Warren Buffett’s Latest Investment Tip

Warren Buffett is often asked why his holding company, Berkshire Hathaway, doesn’t invest in real estate.

His response: Why buy real estate when the stock market is so easy?

The multi-billionaire, who many regard as the greatest investor of the 20th century, has given investors plenty of timely guidance over the past 50 years.

Today, he’s changing his tune about real estate.

He may or may not be buying it for Berkshire Hathaway, but recently, on CNBC, he suggested that it’s currently a tantalizing investment opportunity— for the handy.

Exactly how good has Buffett’s advice been, in the past, when making recommendations to the public?

You be the Judge.

Read My Full Article at AssetBuilder.com

 





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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13 Responses

  1. Vegas, baby…….. lots of cheap real estate there. Million dollar houses are selling at 70% discounts.

  2. No kidding?! That's amazing! Any interest in buying a cheap home yourself Biz?

  3. Robber Baron says:

    Last visit to to hometown (San Diego Calif) I went house-shopping but found nothing really so cheap. Going back this July, will look again. But as absentee landlord gotta figure some kind of management fee (even if family does it) and maintenance and occasional vacancy . . . Owning more than one residential property can have nasty tax implications for those of us currently exempt from income taxes back home. Investigate!

    Even with low interest rates (perhaps partial mortgage because there are other things I can do with cash, or forget about mortgage and call it lost opportunities cost) — there just aren't that many cheap properties out there. Rents have declined, not climbed, as over-extended mortgagees try to deal with upside down homes by renting out their houses and living in smaller apartments.

  4. Chris the Truck Driv says:

    Hi Everybody and Andrew! Sacramento has great one of the highest distressed real estate markets in the Country! But with what Gov.Jerry Brown has in mind for this State I'm not really sure I want to buy a Brick and Mortar Investment, for example the City of Sacramento is installing water meters on everybody's house….another added expense! So In the mean while I'm gonna keep investing in REITS! Go VNQ!

  5. Buffett likes any investment that produces actual cash flows. Companies, real estate, farms, etc.

    Although the areas of specialization certainly differ, it's all related. The same fundamental principles apply, with different details.

    I'm not very handy, so I stick to stocks.

  6. Chris the Truck Driv says:

    Hi Andrew, Thanks for you reply! A week or so ago I couldn't get through this system, I thought I had a Bug or something on my Computer! Scared the Heck out of me! Anyways, Sacramento is a Fine community, You can get a Nice Charming 3 bedroom, 1200-1500 sq feet or so for 130,000 or so! Take Care and Thanks once again for your Reply! Sincerely Chris the Alaskan ETF Fund Advisor! HA ha ha

    • That is cheap Chris! I would be very interested in finding a triplex or a quad in the U.S. I'm not really interested in single family homes, but places with more than one revenue source would really be (I think) more efficient and profitable.

  7. Chris the Truck Driv says:

    Hi Andrew, I have a friend of mine who is selling his Duplex, He is a Truck Driver at my Company! I'm really not sure exactly why he is Selling it, but I think he has had a few bad Tenants and now he is just Overwhelmed! I think with the right Property Management company he would be OK, but I can't be sure for certain….However I will do some further research on this Property and find out some Hard Facts! The property is located here in Sacramento. Take Care, Chris the Truck Driver

  8. Janice Goh says:

    Hi Andrew,

    How could a Singaporean buy houses in the US and get it managed? Also, when we sell, how do we ensure we get hold of our capital gains?

    Thanks!

  9. Barry says:

    Are there any REIT's that could give you the exposure and yield to the US market, I read somehwere that S ZELL (The Gravedancer) also had a fund

  10. Barry says:

    Whats buffett saying for 2016 :o)

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