Video wird geladen...

Video konnte nicht geladen werden

Zur Startseite

VALUE: After Hours (S06 E10): Christopher Bloomstran on Buffett, $BRK Berkshire, Munger, $SPY & China You can watch the entire discussion here:

28,695 Aufrufe • vor 2 Jahren •via X (Twitter)

1 Kommentare

Profilbild von Randy Coard
Randy Coardvor 2 Jahren

There are probably only two employees at Berkshire who know more about the company than Chris B.

Ähnliche Videos

Warren Buffett and Charlie Munger didn't avoid real estate because they thought it was a bad asset class They stayed away because they believed they had no durable advantage in it. When asked why real estate had never become a significant part of Berkshire Hathaway's portfolio, Buffett pointed to two reasons: an unfavorable tax structure and the absence of a competitive edge. He explained that Berkshire, as a C corporation, faces an extra layer of corporate taxation on real estate income, putting it at a disadvantage against REITs, partnerships, and S corporations. As Buffett put it: "Real estate tends to be a very lousy investment for people who are taxed under subchapter C." Beyond taxes, Buffett argued that developed real estate is usually priced efficiently. Unlike public stocks, where Berkshire believes it can identify mispriced businesses, most commercial real estate transactions involve buyers and sellers who have access to similar information. According to Buffett, the best opportunities arise only when markets become highly inefficient — such as during the Resolution Trust Corporation (RTC) era in the early 1990s, when distressed assets, forced sellers, and scarce financing created widespread mispricing. Looking back, Buffett admitted Berkshire wasn't fully prepared to capitalize on those conditions and believed they missed an opportunity to earn substantial returns. He also recalled that one of the few major real estate deals Berkshire seriously pursued was the Irvine Company in the late 1970s, though the acquisition ultimately went to a group organized by Mobil Oil. Reflecting on his partnership with Charlie Munger, Buffett joked that Munger would often spend several minutes arguing against a deal—and the more passionate the objections, the more Buffett suspected Charlie actually liked it. Source: Berkshire Hathaway Annual Meeting (2003) Q&A

Black Edge

20,087 Aufrufe • vor 21 Tagen