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The Compound and Friends

Your House versus the Stock Market with Josh and Ben Carlson

The Compound and Friends

Josh Brown

Investing, Business News, News, Business

4.72.2K Ratings

🗓️ 3 April 2019

⏱️ 8 minutes

🧾️ Download transcript

Summary

"Home ownership is often called both the American Dream and the biggest investment of your life. It’s debatable whether a house is truly an investment or not, especially when we’re talking about your primary residence." Ben Carlson, institutional asset management chief at Ritholtz Wealth Management did a post about why comparing the price appreciation in housing with the stock market is not a great idea. Downtown Josh Brown gets him on the phone to explain exactly why investors and home owners should keep their feelings about their primary residence away from their asset allocation decisions. You can read more about Ben's take on real estate vs the stock market at his blog, A Wealth Of Common Sense: https://awealthofcommonsense.com/2019/03/real-estate-vs-the-stock-market/ Enable our Alexa skill here - "Alexa, play the Compound show!" https://www.amazon.com/Ritholtz-Wealth-Management-LLC-Compound/dp/B07P777QBZ Talk to us about your portfolio or financial plan here:  http://ritholtzwealth.com/ Obviously nothing on this channel should be considered as personalized financial advice just for you or a solicitation to buy or sell any securities. Please see this 3,000 word terms & conditions disclaimer if you seriously need this spelled out for you.  https://thereformedbroker.com/terms-and-conditions/ Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

If you're listening on with Ben Carlson of a wealth of common sense, Ben did a post about why real estate as an asset class and and your house price specifically can't really be compared to how the stock market is done and we

0:16.3

tweeted it out this morning and people are going crazy like hundreds of comments on this.

0:21.3

First of all, why do you think people react in such a big way

0:24.9

whenever you write about housing as an investment? It's such a, I mean obviously

0:28.9

there's this whole stuff about the American dream and it's the biggest investment of

0:32.3

your life but I mean it's such a

0:35.1

personal asset to you and people have such a personal stake in it so it's it is

0:39.2

crazy I shouldn't be surprised anymore but I kind of am every time I'm right about the housing market,

0:43.7

there's tons of feedback and tons of comments and questions and people pushing back, and it's

0:47.9

obviously a topic that strikes a lot of emotion for people.

0:51.9

So the best, to me, the best point that you make, and there's a lot of good points, and we'll

0:56.0

link to the post in the notes, but the best point that you make is that looking at the price

1:01.9

appreciation of your own house and then saying you see that was better than the stock market

1:08.2

It's almost like saying it's almost like saying I bought this one stock 30 years ago and it turned out to be Berkshire Hathaway.

1:16.9

Like it's almost like an impossible way of looking at it but people can't help themselves

1:21.6

because their only real

1:23.4

experience is their own experience yes and we're dealing with big numbers too and

1:27.2

then there's those stories where one my grandparents bought a house in the

1:29.6

1930s for three thousand dollars or whatever it and look at how much it's worth now.

1:34.0

So I think it's just it's hard for people to wrap their head around because it is such a big

1:37.8

number and they have this sort of big emotional investment in it.

1:41.6

But comparing it to stocks is just,

...

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