Restauranteur A and B both have profitable restaurants and $1 million in savings. A invested his profits in stocks. B invested his profits in the building that houses his restaurant. A's resto is bankrupt. B's is on sabbatical. Vertical integration as a de-risker.
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Replying to @Molson_Hart
Plenty of entrepreneurs (my maternal grandfather and great grandfather among them) have made more from the appreciation on the buildings they bought for their businesses than they ever did from the businesses themselves.
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Replying to @moseskagan
My parents owned a mortgaged brownstone around 68th street in Manhattan in the early 80s. It housed their medical devices business. They sold it in the 80s and moved operations to CT. That brownstone sold for like 3x the business 30 years later.
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Replying to @Molson_Hart @moseskagan
Of course, had they owned that building in Youngstown OH, it would've been a different story :)
9:34 AM - 6 Apr 2020
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