FBR 2.94% 3.5¢ fbr ltd

Some people's thought process on here is a little disturbing,...

  1. 48 Posts.
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    Some people's thought process on here is a little disturbing, either your research is lacking or your logic, and sometimes both.

    The reason I originally invested in Fastbrick was because of the need for affordable housing.

    First reason, bricks are better than sticks, its just a fact. I live in the US and if FBR made it here it would be awesome.

    Second reason revolves around real estate markets. Hopefully everyone can follow this one, but first I have to define a few things. An asset is something that makes you money and a liability is something that costs you money.

    Let start with a piece of land, land has value depending on quality and location. Yes, land can become more desirable over time adding value and be thought of as an asset. Personal homes are not an asset, you build them, you fill them full of junk, over time you wear out the inside and outside, then spruce it up a bit and sell it to a younger generation for more then what you built or bought it for. Along the way it costed you a ton of money. On top of that you have these leeches called real estate agent that take a commission of 5-7% each time a house is sold. Only further adding to the seller's desire to ask more money at the point of sale. Then what do young people do, they go to the banks and ask for it. Banks are happy to lend the money as they make interest on it and in the worst case they repo the house and sell it again. The lie is perpetual and continues ever inflating the balloon we call the real estate market. Giving hope to innocent people that they will eventually get their money back out. It is a giant ponzi scheme and many government have economic metrics built around this. A healthy metric for an economy would be the percentage of people that own their home free and clear, the higher the better. Its scares me that some people call a house their biggest asset, I would call a house my biggest liability it is the thing that cost me the most amount of money, upkeep, taxes, utilities, etc. Hopefully people get the point here, houses are generally NOT an asset they are a liabilities.

    The real reason I like FBR, first lets talk about price related to supply and demand of a product or service. As a company becomes more efficient at manufacturing a product they produce more of that product at a cheaper price point. Now assume that this product was the same and you really only ever had to buy one and it would last your whole life. The first people to buy this product would have paid more for it because manufacturer wasn't efficient. There was inherently more LABOR involve hence the higher original price. As the company began to automate with ROBOTICS and the price fell because of efficiency improvements. In addition related process were improved because the accuracy the robots could obtain, such as automatic packing. This generated more supply and along came more customers. Not only did the assembly of the product improve but also the volumes of material being consumed (BKW, Glen-Gery, Weinerberger).

    Now take a step back, what if the people that bought some the original product were told that the value of this product was always going to increase? Not only did the previous customers pay a higher price in labor and but also a higher cost of material.

    The reason I believe in FBR is that the effects that have taken place with so many other products will eventually take hold in construction. It is my hopes that it just doesn't get manipulate by large construction companies/corporation for profit only, but instead by governments interested in providing their citizens with reasonable access to affordable housing through controlled financing. All while making FBR a very wealthy company in a capitalistic manner, right Anks.
 
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