Quote:
Originally Posted by Exhibitman
You are confusing cash flow with value. Nothing you can invest in has intrinsic value. Income producing real estate is great until you get a deadbeat tenant who digs in like a tick and has to be evicted. Or 60% vacancy rates like we had in office space in recent years. Dividend paying stocks too, until the board decides to cut off the dividends or the company goes tits up. Bonds are great until the debtor declares BK and stops paying.
What does have intrinsic value? Food, shelter, drugs. Stuff you can use or consume. The rest is just value storage or mechanisms that produce the stuff you use.
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I suggest you read Security Analysis by Benjamin Graham.