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Buffett tells Berkshire shareholders farmland and other assets can last
Buffett said he bought a 400-acre property in 1986 for $280,000, and by 2014 the farm had tripled its earnings and was worth about five times his purchase price.
Berkshire Hathaway shareholder communications discussed how Warren Buffett views wealth that can endure across generations, highlighting two personal investments he made outside his usual focus on publicly traded stocks, according to Yahoo Finance.
In one example, Buffett described buying a 400-acre farmland property about 50 miles north of Omaha in 1986 for $280,000 after an asset-price bubble burst in the Midwest.
Yahoo Finance notes Buffett said he knew little about operating a farm, but he learned about corn and soybean production and farm expenses through his family’s interest. Buffett then expected a normalized return of 10%, anticipating improving productivity and higher crop prices.
Buffett also told shareholders that those expectations came to pass, saying the farm tripled its earnings by 2014 and grew to a value about five times what he paid, and he framed the investment as a solid holding for his lifetime and for his children and grandchildren.
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