Warren Buffett Says Real Estate Is a Lousy Investment: Why He's Wrong

Warren Buffett is probably the most successful investor of all time. He has compounded 20% annual returns for decades and amassed a fortune close to $100 billion. When he speaks, investors justifiably listen.

Buffett owes his success to a few key factors: quality, value, leverage, and management. He has put those factors to use over the past 60 years to build billions of dollars of wealth. In particular, he has used them to invest in stocks and whole businesses. Buffett has invested in bonds and derivatives here and there and his companies own a lot of real estate, but the focus has always been on stocks and businesses.

Partly because of that, Buffett hasn't spoken highly about real estate investing. I think individuals can still have a lot of success here, and I think they can do it using Buffett's methods. Let's discuss how Buffett's four investment factors can be used in real estate investing.

Source Fool.com