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I wouldn’t mind if it wasn’t priced so high (what isn’t these days). Assets have downsides too. Insurance, taxes, maintenance, and general overhead in the sens
by conductr 5y ago
I wouldn’t mind if it wasn’t priced so high (what isn’t these days).
Assets have downsides too. Insurance, taxes, maintenance, and general overhead in the sense that they are significantly less passive. I don’t get the “nothing backing it” part, maybe it’s not tangible but the brand here does have massive value and all but guarantees substantial gross sales year after year.
- dvt 5y ago> I wouldn’t mind if it wasn’t priced so high (what isn’t these days). It's funny, to me it seems extremely cheap. With $2M, you can basically guarantee 100k/yr in perpetuity while being hedged against MMT interest-rate-fiddling, money-printing-induced inflation, a crypto crash, a stock market crash, a housing bubble crash, a tech bubble pop, etc.
- hodder 5y agoThis was my thinking. Top line risk on a staple consumer asset that’s been around over a hundred years, and can scale rev with inflation. No margin risk. Seems very cheap. Can prob borrow modestly under the yield and write off the interest on a leveraged version of the asset.