Warren Buffett just said he doesn’t own bitcoin because ‘it isn’t going to do anything’ — he’d rather own these 2 productive assets instead

And that’s why the Oracle of Omaha doesn’t own the asset.

“If you told me you own all of the bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it?” he asks. “I’d have to sell it back to you one way or another. It isn’t going to do anything.”

To put that in perspective, bitcoin was trading at around $38,000 a piece when Buffett made those comments. Now, the cryptocurrency has fallen to $17,300.

While criticizing bitcoin, Buffett touched on two assets that he would buy if given the opportunity.

More: Warren Buffett on Bitcoin

Farmland

Agriculture and bitcoin don’t have much in common. Bitcoin was created in 2009 while agricultural communities began to form about 10,000 years ago.

Buffett isn’t known for being an agricultural investor, but he sees value in an asset class that’s critical to the sector — farmland. His point is if you buy farmland, you hold a tangible asset that produces food.

“If you said, for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon,” Buffett says.

Of course, you don’t need to have $25 billion to invest in U.S. farmland. Publicly traded real estate investment trusts — that specialize in owning farms — allow you to do it with as little money as you’re willing to spend.

Gladstone Land (LAND), for instance, owns 169 farms totaling 115,000 acres. It pays monthly distributions of $0.0458 per share, giving the stock an annual dividend yield of 2.7%.

Then there’s Farmland Partners (FPI), a REIT with a farmland portfolio of 190,000 acres and an annual dividend yield of 1.8%.

Plus, online crowdfunding platforms allow you to buy pieces of real estate, including farmland.

With inflation running hot, the prices of agricultural commodities including corn and soybeans are soaring to new highs.

Apartments

Apartment buildings are another asset that Buffett wouldn’t mind owning at the right price.

“[If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check. It’s very simple,” the legendary investor says.

Whether the economy is booming or in a recession, people need a place to live. And with real estate prices rising to unaffordable levels in many parts of the country, renting has become the only option for many people.

You can always buy an apartment building yourself, find tenants and collect the monthly rent checks. Of course, apartment-focused REITs can do that for you.