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URL:  https://boards.fool.com/quotbut-i-bought-at-a-significant-discount-which-17670789.aspx

Subject:  Re: OT: KISS Date:  8/11/2002  2:26 PM
Author:  joelxwil Number:  73515 of 881878

"But I bought at a significant discount which greatly limits my downside."

Now Catherine, you are sounding like somebody that bought Sun Microsystems at 15 because it was 75% off its high. It is now $4.17, and if you had bought that on margin, you would have had big problems.

You bought at a significant discount to what? There is no inherent value - just what people are willing to pay. There are, to be sure, ways to figure out just what they might be willing to pay, but that just gives an educated guess at best.

Of course, it sounds like a great deal, and it worked out. You have been able to service the payments from the rent, and the estimated price of the property has gone up. What could be better?

Nevertheless, do not ever say to yourself "there is no way I can lost money on this deal." Nothing is certain.
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