Warren Buffett Why Real Estate is a lousy investment unless there's a crisis #shorts
Channel: Understanding Stocks
Date: 2023-05-26

Warren Buffett has said that he does not invest in real estate because it is a "lousy" investment. He believes that real estate is too illiquid and that it is difficult to predict the future value of real estate. He also believes that real estate is acyclical, meaning that it does not follow the same economic cycles as stocks and bonds.

Buffett has also said that he believes that real estate is usually mispriced. He believes that people tend to overvalue real estate during good times and to undervalue it during bad times. He believes that this mispricing creates opportunities for investors to buy real estate at a bargain price during a crisis.

In a 2014 interview with CNBC, Buffett said:

"I don't like real estate as an investment. I think it's lousy. It's illiquid. It's hard to value. It's cyclical. And it's not something I've ever done."

Buffett has also said that he believes that real estate is a good investment only during a crisis. In a 2009 interview with Fortune magazine, he said:

"I think real estate is a good investment only when there's a crisis. That's when you can buy it at a bargain price."

Buffett's views on real estate are not shared by everyone. Some investors believe that real estate can be a good investment, even during good times. They believe that real estate can provide diversification and income, and that it can appreciate in value over time.

However, Buffett's views are based on his experience and his understanding of the markets. He has been investing for over 70 years, and he has seen the real estate market go through both good times and bad times. He believes that real estate is a risky investment, and he prefers to invest in other assets, such as stocks and bonds.
Video for educational and entertainment purposes only. I know nothing and dont know the future. you can and will lose money. speak to a financial advisor before investing in anything. investing is risky and can and will lose you money. I am not a financial advisor.

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