Grant Cardone says Warren Buffett’s big investments all have 1 trait in common

Cardone went on to describe the durability of his investments. “The real estate I buy is indestructible,” he said. When Paul asked why, Cardone explained that his properties generate rents of $1,500 a month, and no matter what happens, those rents aren’t likely to drop below that level.

Cardone makes a solid point. High-quality properties can provide investors with a steady stream of passive income, which often adjusts with inflation over time. Additionally, inflation tends to push property values higher, reflecting rising costs of materials, labor and land.

The best part? You don’t need to be a real estate mogul like Cardone to take advantage of this strategy. One popular option is publicly traded real estate investment trusts (REITs), which own income-producing properties, collect rent from tenants, and distribute a portion of that income to shareholders as dividends.

Another alternative is real estate crowdfunding platforms, which allow everyday investors to own shares in rental properties without the hefty down payments or the responsibilities of property management. Depending on your preferences, you can gain exposure to residential properties, grocery-anchored commercial real estate, or even farmland, all without the traditional barriers to entry.

Read more: Commercial real estate has beaten the stock market for 25 years — here’s how savvy investors can become the landlord of Walmart, Whole Foods or Kroger

High-yield savings accounts offer a low-risk way to generate passive income while keeping your funds accessible. These accounts typically offer much higher interest rates than traditional savings accounts, allowing your money to grow without needing to lock it away in long-term investments. This option is ideal for those who want a secure, liquid source of passive income with minimal effort or risk.

These days, some banks and financial institutions are offering high-yield savings accounts that pay upwards of 4.5%.

In the U.S., most savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank. This insurance provides protection to depositors in the event that the bank fails, ensuring that their funds are safe and accessible.

At the end of the day, keep in mind that despite his legendary success in picking winning companies, Buffett doesn’t believe that’s the right approach for most investors.

“I do not think the average person can pick stocks,” he stated bluntly at Berkshire’s 2021 shareholders meeting.

Instead, Buffett champions a much simpler strategy, famously stating, “In my view, for most people, the best thing to do is own the S&P 500 index fund.”

This approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.

Buffett believes so strongly in this strategy that he has instructed 90% of his wife’s inheritance be invested in “a very low-cost S&P 500 index fund” after he dies.

The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time, and some apps even let you invest in an S&P 500 ETF with your spare change, making it easier than ever to build wealth alongside the world’s financial elite.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.