DIGIVESTASI - Warren Buffett is known as an accomplished investor in the world of stocks, but besides stocks, there are two other types of investment assets that are his choice. Although many people suspect that Buffett is also investing in Bitcoin, it turns out that he is not interested in the cryptocurrency. As reported by Moneywise.com on Monday (7/10/2024), Buffett revealed his unwillingness to invest in Bitcoin.

During Berkshire Hathaway's annual shareholder meeting, Buffett stated that while he cannot be sure whether Bitcoin's value will rise or fall in the future, he believes that “Bitcoin doesn't make anything.”

“If you had all the Bitcoin in the world and offered it to me for $25, I wouldn't take it,” Buffett said. “I'd have to resell it, and it wouldn't do anything.”

At the time of the statement, Bitcoin was trading at around US$38,000 per coin. Although it has now reached US$68,667, Buffett is still not tempted.

Instead, Buffett mentioned two assets that he prefers: farmland and apartment buildings, as both produce something concrete.

“Farmland will produce food, and apartments will produce rental income,” he explains.

For conservative investors who avoid risk and volatility, productive assets like these are more attractive than Bitcoin's long-term upside potential.

Farmland

Farmland and Bitcoin are very different. Bitcoin was invented in 2009, while the agricultural sector dates back about 10,000 years.

Buffett may not be known as an agricultural investor, but he sees great value in owning farmland as a tangible asset that produces food. According to him, buying farmland means owning something tangible and productive.

“If you asked me to buy 1% of all the farmland in the US for $25 billion, I would write a check today,” Buffett said.

While you don't need to have $25 billion to invest in farmland, there are other ways to do it. Real estate investment trusts that are traded on the public market allow you to invest with less capital. In addition, crowdfunding platforms also facilitate partial purchases of properties including farmland.

With high inflation, prices of agricultural commodities such as corn and soybeans continue to soar, making this investment even more attractive.

Property

In addition to farmland, Buffett is also interested in apartment buildings, provided the price is right.

“If you offered me 1% of all the apartment buildings in the country for $25 billion, I would write a check,” he said.

In both good and bad economic times, the need for housing remains. With property prices getting more expensive in many areas, renting is the only option for many, making apartments a lucrative investment.

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