Quote:
Originally Posted by Skid Row Joe
Since Berkshire-Hathaway Inc stock was selling for $1,700 a share, in the year I bought my home, and insurance premiums were about $750 a year, and I have plowed those dollars into shares of Berkshire stock every year since, the Berkshire is now worth close to $135,000 a share........which was the better decision........?  Those dollars now in shares of Berkshire.........or stacks of empty premium receipts.........? BTW......the home is fine......
Never bet against an insurance company.......they'll beat you every time..  |
This is like saying that as long as you put your money into a savings account and skip car insurance, you will have the money at the end of the day. Well, yes, you are correct. However, that is assuming that you don't suffer a big enough loss to mess your life up. IOW, while I am building up my nest egg with auto insurance premiums, I don't get into a situation where I need $300K and I only have $20K.
2 questions then:
1. How did you KNOW the stock will make money and not crash.
2. How did you KNOW you will not suffer a loss BEFORE you make enough money from the stock to cover any loss. IOW, how did you KNOW (100% sure) that you would be in this situation. Could a loss have occurred the day after you moved in before the stock made money?