Tuesday, December 12, 2006

Fools, and the charlatans who lead them to their fiery deaths...

From sunny Southwest Florida's Herald Tribune, we have Area's higher-priced rentals harder to fill.

Realtor Ronald A. "Ron" Cornette serves as rental division manager for Wagner Realty in Bradenton.

The Wisconsin native attended Northwestern University and has been a Bradenton resident since 1971. He has had his Florida real estate license since 1978.

Q: Are landlords surprised that the recent increase in prices for the purchase of real estate do not translate into higher rental incomes?

A: A skilled and sophisticated investor doesn't expect rent to cover expenses.


Weep, weep in your graves, Graham and Dodd, for these fools have defined a "skilled and sophisticated" investor as someone who loses money on a monthly basis!

What kind of "investment" does not cover carrying costs? In fact, any shrewd investor knows that what matters is the yield after expenses (on a risk-adjusted basis.)

Some days it just doesn't pay to read the newspapers!

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