Buffett explains why he prefers to invest in actions instead of real estate

• Berkshire Hathaway CEO WARREN BUFETT The company’s shareholders’ annual meeting on Saturday on investment in real estate was asked, which has largely avoided. He has preferred to buy and sell stocks for the Berkshire portfolio, saying that real estate deals can be complicated and affected in the negotiations.

Legend by investing Warren Warfett, who plans to resign earlier this year as CEO of Berkshire Hathaway, is well known for his assistance in actions, but not real estate.

During the annual meeting of Saturday’s shareholders, he was asked why he did not buy properties right now, in the midst of high rates and economic uncertainty.

“Well, in terms of real estate, it is much more difficult than actions in terms of negotiation of treatment, time spent and the participation of various parties in the property,” Buffett responded. “Usually, when real estate has problems, you discover that this is more than the equity holder.”

Valor -oriented investor acknowledged that there have been times when real estate was a bargain, but the shares were cheaper and could be bought more easily.

He added that the missing Charlie Munger, who was the Vice President of Berkshire until his death in 2023, was also dedicated to real estate agreements and made a significant number in the last five years of his life.

“But he was playing a game that was interesting to him,” said Buffett.

However, he believes that if Munger had an option between investing only in actions or only in real estate, his old man on the right would have chosen actions.

“There is so much more opportunity, at least in the United States, which is presented to the security market than to real estate property,” added Buffett.

Another wrinkle of real estate is that a single owner or family often has a large property that they have had for a long time, so making an agreement is a huge decision for them, he explained.

On the contrary, the offers of actions with billions of dollars can be done in a few minutes, totally anonymous, and are final, said Buffett.

Berkshire made some real estate offers in 2008 and 2009, when the mortgage bust sank real estate and financial markets, but the amount of time it took to close could not compete with the values ​​shops.

“The end rate to work on anything in shares, assuming that you have a meeting of minds about the price, is essentially 100%,” he said. “In real estate property, negotiation begins when you agree on offers, and then take it forever. For a 94-year-old, it is not the most interesting to get involved in something where negotiations could last for years.”

Buffett’s comments occur when the securities market has experienced enormous volatility in the midst of the Merity War again by President Donald Trump.

Stocks crashed in April after it unveiled its “liberation day”, but bouncing and recovered these losses on Friday, as Trump granted delays and exceptions, while also progressing in commercial agreements.

In March, the chief economist of the National Reaction Association, Lawrence Yun, said that real estate wealth was at all times as the actions moved.

“Maybe people will start focusing on saying, where is stability?” he said to CNBC. “Some people go to gold, but maybe other people will go to the solid base of real estate where the mortgage delinquency rate is still almost historically low.”

This story originally presented to Fortune.com