Quote:
Originally Posted by checkthebudget
However, when the stock value collapses, what do you have? A piece of paper? If land value collapses, at least I could grow a garden or have a place to live...
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That could happen if you buy into something that's extremely risky, but not all stocks are like that.
In fact, some are so huge and stable that the only way they can entice investors is by paying dividends.
With stocks, it's also much easier to diversify than with brick and mortar type real estate. With a house, you're all-in. Just like buying only one stock.
Diversification is a very important safety fundamental in investing.
That said, I don't disagree about buying real estate either. In the end, we should all do a little bit of both. Easiest way is to invest in stocks is with low cost mutual funds.