Warren Buffett: Why Real Estate is a Lousy Investment in 2025 (Rare New Interview)

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In 2012, Warren Buffett said he’d buy a couple hundred thousand single-family homes if he could. So… why is he recommending avoiding real estate all together in 2025? The answer might surprise you. In this video, we break down why Buffett thinks real estate is a lousy investment today—and how one simple metric reveals exactly why the deals that once excited him… just don’t make sense anymore. Let’s get into the video.

Warren Buffett built one of the greatest fortunes in history by doing one simple thing exceptionally well: buying mispriced assets. From small-town textile mills to global giants like Coca-Cola and Apple, Buffett’s strategy has always been the same—wait patiently for the market to undervalue a high-quality asset…then strike.

But here’s the question: Why do those mispricings happen more often in stocks than in real estate? It all starts with one key difference: liquidity—a fancy term which simply means how quickly and easily something can be bought or sold.

Stocks are incredibly liquid. That means they’re easy to buy and sell. You don’t need to negotiate with a seller, wait for paperwork, or talk to a lawyer. You can buy a stock on your phone in seconds, and sell it just as fast. Millions of people are doing this every day, across thousands of companies, all around the world.

But that same ease of trading creates a problem: people often act on emotion instead of logic. Because stocks are always being priced in real time, their value can swing wildly based on fear, hype, or headlines—even when the underlying business hasn’t changed at all.