Thousands of words have been dedicated to explaining Warren Buffett's investment strategy over the years, both by the legendary investor himself and others. All of that, however, can be boiled down to one advice: buy quality businesses at reasonable prices. Put differently, you want to buy a sound business that will last while not overpaying for it.

Let's look at two Real Estate Investment Trusts (REITs), Rithm Capital (NYSE: RITM) and Medical Properties Trust (NYSE: MPW), and a bank, Live Oak Bancshares (NASDAQ: LOB). They not only qualify as Buffett stocks but also sport a nice dividend yield the future prospects to allow you to make $500 a year in passive income if you split an investment of $10,000 equally between the three.

Rithm Capital is a unique type of REIT. Unlike other REITs, it doesn't specialize in owning and leasing property; instead, it borrows money and invests in mortgages, mortgage-backed securities, and mortgage servicing rights. This type of REIT is called a mortgage REIT (mREIT).

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Source Fool.com