(NYSE: BRK-A) shares reached $500,000 last month, and have stayed above that level since. 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 fairly 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 has no interest in purchasing real estate, especially since it's what vice chairman of Berkshire Hathaway Charles Munger used to build his fortune.
There’s a Difference Between Buying Real Estate and Investing in Real Estate
Buffett isn’t opposed to investing in real estate and has invested in several real estate investment trusts (REITs) over the years. However, he knows it makes little sense to get into the business of being a landlord.
Buying and managing real estate is more of a business than it is an investment, and Buffett knows that his time is better spent choosing companies to invest in than it is running a real estate business.
Real estate is a tough business and one that often needs to be scaled to comprise several properties in order to build significant wealth. Many individual investors get into real estate with the misconception that it’s a passive investment, and most eventually exit those properties once realizing what they’ve actually gotten into.
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