 Good day, fellow investors. Today I want to talk about Warren Buffett's real estate investments. It is very important to understand why he also invested in real estate and how he approached those investments. It's essential because if we do the same in life, we're going to have great investment returns. Warren Buffett bought two real estate properties in his life, a farm in Nebraska and apartment building for students next to the New York University. Let's first start with the farmland in Nebraska. So in 1986 Warren Buffett purchased 400 acres of farmland located 50 miles north of Omaha and it cost him $280,000. A bubble had burst, he bought it for cheap, he bought it on a foreclosure, so he really bought when there was a terrible situation in the environment. However, he thought okay people are going to eat, that farmland is very valuable, I get a 10% return if I buy it now and then it's farmland. So it's really appreciate it will protect you from inflation and so on and so on. 30 years later, 28, because he wrote about it in his 2013 investment letter. Now we are four years later, so probably the investment is even more worth. He said it's five times the value what he paid. The earnings are three times what he paid, so on his investment he is now making 30%, not 10%, and he said he visited the property twice, he doesn't know anything about farming. The most important thing I take out of this, he bought it when it was cheap and it was something that has a moat. Nebraska farmland has a moat, nobody, you cannot compete, you cannot increase the farmland so much because and people, more people, more people, more people are going to eat, so very very interesting how he gave a margin of safety, so he couldn't lose, he knew he would get 10% a year on average, some good years, some bad years, and he didn't care later what was the price and he doesn't even care now what was the price, what is the price, current price of the acreage in Omaha, he knows in Nebraska, sorry, he knows that he's getting 30% on his investment per year, which is excellent returns and you don't have any, you don't even have to bother on what's going on and what's being sought. His second investment in real estate was made in 1993, when the bubble in real estate, especially in New York burst, there were a lot of companies selling buildings and somebody was a friend of his from Solomon was looking at a property apartment building close to the New York University. Of course Buffett bought in, the immediate return was above 10%, rents could have been increased and everything, now his return was after a few years, more than 35%, he refinanced the building twice, so he got immediately 150% of the purchase price back and he now enjoys steady cash flows, it's not a big deal in his entire richness, nevertheless it's important to see how he bought after a bubble burst again, so when it was cheap, again, New York University students are always going to flock there, so there's going to be demand for that real estate, just a great simple investment in a bad period, so always look, okay, is it a bad period and is it trend, the future trend positive? Of course, universities, they will never go bankrupt. So to conclude, really try to look for closures, buying value, where some other people didn't manage to buy value, especially when they're very leveraged, because when a company is very leveraged, then they have to really self make fire sales to cover for that leverage and at that moment, you can enter and really buy assets on the cheap, so really think, okay, the persons are leveraged, but the asset is quality, so very interesting to food forethought to think about and see how Buffett made different kinds of investments during his investment life. Thank you for watching, leave your comments below, looking forward to hear any other interesting sharing investment ideas, because it's always nice to learn from the best in the best. I'll see you in the next video.