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Those seats rent for 1 1/2 to 1 3/4 per cent per month. If there is a great
demand I have seen them go to 2% per month. Put those numbers in your machine and
compound that. Now see if the return is better or worse. by the way every time
the seat price goes up so does the rent. Like, mark to the market. If he paid
$12,000 for the seat and just rented it out, when the seat got to $300,000 his
rent would have been $4500 per month. You have to add all the income to get a
total return on invested capital. He would have surpassed almost any other
investment you can think of at this time other then the drug trade, and from what
I last heard, they haven't made that legal yet.. Ira.
"Norman E. Phair" wrote:
> Gitanshu:
>
> Thanks, you made me feel a little better. Even if I had done it I probably
> would have sold LONG before the top. If you buy a seat you usually do it as
> your cost of doing business. My regrets are mainly that I did not do it for
> the adventure of being where the action is. Something to reminisce about when
> I am in my rocking chair. Now i get enough adventure driving the LA freeways.
>
> Norman E.
>
> Gitanshu Buch wrote:
>
> > > came close to buying a seat on the Merk. in 1968, last sale
> > > >at the time was $12,500. A few years ago it hit over $800,000. I hope
> > > >this is the only stupid thing I admit to on here.
> >
> > Norman
> >
> > You probably saved yourself some money.
> >
> > Assuming a "few years" is 3 years, and the "Merk" = the Chicago Mercantile
> > Exchange - over a 28 year period from 1968 to 1996, your CAGR would have
> > been 16% if you actually sold for 800k.
> >
> > Just 2 more years later the bid on the seat is 325k, which works out to
> > 11.5% compounded for the 30 year holding period.
> >
> > I'd stick to stocks.
> >
> > Better ROI even if you consider lease income, and less physical stress for
> > equal/superior risk.
> >
> > In spite of 1972-79, 1987, 1991, 1997, 1998 and who knows what may come from
> > now on.
> >
> > Just a cost-benefit opportunist's thought.
> >
> > Gitanshu
> >
> > [Image]
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