premium location.
Meanwhile, Mr. Stock Market went to the Makati Stock Exchange and bought Ayala Land, Inc. (ALI) shares, which at that time was selling at P2.95 per share.
Fast forward twenty years later, in 2012, the two brothers decided that they will travel around the world with their respective families.
To fund the trip, Mr. Real Estate chose to sell his Makati CBD property, which is now priced at P300,000 per square meter.
On the other hand, Mr. Stock Market chose to sell all his Ayala Land, Inc. (ALI) shares at the market price of P26.45 per share.
Who do you think made more money? Let’s see…
Is the stock market better than real estate investing?
The answer is NO.
Neither investment is better than the other and both are great investments if you know how to do it properly.
Real estate investments can be turned into rental properties and become a source of passive, monthly income. This is something that stock investments cannot do.
Also, it’s not really a question of which one is the better investment, but which investment can help you achieve your financial goals – and at the end of the day, the best option is to invest in both.
I guess the lesson here is that there are a lot of great investment opportunities out there, and it helps to learn about them instead of just assuming what’s good and what’s not, because you’ll be surprised at what you’ll discover, just like today.
I hope you enjoyed today’s post. Please share it to your friends if you did.
Data Reference: Mr. Edward Lee, COL Financial Chairman
Photo credit: globalcitizen01
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THANKS FOR READING! :-)
ReadyToBeRich
THANKS FOR READING! :-)
Amazing information. Thanks for Sharing.