• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

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.

Find a financial adviser in minutes

Are you confident in your retirement savings? Get advice on your investment portfolio from a certified professional through WiserAdvisor. It only takes 5 minutes to connect with an adviser who puts you first.

Get Started

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.

For instance, Camden Property Trust (CPT) owns, manages, develops and acquires multifamily apartment communities. It has investments in 171 properties containing 58,433 apartment units across the U.S. and offers an annual dividend yield of 3.3%.

Essex Property Trust (ESS) invests in apartments primarily on the West Coast. The REIT currently yields 4.1%, backed by its ownership interest in 253 apartment communities — in California and Seattle — totaling approximately 62,000 units.

The bottom line

Buffett prefers farmland and apartment buildings to bitcoin for a very simple reason: They produce something.

“The apartments are going to produce rent, and the farms are going to produce food.”

Bitcoin boasts exciting long-term upside potential. But for risk-averse investors who’d like to sidestep as much volatility as possible, sticking to productive assets is a prudent idea.

Sponsored

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.