Top 100 Investment Quotes

home buyers sometimes make the mistake of focusing on home acquisition as an investment and overlook quality-of-life factors such as proximity to schools, parks, extended family, and work—all of which are the aspects of daily life that make for a healthy, safe, and comfortable home.

Marx believed that as wealth becomes more concentrated, poverty will become more widespread and the plight of working people evermore desperate. According to his critics, this prediction has proven wrong. They point out that he wrote during a time of raw industrialism, an era of robber barons and the fourteen-hour work day. Through persistent struggle, the working class improved its life conditions from the mid-nineteenth to the mid-twentieth centuries. Today, mainstream spokespersons portray the United States as a prosperous middle-class society. Yet one might wonder. During the Reagan-Bush-Clinton era, from 1981 to 1996, the share of the national income that went to those who work for a living shrank by over 12 percent. The share that went to those who live off investments increased almost 35 percent. Less than 1 percent of the population owns almost 50 percent of the nation’s wealth. The richest families are hundreds of times wealthier than the average household in the lower 90 percent of the population. The gap between America’s rich and poor is greater than it has been in more than half a century and is getting ever-greater. Thus, between 1977 and 1989, the top 1 percent saw their earnings grow by over 100 percent, while the three lowest quintiles averaged a 3 to 10 percent drop in real income.

Son arrived at Yahoo’s office looking as slight and uncommanding as ever. But he brought a bazooka. In a bid without precedent in the history of the Valley, he proposed to invest fully $100 million in Yahoo. In return he wanted an additional 30 percent of the company. Son’s bid implied that Yahoo’s value had shot up eight times since his investment four months earlier. But the astonishing thing about his offer was the size of his proposed check: Silicon Valley had never seen a venture stake of such proportions.[21] The typical fund raised by a top-flight venture partnership weighed in at around $250 million, and there was no way it would put 40 percent of its resources into a single $100 million wager.[22] Private-equity investors and corporate acquirers sometimes made investments in the $100 million range, but in return they expected to take full control of companies.[23] Son, in contrast, would be a minority investor and on an unheralded scale. Because he had SoftBank’s corporate balance sheet behind him, he could pump in fully one hundred times more capital than Sequoia had provided when Yahoo got started. After Son dropped his bombshell, Yang, Filo, and Moritz sat in silence. Disconcerted, Yang said he was flattered but didn’t need the capital.[24] “Jerry, everyone needs $100 million,” Son retorted.[25]

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So it is with corporations. No matter how broad-minded we are, how dedicated to equal opportunity, we tend to hire and promote “our kind of people.” When morally derelict men get to the top of great corporations and stay there for a period of years, the evil they do does indeed live after

them. Inevitably they bring into the organization and promote to higher levels men like themselves. The moral cancer thus introduced cannot be extirpated simply by removing the evil genius at the top. It may take a generation under a good management to purge the organization of the unprincipled sharp-shooters brought in by a bad management. Hence it is unwise to look for a quick turnaround in any organization whose management has demonstrated a lack of moral principle.

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Labor also dominates stories of elite income at the next rung down. Although only three hedge fund managers took home over $1 billion in 2017, more than twenty-five took home $100 million or more, and $10 million incomes are so common that they do not make the papers. Even only modestly elite finance workers now receive huge paydays. According to one survey, a portfolio manager at a midsized hedge fund makes on average $2.4 million, and average Wall Street bonuses exploded from roughly $14,000 in 1985 to more than $180,000 in 2017, a year in which the average total salary for New York City’s 175,000 securities industry workers reached over $420,000. These sums reflect the fact that a typical investment bank disburses roughly half of its revenues after interest paid to its professional workers (making it a better three decades to be an elite banker than to be an owner of bank stocks). Elite managers in the real economy also do well. CEO incomes—the wages paid to top managerial labor—regularly reach seven figures; indeed, the average 2017 income of the CEO of an S&P 500 company was nearly $14 million. In a typical recent year the total compensation paid to the five highest-paid employees of each S&P 1500 firm (7,500 workers overall) might amount to 10 percent of S&P 1500 firms’ collective profits. These workers do not own the assets—the portfolios or the companies—that they manage. Their incomes constitute wages paid for managerial labor rather than a return on invested capital. The enormous paydays reflect what prominent business analysts recently called a war between talent and capital—a war that talent is winning.

There is never a wrong time to buy real estate. When times are good, people complain about the deals they have missed. When times are bad, they claim they can’t buy at the top thinking that prices will fall and, therefore, it’s not a good investment.

you want to build wealth and create financial freedom, you can’t just sell real estate; you need to invest in it personally.

Equally important, John Schaub (author of Building Wealth One House at a Time [McGraw-Hill, 2004]) and Jack Miller taught me that single-family rental houses are the best investment for the average investor because houses are so easy to buy, finance, manage, and profitably sell.

Do what others are not doing, and you’ll increase your profits tremendously. Go for preforeclosures. These are the true diamonds in the rough of residential investment real estate.

Code Section 1031 lets taxpayers roll the gain from the sale of their old investment property over to their new investment property; therefore, they do not have to pay capital gains tax on the increase at that time. This is one of the tremendous advantages of owning real estate over owning stocks and bonds because there is no comparable code section for stocks and bonds.

you never sell investment real estate; you trade it.

To me, the long-term tax advantages and appreciation make real estate the best investment.

When I sold the house years later, it was the best return on investment I ever experienced.

I think Fox was paying him about a million bucks a year, and he had created the Ice Age franchise for them, which was billions of dollars of value. I said, “Here’s how we’re going to negotiate with Fox. On a separate track, we’re going to create a company that you’re going to run. We’re going to get off-balance-sheet financing and we’re going to align you with another global distributor.” At the time we had at least three studios that would be great strategic fits. But he didn’t want to be an employee, he wanted real ownership. So we created parallel paths. On one track was the Fox negotiation, which I told him would take a year, and they would give him a 15 percent increase. They would grind it out and play hardball. I told him, “At the end of the day, they’re not going to pay you anywhere near what you’re worth. But on this other track, we’ll create this opportunity to change your life, for you to have something of your own.” I remember having a meeting with Mark Shmuger and David Linde, who were literally in the first day of their new jobs as co-chairmen of Universal Studios, and Bryan, Richard, Kevin, and I met with them in their first official meeting and I pitched them the idea of being in business with Chris, and they said, “Yes. We want you to do it.” It took probably well over a year, but ultimately we created Illumination. Universal came in and financed the company 100 percent. They wanted to clean up their balance sheet because they were about to sell to Comcast, so we got paid an investment banking fee for $ 4 or $ 5 million, and then on top of that we’ve commissioned every movie that Chris has done. Chris got a very, very, rich deal, probably the best producing deal there is. The truth is, on Minions he’ll probably make $ 80–$ 90 million. To date he’s probably made hundreds of millions. And he’s got Despicable Me 3, and The Grinch Who Stole Christmas.

The cost of buying and installing the latest Tesla Powerwall is more than $10,000. The cost of installing solar panels on top of that ranges from $10,000 to $30,000.4 Helen and I pay about $100 per month for electricity. It would thus take at least 200 months, or more than seventeen years, for us to recoup our investment.

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