Last evening while waiting to go to sleep I broke a rule I generally have about watching Jim Cramer’s Mad Money program. My rule is usually: Don’t. It’s not that I don’t think he knows what he’s doing. Heck, he knows 1,000% more than I do about the “market”.
It’s just that I usually don’t watch Cramer because of his style. It reminds me of Beavis when he had too much caffeine and he turned into Cornholio. Only that was supposed to be funny.
Anyhoo, as I flipped through he caught my attention with a rant about the differences between professional investors and the amateurs. There were several points all of which I found interesting. And upon further reflection it occurs to me that one point is very much a part of my mantra as well;
The professional investor is first concerned with how much money he could lose. Not how much money he could gain.
That’s one of the reasons I love real estate investing right here in boring but very stable Kansas City. And why within the Kansas City metropolitan area I’m even choosier still as to what neighborhoods I will recommend investors to grow their portfolios.
As stated before, I’m not a big fan of the lower priced neighborhoods. Growth is slow. And neighborhoods can turn for the worse rather quickly. And I’ve also stated that I’m not sold on the condo boom in downtown KC because I think there is too much inventory at too high of a price. That’s more speculative than I like.
So I guess I have a little Cramerica in me after all.
BBQ Capital | Kansas City Real Estate Investing 