Author Topic: in what investable process are we still in the early innings  (Read 4666 times)

BG2008

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Re: in what investable process are we still in the early innings
« Reply #40 on: January 12, 2020, 08:35:51 PM »
Hey all:

I think we are still in the early innings of revitalization of the industrial Midwest and the return of manufacturing and commerce.

If you are patient and careful, you can buy real estate in the midwest for well less than what it costs to RENT on the coasts.  Obviously NYC & SF are always going to be important and expensive cities.  They will probably always have lots of business and activity.  HOWEVER, those skilled people with capital who can figure out what to relocate in the Midwest are going to have a competitive advantage (real estate & operating costs & wages are lower).  Those who figure it out and can do it are going to make a lot of money.

I knew real estate in & around Detroit was "silly" cheap.  In the past month, I've discovered another place that is perhaps even cheaper than Detroit, and arguably a better geographic/political location.  So it is not just Detroit, but probably the whole of the Midwest.

The Midwest should also start to become attractive to employees.  You can OWN your house, have a NICE house.  Heck, $300K can buy you a mini-mansion in a good school district.  What will $300k buy you on the coasts?  An ambitious & capable employee can accumulate capital & have a good standard of living in the Midwest.  What good is it to make double in NYC if you can't hold onto any of it?

Conversely, I think we are at or near "peak coasts".  That is, the prices/influence in NYC and SF are at or near their peaks.

If I am right, this is already starting...but will still take a number of years to play out.

Come on DTEJD1997, you just doing the "private real estate" equivalent of talking your own book.  You're pulling a Bill Ackman!  I see right through you!  Just joking.  I really have to come visit you in Detroit. 


SharperDingaan

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Re: in what investable process are we still in the early innings
« Reply #41 on: January 13, 2020, 05:23:10 AM »
Your train station example evidences that even Detroit recognizes that the future is electric, not ICE.
And the Jefferson plant evidences what you do over transition. Build huge & new; then transfer work from all the less efficient, higher cost and smaller plants, to pay for it. OK for maintaining profit, not so hot for the laid off workforce.

SD


« Last Edit: January 13, 2020, 08:21:44 AM by SharperDingaan »

james22

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Re: in what investable process are we still in the early innings
« Reply #42 on: January 14, 2020, 03:50:43 AM »
With the rise of SRI/ESG funds, we might begin to see a greater sin stock premium?
BRK, BAM l SV, EM l Energy l Fannie Mae, Freddie Mac l Stable Value, Cash Value of Pension

cherzeca

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Re: in what investable process are we still in the early innings
« Reply #43 on: January 20, 2020, 05:58:26 PM »
WSJ article on investable themes. https://www.wsj.com/articles/four-fund-themes-that-investors-are-likely-to-bet-on-11578279840?mod=hp_jr_pos3

mentions thematic etfs:  QTUM, TAN, PBW