A.I.M. Users Bulletin Board

[lifo]

Hello AIMster,

That's kinda my way of looking at things as well, i.e., participate without having to be involved in the actual operations.

About six weeks ago, during Canadian Thanksgiving weekend, I was talking with a relative who had purchased a home in beautiful British Columbia a long time ago (over 16 years). He later moved to Washington, DC, but he kept the home in BC as a rental property.

Numbers can be fascinating to me at times. There was mention that his property had increased in value by over $100,000. So, for a little brain exercise, without using an electronic calculator, and with just pencil and paper, I manually figured out the compound annual return on his investment, based on the number of years he owned the property.

While "over $100,000 increase" sounded very good, the actual compound annual return on invested capital wasn't really spectacular. It was about 5.35%, which is okay, but not great.

That brief exercise reinforced my belief that I am not doing too badly AIMing liquid investments.

Regards,
Jack