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| Name | Warren Buffett's Strategy Used For Real Estate - Stock vs Real Estate Investing |
| Video Uploader | Video From Andrew Moore |
| Upload Date | This Video Uploaded At 18-03-2019 10:35:31 |
| Video Discription | Why I invest it real estate instead of stocks and i've done both. In helping decide which one is better suited to you (or both) Im going to draw from an individual much smarter than me. Legendary stock investor warren Buffett If you don’t know who warren Buffett is he has been at the top of the worlds richest list many times and has remained near the top for a very long time. There for he’s better qualified to answer this question than me. Now Warren talks about staying within your Circle of competence. What he means by this is if you're going to invest your money in something, you need to understand everything about it but also what outside elements may effect that. In order to work out what a business is worth you start with the business current earnings and how much money that business will make you over the time you own it. Then you discount it at the appropriate rate because ten dollars today is worth more to you than ten dollars in a years time due to inflation and not being able to make a return on that money. Now you have an idea of what the business is worth. But then you need to understand how competitors starting a similar business could effect the earnings. If the cost of make the product you sell with increase due to outside influences. If you know all that great. I’m not that smart... Warren Buffett says you don’t need more than 130 iq to do his job but when 68% of the population has an iq between 85 and 115 you’d need to be pretty smart to do his job So I stick to Warrens advise and stay within my circle of competence which for me is real estate. Real estate I find much simpler to understand. Just like the Stock market, the real estate market can drop but you don’t have a price attached to your property every day, showing you how much money you’ve lost. You only lose money if you sell when the price is down but its much harder not to become emotional and sell when you can physically see what your stocks are now worth. Its almost like when your friend is in a bad relationship, you say to yourself I can’t believe they put up with that because you’re not emotional about the relationship but they are and therefore don’t think clearly. When the real estate market drops you still know the price has come back but its not rubbed in your face like it is with stocks. A house isn’t likely to have the income it produces dramatically change like a business can. As long as there is people who need the shelter the rents will stay steady and provided there isn’t a large amount of vacant land where you buy there isn’t likely to be a huge influx of competing properties appear, like a competing business can. I’m not saying real estate is better than stocks i'm just saying I understand it better and therefore for me it is the better option. [g3zrdyBGNPQ] |
| Category | People & Blogs |
| Tags | warren buffett's best advice on successful investing | how to invest money in real estate | warren buffett advice on investing | warren buffett's strategy for real estate | warren buffett investment strategy | warren buffett real estate advice | warren buffett stocks vs real estate | warren buffett 2019 stocks | warren buffett 2019 investments | stocks vs real estate | stocks vs real estate investing |
