Warren Buffett and his investment conglomerate Berkshire Hathaway have historically avoided heavy investments in traditional real estate investment trusts, favoring businesses with powerful economic moats, massive consumer brand loyalty, or direct operating earnings such as insurance, railroads, and utilities. While Buffett acknowledges the economic utility of real estate, he generally prefers equities that retain earnings for high-return internal compounding rather than entities legally mandated to distribute the vast majority of taxable income to shareholders as dividends.