- There are many examples of simple investments that returned more than 1,000%, some even 10,000%, over the last few decades.
- In order to take advantage of such investments, you have to look at the extremes of what could happen in the next few years that aren’t included in the current economic models that use statistical averages.
- Statistical averages are what you have to look for to protect you from negative surprises and open your portfolio to extremely positive surprises.
A friend of mine just sold his home in Central London for 2.4 million pounds which is an average price in London. However, what’s interesting is that he bought the property in 1996 for just 160,000 pounds. In just 20 years, the value of his London property increased 15 times.
Another example I have is from a recent WSJ article where a Park Avenue penthouse is selling for about $18 million. The funny thing is that the property was empty for 27 years as it was owned by the Former Republic of Yugoslavia which also allows us to know what the purchase price was in 1975. The purchase price was $100,000. In 40 years, the value of this property in New York increased 180 times. More →