Charlie Munger's Video Comments on Investing in Real Estate- 2017
Check out this February 2017 Youtube video interview with Charlie Munger (Berkshire Hathaway Vice Chairman).
Youtube Link: Charlie Munger discusses Real Estate Investing
Charlie talks about real estate being a difficult investment. When I first watched this I was a little taken aback, but I think his basic point is right. Real estate is local and if you are trying to invest at a macro level with large sums of money (which he would be doing) it's very difficult to get a durable competitive advantage over a local player that know his/her local market and is mining local deals from motivated sellers.
My takeaway is that you need to have a niche and become the master of it to make money in that niche of real estate.
Charlie's funniest quote from this video: "The Patels from India that buy all these motels. They know more about motels than you do. They live in the God-**** motels. Every dime they get they fix up and buy another hotel. You want to compete with the Patels; not I."
@Mindy Jensen - You are a Berkshire follower. Your thoughts?