Warren Buffett on the difference between investing in real estate and the stock market
Intelligent Investing
Synopsis
Both purchases were small, and he says so himself. He tells the stories anyway, because between them they contain everything he knows about investing, and neither involves a share certificate, a screen, or a single price quotation. What makes them work is the same thing that stops most people from making money in the market, and it has nothing to do with skill.
A man buys a flat. Nobody rings him the next morning to say it is worth two percent less than yesterday. Nobody rings the week after either. So he lives in it, collects the rent, and 10 years later he has done rather well. The same man buys shares in a perfectly good company. Within six months he has sold them at a loss.Same person. Same patience available to him. Two completely different endings.Warren Buffett thinks he knows precisely what
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