Stocks...a poor investment?
When comparing buying stocks to investing in a real company that your friend owns for instant, the gains on stocks seems awful.
Friend buys a pizzeria or laundromat or car wash, invests $200k into the business, hires a small team to run the place without him even beingt there, and then earns $400k a year. He is making 200% a year return on profit. Comparing that to the 8% a year or so in stocks makes stocks look awful.
However, the risk of running a small business like that is much higher. But if there is a 50% failure rate, your expected value is still 100%, still 12.5x that of an investment in stock.
You have to do more work setting up the business, but if it is a friends business, or a bunch of other people are running it, it does not take much work.
What else am I msising, I know it is something.