Charlie Munger's Video Comments on Investing in Real Estate- 2017

[Michael Rogers]

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?