Coiled Spring, page-114

For a minute Tyler throw the comparison across to your area of specialty in Real Estate

Lets say for this example a young couple save their money a get $100,000 deposit down for a house

Purchase price is lets say $1m so they have a 10% deposit - lets forget about extra costs to keep this simple

So they have bought an illiquid asset for $1m - Now a 10% drop in value to $900k would mean that the young couple has lost all of their deposit

The fact that shares can be bought and sold in minutes, hours, days, months or years creates variables that make it for some a mentally harder process to manage when prices are given daily

Imagine if housing prices were quoted hourly or daily