If you had 2m, would you buy a MCD frnachise or use the money to trade? Now if you bought a McDonalds for 2m but it was worth say 2.3, you got a discount. You'd be gauranteed a nice return on investment plus have a little bit of equity cushion if resales were stagnant. Suppose you paid 2m and you were a half hearted manager and business dropped off, several years go by and you might be able to sell the place for 1.8m. You still drew a salary, but lost money on the original investment. Owning a MCD would be plenty of headaches, plus you smell like fries all the time. Now if you took the 2m and traded, got guts?