Post #7779 by Munger_Disciple on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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As others have pointed out, homeownership comes with it a lot of associated expenses (property taxes, upkeep & maintenance costs, insurance, on and on). Yes we derive psychic income from it from many happy memories. But from an investment point of view it is a negative cashflow yielding asset so from a DCF calculation, it is worth a negative present value.

On the other hand it has utility value to others, so it is worth something just like a Monet painting. I think one's investable assets (thus excluding home equity) matters more at least in the long run. If I were producing one of these reports, I would look at both: overall net worth including home equity & net worth without.

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