W
arren Buffett, the chairman and CEO of Berkshire Hathaway, was asked by an audience member at the company's annual shareholder meeting why he continues to invest in stocks rather than real estate. The questioner, Jackie Han, noted that many Americans have a soft spot for real estate, with 37% of those surveyed by Gallup identifying it as their top choice for long-term returns.

    Buffett responded that his right-hand man, Charlie Munger, had a fondness for real estate deals, but only as a hobby. Buffett believes that the stock market offers more opportunities than real estate in the United States, citing the S&P 500's total return of 5,006% since 1988.

    Buffett's faith in the US stock market is unwavering, and he attributes his success to being born in America. However, he acknowledges that buying property can be a hassle, requiring more time and attention than investing in stocks. He notes that even Berkshire Hathaway's vast resources cannot eliminate the complexities of real estate investing.

    Buffett appreciates the simplicity of buying and selling stocks, which can be done quickly and anonymously through exchanges like the New York Stock Exchange. In contrast, real estate deals often involve negotiations with multiple parties, making it a more time-consuming process.