Warren Buffett: Why Real Estate is a Lousy Investment



Warren Buffett and Charlie Munger talk about why real estate is a “lousy” invest for Berkshire Hathaway. Buffett and Munger lead Berkshire Hathaway, a conglomerate with ownership in BNSF rail road, Apple, American Express, Coca-Cola, GEICO, and many more. This clip is from the 2002 Berkshire Hathaway Annual Shareholders Meeting.

35 comments

  1. Hello guys 👋 so sorry for the random approach but you all seem to be an ambitious individual which gives me the idea to know if you're open minded to look a new way of generating an income, it may or may not be a fit for you but if I send you some info would you check it out 🙂

  2. So if the reason they stay away from real estate is c Corp than I say open an LLC – something you or I can do no?

  3. Goes to show you how foolish and just plain stupid is this statement by Buffett.
    Real Estate is considered "REAL" compared to the rigged, inflated corrupted insider controlled "PAPER" stocks that were used a wallpaper when the values collapsed.
    Buffet and his cohort Munger will be wiped out as the gullible intoxicated trading sailors lose it all by the hierarchy manipulators clicking away their rigmarole values.

    '

  4. Real estate is the number one way to quickly become a millionaire. I do believe in diversifying my portfolio but stocks are a long term investment. The sooner you start investing the better. You can’t leverage stocks meaning there’s no way you’ll be able to start with $0.

  5. What a crock of Sh****t
    Berkshire Hathaway BOUGHT everything on sale outside of Philadelphia since 2008 melt down using
    Long and Foster
    Boutique firm as their """Beard""""
    In the early stages and then their own subsidy on the signs.
    They flipped more single family house's here than any other company…
    This is a charade

  6. Stock investments might seem so complicated because of it’s nature but I find them more lucrative to real estate

  7. Wow i enjoyed this video tho,Forex trading has been difficult for me to understand but my life have

    better since Mrs Carlos Shirley came into my life,she helped me grow my profit and taught me how to trade on my own.

  8. Interesting…So why do they own all those strawberry fields in Hillsborough County, Florida….They're not growers!!!

  9. In Canada, Real Estate is already overpriced, and I believe it's getting there in the U.S.A. In my case, I have the advantage of putting anything except real estate into a TFSA…which is any liquid asset such as stocks, options, or bonds in a tax shelter. I can't put real-estate into a TFSA. If I put overly-expensive, money producing property into a corporate account, I will pay a 13% tax. Sure, stocks have problems on their own, but I could easily sell them without any hassle.

  10. “You have to have the financing shut off to a big degree to get any mispricing in real estate” that’s exactly what happened in the financial crisis

  11. I was a newbie in stocks when I achieved my first couple millions. I invested with a licensed broker from a reputable firm who doubled my money. I met her at a trade seminar in NY & she agreed to trade for me.

  12. My dad bought 6-7 homes in bay area California around 2010 during the real estate bubble. Probably the best investment decision of his life. He will never have to worry about money again. Rent comes in and the value of the homes themselves have risen many fold.

  13. Real estate may be a lousy investment for someone who's got tens of billions of dollars, but even amongst the top 1 percent of the richest people in the world (and that's still 76 million people) it's still very very much worth it. Sure, the super duper rich have way better things to invest on, but even the "normal" rich people invest in real estate.

  14. Notice he is talking a lot about the RTC. The reason for that is RTC (Resolution Trust Corporation) was an a U.S. government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets. The government used this entity to sell tons of houses dirt cheap back in the 80's when the Savings and loans were caught " with their pants down" like Leeman brothers and the Fiasco of 2008 with too many unsecure/delinquent Mortgages. They are preparing to do the same with a different quasi government agency when the bubble in real state burst, and that is why he saying what is saying. He does not want competition so they can make a killing buying a bunch of houses and apartments that will be in foreclosure a very low prices then selling back for higher prices to the same people they stole from. This is greed to the highest and corruption in USA.

  15. Innovative Real estate is a good investment. People have just not thought of new paradigms yet. There has been very little innovation in this sector.

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