A funny thing happens in real estate. When it comes back, it comes back up like gangbusters.

"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." — Robert G. Allen.

Though investing in a savings account is a sure bet, your gains will be minimal due to the extremely low interest rates. But don't forgo one completely. A savings account is a reliable place for an emergency fund, whereas a real estate investment is not.

We don't prognosticate macroeconomic factors; we're looking at our companies from a bottom-up perspective on their long-run prospects of returning.

It's very difficult to predict when the next recession or stock market crash will come, so many of the best investors don't even try. Instead, look for good companies with the strength to make it through the occasional challenging economic environment