3 Priceless Lessons Drawn from Buffet's Letter


3. “Productive Assets”

Buffet is an ardent believer of “productive assets.” To him, these assets are – real-estate, farms and businesses. He views these areas of investments as particularly productive because they yield steady returns each year. These areas, of course, can face troubles and lead to losses but they do assure the investor of returns. If one has chalked out his/her investment in real estate or a business, he/she is sure to benefit periodically. The only thing is to make continuous amendments in these areas to stay abreast of various changes. As Buffet is a big fan of real-estate, you too can earn yourself a good source of steady income by leasing a property you have.

Buffet’s philosophies of investing may not get digested by all but it is up to us to pick and choose the ones we like. After all, one should never blindly follow another person, foregoing his/her personal philosophies. Still, his 3rd philosophy is a much liked one among us Indians.