There’s a lot of wisdom to be gained from the study of history.
Henry Clews was a famous Wall Street operator in the late 1800’s and had a valuable observation on the long term advantages of real estate.
The following excerpt is taken from Henry’s excellent book “Fifty Years in Wall Street”, first published in 1888! The stories are dated (such as dealing in civil war bonds) but the wisdom is timeless. Henry Clews had seen a lot by this stage in his life and he shares a profound investing truth, tucked away almost hidden in one of the chapters, this truth is just as relevant 100+ years after he wrote it and will be still valid 100 years from now.
Henry Clews and his great truth about investing and markets..
Henry Clews wrote in Twenty-Eight Years in Wall Street (1888):
But few gain sufficient experience in Wall Street to command success until they reach that period of life in which they have one foot in the grave. When this time comes, these old veterans of the Street usually spend long intervals of repose at their comfortable homes, and in times of panic, which recur sometimes oftener than once a year, these old fellows will be seen in Wall Street, hobbling down on their canes to their brokers offices.Then they always buy good stocks to the extent of their bank balances, which they have been permitted to accumulate for just such an emergency. The panic usually rages until enough of these cash purchases of stock is made to afford a big rake in. When the panic has spent its force, these old fellows, who have been resting judiciously on their oars in expectation of the inevitable event, which usually returns with the regularity of the seasons, quickly realize, deposit their profits with their bankers, or the overplus thereof, after purchasing more real estate that is on the up grade, for permanent investment, and retire for another season to the quietude of their splendid homes and the bosoms of their happy families.
A key advantage of real estate is that it’s a wonderful asset class for the long term. Investments and stock market booms and busts come and go but quality real estate lasts forever.
Henry Clews had all of this figured out almost 150 years ago with his wonderful ‘Walking Cane Theory of Investing’. Park your money in high quality real estate and retire to your rocking chair and family and enjoy your life.
