So I was recently listening to some additional presentations from an audio series about investment. This particular installment was called “Real Estate and Collectibles.” I found out that it was actually two presentations: one about “The Collectors,” and one about “The Real Estate Tycoons.” Both were as interesting as I expected them to be, and brought back fond memories of my days as a business major.
The Collectors
The presentation about “The Collectors” talked about the unique form of investment known as “collecting.” This is exactly what it sounds like: people collect various rare items of great quality, and (ideally) sell them for a handsome profit. This includes collections as diverse as great works of art (such as paintings and sculptures), to collecting rare baseball cards. Some of these can eventually grow to millions of dollars’ worth of collectibles. This style also includes collecting stamps, rare coins, rare books, and many other objects. Some of these investments are a bit more volatile than others, but the goal of all of these things is the same: collecting something enjoyable with the plans of selling it later. Investors in this style are advised to pick an item that they enjoy, and focus on that. Their investments will be more likely to succeed if they do so. In the time between buying and selling these exquisite objects, you have some inherent pleasure from owning them. Thus, even if the investments go south, the purchase may not have been a total waste. One of the downsides of this method of investment is that it is more subjective, and thus harder to measure and quantify. It is based on all kinds of intangibles, like the popularity of the object – and whether that “popularity” is likely to endure. But some people do indeed earn a decent profit from investing in this way, particularly if they know a lot about the product in which they’re investing. It can also be rewarding simply as a hobby, and (again) is more likely to succeed if it also works on the hobby level.
1952 Topps Mickey Mantle baseball card – currently the most expensive baseball card in the world
The Real Estate Tycoons
The presentation about “The Real Estate Tycoons” was a very different kind of presentation. It basically gave a history of real estate investing in the United States. They start out with the infamous story of how Manhattan Island was “purchased” from the Native Americans for about $24. Many have noted what a wildly successful investment this would now be, although they also (rightly) point out the dishonest aspects of this deal. New York City continued to be the playground of real estate tycoons for centuries to come. Thus, much of this presentation is focused on New York City, giving biographies of famous real estate investors in that area. These investments go over a long period of history, mostly focused on the nineteenth and twentieth centuries. This presentation has a strong element of human drama, as it fleshes out the various tycoons – some of whom were honest, and others of whom were dishonest. Regardless, there is a brief one-sentence mention of the future president Donald Trump, although he is not developed herein as one of the characters. This presentation came out in 1997, long before Trump had ever run for president. There is a great diversity of styles in real estate investing, and entire college majors have been built around real estate management. It may be one of the most specialized areas of finance today. Many have lost big in the real estate market, but those who know what they’re doing may be able to realize a handsome profit from so doing. As with other styles of investing, real estate investors will have to do their homework, and make sure that their intuitions are backed up by some hard data.
The Empire State Building (1932), whose construction is mentioned in this audiobook
Both of these presentations were quite good, and would give useful information for someone wanting to invest their own money. But I don’t have any plans to engage in investing myself, and mainly just wanted to round off my knowledge of business (and particularly finance). Thus, I found these presentations useful – not to mention interesting.
If you liked this post, you might also like:
Part of an audiobook series
Secrets of the Great Investors
Real Estate and Collectibles
Others to be covered later
See also the audiobook series
Great Economic Thinkers
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