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Growth isn't necessary to make something a good investment. Imagine you are investing in a single mortgage: you get a little income each month, and after 30 ye
by ahupp 6y ago
Growth isn't necessary to make something a good investment. Imagine you are investing in a single mortgage: you get a little income each month, and after 30 years it stops completely. Essentially the value goes to zero! But the stream of income is what you care about. Aramco is similar; it will kick off income every year in dividends and eventually be worth zero.
- willis936 6y agoIt’s the opposite of growth. Would you buy a house if you knew it wouldn’t be there in 20 years?
- bobthepanda 6y agoPeople do this with cars and those depreciate the moment they get off the lot. Japanese homes have a lifespan of 30 years.
- CydeWeys 6y agoYes, if I get my money's worth out of that 20 years. Hell, I'm currently renting an apartment and I don't own shit now, let alone 20 years down the line.
- tomp 6y agoI agree. But in the UK people routinely buy houses/apartments on leasehold which means you only "own" it for e.g. 99 years (sometimes less). Crazy if you ask me, "normal" if you ask them.