Profitable Business Nowadays
profitable business nowadays
Through out … has real estate been the most profitable business?
a) History
b) Industrial Revolution
c) After Industrial Revolution
d) Before 1990
e) Nowadays
So basically you have to state for each one whether real estate was the most profitable business during that time. If it is not you have to say which was. Thanks! (I think its real estate for all of them except teh last one… through my research I see that land was always the basis of society through history, then during the industrial revolution there were many real estate moguls, and before 1990 we had the Japanese real estate guy, Mori as the richest man in the world.)
You don’t define real estate which makes this a hard question to answer. I am assuming that by ‘real estate’ you mean ‘land’ as mostly people did not own the house they lived in. Owner occupation of houses is a post second ww concept, as are home owner mortgages.
Until recent times (about 150 years) land was really the only way to hold wealth. It was possible to create wealth through trade but then the wealth had to be held securely. So land was it. Land was owned and either farmed or rented out to provide income. As the supply of land is finite, when wealth grew, so did land values. But without an inheritance tax, there was no need to sell so land sales were scarce. But the yield depended on rents and you could only buy for cash so that limited its upside.
This was the main driving force behind the migration from Europe to North America.
Land has never been the ‘most profitable business’ at any time in history. Of course there are individual transactions that have been amazingly profitable – in the UK in the 1970s there were farmers who made millions overnight selling a single field – but land has always been a conservative rather than a speculative investment.
Profits go along with risk. So setting up a successful business, investing in one or finding an amazing opportunity have always been a great way to get rich. Bribery and corruption, politics and being the mistress of the right man work too. But people who take risks can lose everything including their own lives or freedom, that happens.
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