We’ve got real estate tycoons and we’ve got stock market tycoons. We’ve even got wealthy bond investors such as Bill Gross who pulls in over $100 million a year. Now that everything has recovered from the financial downturn, I’d like to have an open discussion on which asset class provides the the most amount of wealth over the long run.
It’s important to realize there are no renter or cash tycoons. The return on rent is always -100% every single month. Meanwhile, we can finally get a decent 1.45% or so on cash, especially since the 10-year yield is at only ~0.7% as of 2Q2020.
In this article I’ll explain why I have a preference for real estate over stocks (equities). Both have proven worthy of building great wealth over time.