Source: Yahoo —
Warren Buffett’s long-term investment strategy has proven to be successful through virtually all market conditions over the past several decades – recession, high inflation and deflation. If there’s one thing that’s made Buffett one of the most successful investors in history, it’s his commitment to his strategy.
A countless number of new investment techniques and algorithms have come and gone over the years, but Buffett has maintained his relatively simple strategy of picking solid companies and focusing on long-term growth while somehow ignoring the noise that sends most investors into a panic.
It may seem odd that somebody with such a disciplined long-term approach to investing hasn’t purchased real estate – besides a 40-acre farm and his personal residence – especially since vice chairman of Berkshire Hathaway Charles Munger built his fortune with real estate.
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I agree with the Buffett strategy, in the late 70’s I started buying residential properties, at on point owning 19. It was a job. I owned a business at the same time and used personal earnings to supply the real estate’s operation. What a job, what an expense, what a pain. Tenants always broke and mistreated properties, left overnight, stole whatever they could carry etc. One tenant even modified a block wall structurally to install a large window A/C. He eventually skipped town taking the A/C leaving a hole to the outside I had to repair. I’ve replaced enough carpet, roofs, paint and appliances to last a lifetime. I sold all 19 and invested wisely in the stock market with the proceeds of the real estate sales. Sure I made money but before I’d do that again I’d get a part time job at a 7-11 and save the paychecks.
Your statement about Warren not Buying real estate is a false statement. He is buying real estate everyday. Do your home work correctly. He started out buying Berkshire Hathaway and that is what started his money making career. His list of real estate ownership is huge.