Real estate, a lousy investment? - Warren Buffet

Every generation needs a revolution - an entrepreneurial revolution

Do you agree with the guy?  He is in the top 20 wealthiest person in the world.

To some extent he is correct:

1.  Most people know exactly the pricing for real estate in the vicinity and some sectors are expert.  Unless you are a loan shark or "ilit" bank (bank that loves to foreclose way way below the market price) chances are there is not much of price advantage you can have.

Land and condos are valued at 6 numbers in MM, in the province it is typical to for raw land for 4 numbers

2. The tax angle.  At least in the PHL, buying and selling does not favor the investor because of stiff Capital Gains tax(8% Doc Sci included) and VAT of 12%. (for capital goods)   (We backed out of a deal then because 70% of the SP would just go to taxes.    BIR updates its zonal valuation frequently and sometimes their values are higher than actual transactions.   The govt is raking in with the CGT and VAT.   A condo in Cubao which is P12M at market, was being offered at steep discount of P7M.  However after computing for bank financing, HoA fees, commission, etc. the margins would be only single digit if we flip.   Hence the doomed condo situation in the PHL

Such situation of say 6 numbers price for land in MM say a 500 sm residential property being sold at P100M would be profitable for residential owner selling to a developer.  But maybe not to a developer or land banker.   

What do you think?  Lately we shied away from land development.  Especially on land sale approach.

Who were fired from company they founded?

Every generation needs a revolution - an entrepreneurial revolution

Who were they:?

1.  Steve Jobs  from Apple

2. Clessie Cummins from Cummins

3.  Elon Musk from X.com

That means they are good, and maybe they are too enterprising and taking on too much risk.  

I too was ousted in the coup by family members due to jealousy, and rivalry.  I was ousted by the very siblings for whom the company was founded for.  That is life boys.   It happens all the time

Superb Entrep classes at GSB

Every generation needs a revolution - an entrepreneurial revolution

This is a self praise.  No one has praised the hard work this post did at a GSB (probably contributed to high enrollment then).  Had courses in Cebu, Subic, Clark and the main campus in Makati.  This post taught for a decade plus

There was a lot of work for the students:

Topics subjects covered:

     1.  Self improvement:   speeches, self affirmation

     2.   Opportunties - scanning

     3.  Innovation

     4.  Business operations:   accounting, finance, marketing

     5.  Leadership

Individual:

    1.  Book report, videos on self affirmation

    2.  Making a 2 minute speech in class

    3.  Electronic assignments and submission

    4.  Preparing and submitting business plan

    5.  Serependity walk -  listing as many as possible business opportunities for an assigned area

Group:

    1.  Innovation (dry cooking)

    2.  Inviting an entrepreneur in class to tell stories about themselves to inspire tudents

    3.  Group report on a resto or food stall at Mercato or Makati Av.

When the management of the school decided to have grades submitted on time (that meant no time to submit a business plan) this post quit teaching.  This post believed that preparing a business plan is an essential gtaduation skill for an Entrep graduate

This class on three  occasions sponsored  talks that involved the whole GSB:    that of Dr. Belo, the head of BCDA on social entrepreneurship, and a famous motivator.   This was an entrep class project, not even that of the Management Department or the GSB

Thankfully the GSB sent me and several others to Bangkok and Seoul to advance my knowledge on the subject matter.  We attended lectures and workshop by Stanford University and Denver Colorado U.  

If this will be revived, I may teach again.