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?

[Michael Rogers]

@Mindy Jensen  Agreed.  Good job getting to the podium at the Shareholder meeting.  Love the shareholder meetings!!!!  I've been twice, but never got selected far enough up in line to ask a question.....