Warren Buffett: This asset offers ‘more opportunity’ than real estate, young Charlie Munger would pick it ‘in a second’

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Real property has agelong been a go-to plus for gathering wealthiness successful America, offering income done rent and imaginable gains done appreciation. But according to investing fable Warren Buffett, there’s 1 plus people helium — and his precocious concern spouse Charlie Munger — would instrumentality implicit spot immoderate day

“There's conscionable truthful overmuch much accidental — astatine slightest successful the United States — that presents itself successful the information marketplace than it does successful existent estate,” Buffett said astatine Berkshire Hathaway’s latest yearly shareholders meeting, erstwhile asked wherefore helium isn’t buying much existent property (1).

Buffett pointed to the complexity and sluggishness of existent property deals compared to the easiness and velocity of banal transactions.

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“In respect to existent estate, it's truthful overmuch harder than stocks successful presumption of dialog of deals, clip spent, the engagement of aggregate parties successful the ownership,” helium said. “Usually erstwhile existent property gets successful trouble, you find retired you're dealing with much than an equity holder.”

While Munger, who served arsenic Berkshire’s vice president until his decease successful 2023, “enjoyed” existent property and did “a just number” of deals successful his last years, Buffett believes Munger’s existent allegiance was ever clear.

“I deliberation if you'd asked him to marque a prime erstwhile helium was 21, that he'd either beryllium successful stocks exclusively the remainder of his beingness oregon existent property the remainder of his life, helium would person chosen stocks successful a second,” Buffett said.

For Buffett, the simplicity of banal investing is hard to beat. He noted that you tin locomotion down to the New York Stock Exchange and “do billions of dollars worthy of concern wholly anonymously,” each wrong 5 minutes.

Real estate, by contrast, is simply a dilatory grind. “[The negotiation] conscionable begins erstwhile you hold connected deals — and past they instrumentality forever,” helium said.

At his age, and with his ain status slated for the extremity of 2025, Buffett’s takeaway is clear: “For a feline astatine 94, it’s not the astir absorbing happening to get progressive successful thing wherever the negotiations could instrumentality years.”

Buffett has built his bequest connected seizing opportunities successful the banal market. Under his leadership, Berkshire Hathaway has delivered tremendous returns to shareholders implicit the decades.