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Warren Buffett offers lesson in value investing

Published February 24, 2014 8:55 am

This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Omaha, Neb. • Warren Buffett is offering a refresher course on his approach to investing in his annual letter to Berkshire Hathaway Inc. shareholders.

Buffett's full letter won't be released until Saturday, but Fortune magazine published an excerpt of it online (http://bit.ly/1hKsIk1 ) on Monday.

The billionaire uses two personal real estate investments he made to demonstrate some of his key principles. Buffett bought a Nebraska farm in 1986 and part of a retail property near New York University's campus in 1993. Both purchases were made after prices collapsed.

Buffett says he didn't know much about farming or retail, but he knew enough to determine the farm near Tekamah would remain productive and the retail center would keep appealing to NYU students.

Buffett says he could tell both investments had little downside.