Phil Town

Real estate.

And Buffett's one of the best real estate investors around.

Absolutely fabulous investor in real estate.

He bought a building in New York City not too long ago near NYU.

He bought a farm operation out near Omaha.

The guy owns 60 or 70 private companies.

So there's no difference.

It's a fallacy to think that, oh, there's public stock investing and then there's the rest of the world.

Not true.

That's right, because the whole concept is that you have to understand the business that you're in, the business that you're buying as an investor.

And people, as I said, become very comfortable with real estate because they think they can judge whether it will go up in the long run.

And that's the essence of investing is you're looking at buying into a company like Chipotle Mexican grill.

You've got to have a view that says that, you know what, I'm going to put my money in here.

And 20 years from now, this is going to be worth a lot more than it's worth today or John Deere tractor, or you name it.

And that's the essence of a good investment is you look at it.

Oh, the house next door.

Is it going to be worth more in 20 years?

Yeah, probably will be.

So therefore I have, if I buy into that, I have a free lottery ticket.

I'm paying money.