Warren Buffett: Why We Will Never Own Real Estate

Real estate investing, even via REITs, will never compare to investing in the stock market, according to Warren Buffett. In this video, he explains why Berkshire Hathaway will never invest in real estate or REITs.

[DennisFinancialDoctor]

Yeah I agree. REITs that people really like such as Realty Income (Ticker symbol O) are known to be high quality but because that is the case, you likely won't outperform the S&P buying them. If anything, you'll probably meet the performance of the S&P which isn't worth the risk that comes with individual security selection. And with heavier taxes on REIT's distributions compared to other dividend stocks, that just makes things worse which forces you to have to put them in a tax advantaged account. Same with VICI, which is a very popular REIT. VICI will probably outperform O and S&P but not to the degree that it is worth the investment.

[jeffdavis]

real estate, business and securities are 3 different animals that are available to you for specific purposes and used when needed in each you can start with a small amount of capital and use compounding. each has room for built billion dollar investing each gives you the ability to make your own return it all depends on what you want to achieve because all of us are different financially be flexible

[adrianoc]

I get stocks beat real estate doesn't mean you can help a man fulfill his dreams in real estate, building and developing.
God bless B & M 🤝🙏💚

[TVResults]

I think it comes down to passion and what one enjoys doing and believes in when investing. I'm not a real estate guy either, though I know some who have built their fortunes in commercial development. The only real estate I have interest in is having a home to enjoy. To each is own.

[JonBaldie]

Although rental properties tend to be reliable sources of income, the return on capital (money I get vs money I laid out on a deposit, renovations) is poor, and the asset can be illiquid (try selling a house in 2009/10).

Growth is also slow — you can’t always reinvest in a house and expect the tenants to increase their rent payments, and the incremental returns from buying new properties is always capped at whatever the rental yield is.

I’m sure people will have counter examples, but the key is probabilities, and this why WB/CM don’t invest in real estate. Good opportunities are rare and there are usually just as good opportunities in the stock market (i.e. there’s an opportunity cost).

[radiologer]

what was the date of this meeting>?

[surujpaulramlogan]

Buff$Bill 👁🧠👀TY TON put something together for you boys asap TY

[mcarlkv]

its the purchasing power of the dollar manipulated to go down...thomas jefferson said if we let bankers manipulate our currency our great grand children will wake up homeless on the continent their forefathers founded. another thing is the stupid property tax which you will have to pay. example grandfather buys house in 1965 for $18, 000 dollars, ends up paying mortgae for 30 years where he pays over 100, 000$ dollars. plus taxes every year on top of all that. after mortage is paid off in 1996, still has to pay between $2000-$5000 a year for property tax for that house. years down the road the 95 year old wife thats on social security barely can make ends meet every month. it gets to a point that the property tax cant be afforded anymore and the gov takes that house. if a house can be in your family for over 60-70 years and it can be taken from you because you cant pay $2300 property taxes for that year its time for a revolution. do you know what the definition of a mortgage is? mort - means death, gage -means pledge. so your mortgage actually means death pledge.

[erocoptics]

If you pay property taxes you truly never own property

[Spacemonkeymojo]

Warren has clearly never seen Australian real estate, lol.