Raw Land Is the Worst Inflation Hedge

“ADVICE #2: 1 have foundfrom sad experience that purchasing large tracts of raw land is not the perfect inflation hedge. It isn't even a good investment, for two simple reasons. First, the payment of real estate taxes and the loss of cash flow income on the investment amount to more per annum than the land will increase in value. Second, and even more important, there is a greater spread between the bid and asked prices on land than on any other commodity. When you insist on buying landfrom someone who really doesn't want to sell, you are probably paying a price that the land may be worth on a forced sale ten or twentyyears hence. Unlessyou can afford to be very, very patientfor the next twenty years, stay away from undeveloped land purchases.”

“ADVICE: Don't invest in a project in which you are personally influenced by association without sitting down andfiguring out how much you are going to have to gross to make a fair return on your money.”