Everyone knows Warren Buffett is the stock guy. But here's the thing. The exact same principles that made him and Charlie Munger billions in the stock market can make you wealthy in real estate. In this episode, I'm going to share five timeless Buffettmonger investing rules and show you how to apply them directly to buying rental properties. And I'm joined by my friend Michael Zuber from one rental at a time, where this episode originally aired. Thanks to Michael for letting me share it with you. As you know, War Buffett and Charlie Munger, I'm a big fan of their thinking and is how they invest, but I think the most useful thing is to apply it across the spectrum. They buy businesses. They own some really amazing businesses in Berkshire Hathaway. But I think they actually, their principles apply even more to real estate investing. And so I'll just go down the list. And then I want to hear your feedback too because I think it's interesting. The first thing that I reviewed with them was they always recommend that you invest inside your circle of competence. And to me, I see so many this mistake myself sometimes, but also just so many people when I'm coaching other people in real estate investing. They listen to a podcast. They listen to a YouTube thing. And they're like, oh, that strategy sounds cool, like co-living or rent by the room or short-term rentals or blah, blah, blah, blah. You know, whatever this niche or strategy is or even a different market. You know, this market across the country is great. I've heard this got great, I've written the price ratios. But is that inside of your circle of competence? Like, are you good at that? And I love the advice. Charlie Munger really talks about this a lot. He says there's no, there's no shortcut to making money. And the main thing that the main hurdle you have to get over is knowledge. Like you have to get good at something. You have to

master some area of knowledge. And in real estate, best thing that to me is understanding

the market. You and I talk about it's doing the work, studying your market. It might be going

deep on some little subject.

It might be like you're really good at remodels. You're really good at short-term rentals

and leasing and figuring out the niche of how to price your short-term rentals. It might be that

you're really good at some acquisition strategy. I know people who buy properties at auctions

at the foreclosure auction. And they just study that stuff like they're getting a PhD and the local auction. So I guess that's that's number one, Michael. It's like there is there's no shortcut. You have to stay inside your circle of competence. And if you step outside of that, you're you're asking for trouble and invest in. Yeah, no, I think this is a, this has to be number one.

You know, sometimes you can look at it the other way and, you know, shiny objects. I mean, how many people have we talked to, you know, day one, they want to do, you know, boring, you know, monthly rentals, and then they want to do STRs, and then they're doing ground up development. Then they're doing syndications. And then, and then, and then. So, yeah, figure out what your circle of competence is, invest there.

And then also... They're doing syndications and then and then and then. So yeah, figure out what your circle of competence is, invest there.

And then also realize it takes consistency, right?

That's another thing that you saw from both Warren and Charlie is that they were remarkably

consistent.

And they realized that getting wealthy takes time.

This is not a get rich tomorrow thing.

So I love number one. What do you got for number two? Number two is all about the moat.

So think about a castle. A castle has a moat. And this is probably one of the number one

investing principles is that you have to buy a business and investment that has a competitive

advantage, I guess,

every other investment out there in the market. And so to me, real estate's a really good example

of this. Like they buy businesses that have competitive modes, usually like a brand. They buy Coca-Cola,

and it's like almost impossible to replicate the brand that Coca-Cola has. It's almost impossible

...