AMA - Warren Buffet Prefers The Stock Market

The Real Estate Espresso Podcast

AMA – Warren Buffet Prefers The Stock Market

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AMA – Warren Buffet Prefers The Stock Market

Welcome to the Real Estate Espresso podcast, your morning shot of what’s new in the world of real estate investing. I’m your host Victor Menasce. Today is another AMA episode, that is ask me anything. I love to answer your questions and if you have a question you think is going to be of broad interest, send it in. I’ll answer it live on the air. Send your questions to [email protected].

Today’s question comes from Ramon who writes, wondering your perspective on Warren Buffett’s recent assessment of real estate investing versus stock market investing. It seems to me that he completely ignores the ability to add value and forced equity in real estate, which takes work but can generate massive returns. That’s not possible to do in the stock market unless you take very large positions that are beyond the reach of average investors or really anyone but the largest investment and hedge funds.

Well Ramon, thank you for your question. When Warren Buffett speaks, it’s natural to pay attention. For clarity, I’m going to read Warren Buffett’s response where he says, in respect to real estate, “it’s so much harder than stocks in terms of negotiation, deals, time span, and involvement of multiple parties…”

So, that’s what the greatest investor of our generation had to say about the difference between real estate and the stock market. Business is all about value creation. And you can do that in many different ways. It can be an active business. It can be real estate. It can be a tech company. It could even be a bank. Many different ways to generate value. The key, in my opinion, is to stay away from the general and focus on the specific. I want to thank you, Ramon for a great question.

And for the listeners at home, have an awesome rest of your day. Go make some great things happen, and we’ll talk again tomorrow.

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