Pavite explains the reason for his preference to invest in stocks instead of real estate

• Berkshire Hathaway, CEO Warren Buffett He was asked at the company’s annual shareholders meeting on Saturday about investing in real estate, which it largely avoided. He preferred to buy and sell stocks for Berkshire’s portfolio, saying that real estate deals can become difficult and misleading in negotiations.

Investment legend Warren Buffett, who is planning to step down later this year as CEO of Berkshire Hathaway, is well known for his magic in stocks, but not real estate.

During the meeting of the annual shareholders of the bloc on Saturday, it was asked why a real estate was not purchased at the present time, amid high rates and economic uncertainty.

“Well, regarding real estate, it’s much more difficult than shares in terms of negotiating the deals and time spent and the participation of multiple parties in the monarchy,” Buffett replied. “Usually when real estate faces a problem, you discover that you are dealing with more than just the arrow holder.”

The famous investor acknowledged that there were times when real estate had a deal, but the stocks were cheaper and could be purchased more easily.

He added that the late Charlie Monger, who was the Vice Chairman of Berkshire until his death in 2023, participated in more real estate deals and a large number of them in the past five years of his life.

“But he was playing an interesting game for him,” Pavit said.

However, he believes that if Munger has a choice between investing only in stocks or only in real estate, then the former right man would have chosen stocks.

“There is a much greater chance, at least in the United States, which displays itself in the security market more than real estate,” Buffett added.

He explained that other wrinkles in real estate is that the owner or family often has a large property for a long time, so making a deal is a tremendous decision for them.

On the contrary, stock deals with billions of dollars can be made in minutes, completely unknown, which are final.

Berkshire concluded some real estate deals in 2008 and 2009, when the mortgage statue stopped real estate and financial markets, but the amount of time they took to close it was unable to compete with stock deals.

He pointed out that “the completion rate to work on anything in the stocks, assuming that you got a meeting of minds on the price, is basically 100 %.” “In real estate, negotiation begins only when they agree on deals, then take forever. For a 94 -year -old child, it is not the most interesting to participate in something that negotiations might take years.”

Buffett’s comments come at a time when the stock market was subjected to tremendous fluctuations amid a trade war of President Donald Trump.

The shares were shattered in April after it unveiled the “Tahrir Day” tariff, but it recovered and regained those losses by Friday, as Trump granted delay and exceptions, with reference to progress in commercial deals.

In March, the chief economist of the National Association of Real Estate Blazers Lawrence Yun indicated that real estate wealth was at all levels ever while the shares were fluctuating.

“Perhaps people will start focusing on saying, where is stability?” he CNBC said. “Some people are heading towards gold, but other people may turn to the powerful basis of the property as the rate of failure to pay the mortgage is still near the historically low levels.”

This story was originally shown on Fortune.com