955: BiggerNews: Real Estate vs. Stocks, the Ultimate Wealth-Building Debate w/The Motley Fool!

5 snips

May 17, 2024

Guest

Jason Moser

Guest

Matt Argersinger

Financial experts from The Motley Fool debate whether real estate or stocks make you richer. They discuss wealth-building, barriers to entry, volatility, diversification, REITs vs. rentals, leverage, liquidity, time commitments, and tax advantages. The debate covers historical data on stock returns, owning real businesses through stocks, leveraging opportunities, investment strategies, risk factors, cash flow, stress factors, and portfolio allocation.

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Introduction

00:00 • 2min

Stocks vs. Real Estate: A Wealth-Building Debate

02:15 • 11min

Comparing Real Estate and Stocks for Investment Returns

12:54 • 2min

Navigating Volatility and Risk in Stocks and Real Estate Investing

15:07 • 6min

Comparing Stocks and Real Estate Investments

20:58 • 4min

Real Estate vs. Stock Market Investments

25:19 • 7min

Comparing Startup Costs, Time Investment, and Returns in Real Estate vs. Stocks

32:16 • 2min

Real Estate vs. Stocks: A Comprehensive Comparison

33:49 • 14min

Balancing Portfolio Allocation Across Real Estate, Stocks, and Private Business

48:02 • 3min

Which will make you richer: real estate vs. stocks? We brought the fine folks from The Motley Fool on the podcast to get into a serious debate over which asset makes you more money, which is easier to invest in, and which saves you the most in taxes. We’ll go head-to-head against The Motley Fool’s Jason Moser and Matt Argersinger to finally answer the age-old question: Should you invest in stocks, real estate, or both?

For this debate, we had to bring out the big guns. That’s why Dave Meyer and BiggerPockets CEO Scott Trench will be on team real estate for this debate, as Chris Hutchins from All the Hacks moderates to ensure things stay fair. Although we’d love to admit that we crushed this debate, there are some moments when the stock investors will surprise you, showing that real estate may not be for everyone and how stocks beat real estate in numerous ways. But that doesn’t answer the question, “Does real estate make you richer?” Don’t worry; we’ll get into all that in this debate.

Stick around as we get into the topics you care about most: building wealth, barriers to entry, volatility and risk, diversification, REITs vs. rentals, leverage and liquidity, time commitments, tax advantages, and more. If you’re itching to park your cash in an investment, hear out the debate BEFORE you make a move!

Support today’s show sponsor, Rent App: the free and easy way to collect rent!

In This Episode We Cover

The ultimate real estate vs. stocks debate (and which will make you richer)

Barriers to entry and which asset class is the EASIEST for beginners

Volatility and risk, and the sizable advantage real estate has for stable pricing

REITs (real estate investment trusts) vs. rentals and the more “passive” type of real estate investing

How much time it actually takes to succeed at stock investing and landlording

The MASSIVE tax advantages to real estate investing that stocks cannot beat

Why BiggerPockets CEO Scott Trench invests more in stocks than in real estate (!?)

And So Much More!

(00:00) Intro

(02:20) Stocks vs. Real Estate Investing

(04:08) Building Wealth

(08:43) Barriers to Entry

(14:50 )Volatility and Risk

(20:41) Diversification

(23:42) REITs (Real Estate Investment Trusts) vs. Rentals

(32:57) Time Commitments

(35:53) Leverage and Liquidity

(41:12) Tax Advantages

(43:54) Closing Arguments

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-955

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