Some things in the currency circle and some truths#Aboutfixed investment (2)

No comparison is not irritating.

You and your classmate, two people, made different choices 18 years ago. You chose to take a loan to buy a house - to invest in real estate; and your classmate chose to invest in Moutai stocks - because he is a fool, so he can only Free access to free advice from the smartest people on the market... Now, 18 years later, how do you compare?

Assume that you bought real estate in Beijing. In recent years, Beijing's real estate price growth has been the strongest in the country, with an annual compound growth rate of about 18%. After rounding, it is equivalent to an increase of 20% in the value of your real estate in the past 18 years. Times! Looks really amazing! However, in fact it is not so optimistic. Because you need to pay interest, it is equivalent to buying a property at twice the price, so the growth you can capture should be 10 times rather than 20 times. Also, it’s only been 18 years, and the loan has a total of 30 years. You have paid off the principal in the first few years, but now at least half of the interest has not been paid off. In other words, what you actually own during these 10 times It's just 3/4 of it, that is, 7.5 times... This is even if you have a very good time to enter the market before housing prices take off! For those who only started investing in real estate in 2018, looking forward to 2036, no one can guarantee that they will still have such high returns, right?

What about your classmates? The Moutai stock in his hands has increased 180 times in the past 18 years! This is equivalent to an annualized compound growth rate of 33.45%! And your stupid classmate didn't just buy the lowest price at the beginning, but gradually invested in it over the years. So, his growth will not be as much as 180 times, but it will definitely be about 40 times. .

Doesn’t this comparison seem a bit excessive? In fact, there are even more desperate ones, which will make you angry to death:

● Your property is indeed an asset, but its liquidity is close to zero;

● Your classmate's stocks are also considered assets, but their liquidity is almost 100%.