Buffett: Problem with Trump is he never went right

Rana said:
Isn't that just messed up!
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Not really. Trump is in a different line of business than Buffet. Real Estate is a long term asset. You may have over paid for a property at the time of purchase but real estate developers often take the gamble that down the road that value of the property will out gain both inflation and the stock market significantly. So you can't just measure a real estate property based on it's current price. A lot can happen to change the price of that property down the road. I understand Buffet's point but it's really a gross over simplification.
 
Mott the Hoople said:
Not really. Trump is in a different line of business than Buffet. Real Estate is a long term asset. You may have over paid for a property at the time of purchase but real estate developers often take the gamble that down the road that value of the property will out gain both inflation and the stock market significantly. So you can't just measure a real estate property based on it's current price. A lot can happen to change the price of that property down the road. I understand Buffet's point but it's really a gross over simplification.
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Wow, look at you speaking knowledgably about my industry. I'm impressed.
 
Mott the Hoople said:
Not really. Trump is in a different line of business than Buffet. Real Estate is a long term asset. You may have over paid for a property at the time of purchase but real estate developers often take the gamble that down the road that value of the property will out gain both inflation and the stock market significantly. So you can't just measure a real estate property based on it's current price. A lot can happen to change the price of that property down the road. I understand Buffet's point but it's really a gross over simplification.
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Given his audience doesn't that make sense??

I am confident Warren knows how it works & seems to believe trump does not do it very well...
 
cawacko said:
Wow, look at you speaking knowledgably about my industry. I'm impressed.
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my late brother was into real estate. I learned a little from him. I'm currently in that sort of situation. There's a new housing development just a couple mile outside of Dublin where I want to buy a house. It lists at $225k but is assessed at $195k which has made financing it a headache but given Dublins growth rate I'm betting that the house assessed value will be far more than what I'll pay for it ten years from now. I think it's a reasonable gamble.
 
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