MGI PROPERTIES
SC 13G, 1998-10-23
REAL ESTATE INVESTMENT TRUSTS
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<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549


                                 SCHEDULE 13G
                                (RULE 13d-102)


            INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
          TO RULES 13d-1(b)(c), AND (d) AND AMENDMENTS THERETO FILED
                          PURSUANT TO RULE 13d-2(b)/1/


                                MGI Properties
- -------------------------------------------------------------------------------
                               (Name of Issuer)


                                 Common Stock
- -------------------------------------------------------------------------------
                        (Title of Class of Securities)


                                  552885 10 5
- -------------------------------------------------------------------------------
                                 (CUSIP Number)


                               October 14, 1998
- -------------------------------------------------------------------------------
            (Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to
which this Schedule is filed:

[   ]     Rule 13d-1(b)
[ X ]     Rule 13d-1(c)
[   ]     Rule 13d-1(d)


                        (Continued on following pages)
                               Page 1 of 5 Pages

- ----------------

/1/  The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
 
- -----------------------                                  ---------------------
  CUSIP NO.  552885 105             13G                    PAGE 2 OF 5 PAGES
- -----------------------                                  ---------------------
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
                                                                                
      Warren E. Buffett                                                         
                          
- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2                                                              (A) [_]
                                                                (B) [_]
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 4                                 
      United States Citizen

- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     5                                                       
     NUMBER OF            700,000
 
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      6       
                          0
     OWNED BY
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     7       
    REPORTING             700,000
 
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH          8       
                          0
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 9                           
      700,000
- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10           
      Not Applicable                                                    [_]
      
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11           
      5.087%  

- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
12           
      IN

- ------------------------------------------------------------------------------
<PAGE>
 
ITEM 1(a). NAME OF ISSUER:


     MGI Properties


ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:


     One Winthrop Square
     Boston, Massachusetts 02110


ITEM 2(a). NAME OF PERSONS FILING:


     Warren E. Buffett


ITEM 2(b). ADDRESS OF PRINCIPAL BUSINESS OFFICE:


     1440 Kiewit Plaza
     Omaha, Nebraska 68131


ITEM 2(c). CITIZENSHIP:


     United States Citizen


ITEM 2(d). TITLE OF CLASS OF SECURITIES:


     Common Stock, $1.00 par value


ITEM 2(e). CUSIP NUMBER:


     552885 10 5



ITEM 3.   IF THIS STATEMENT IS FILED PURSUANT TO RULES 13d-1(b), OR 13d-2(b),
          CHECK WHETHER THE PERSON FILING IS A:

     (a) [ ]   Broker or Dealer registered under Section 15 of the Act.

     (b) [ ]   Bank as defined in Section 3(a)(6) of the Act.

     (c) [ ]   Insurance Company as defined in Section 3(a)(19) of the Act.

     (d) [ ]   Investment Company registered under Section 8 of the Investment
               Company Act of 1940.

     (e) [ ]   An investment advisor registered in accordance with Rule 13d-
               1(b)(1)(ii)(E);

     (f) [ ]   An employee benefit plan or endowment fund in accordance with
               Rule 13d-1(b)(1)(ii)(F);

                                  Page 3 of 5
<PAGE>
 
     (g) [ ]   A parent holding company or control person in accordance with
               Rule 13d-1(b)(ii)(G);

     (h) [ ]   A savings association as defined in Section 3(b) of the Federal
               Deposit Insurance Act;

     (i) [ ]   A church plan that is excluded from the definition of an
               investment company under Section 3(c)(14) of the Investment
               Company Act;

     (j) [ ]   Group in accordance with Rule 13d-1(b)(1)(ii)(J).


If this statement is filed pursuant to Rule 13d-1(c), check this box.    [x]


ITEM 4.      OWNERSHIP

     (a)  Amount Beneficially Owned:

          700,000 shares of Common Stock, $1.00 par value

     (b)  Percent of Class:

          5.087% of Common Stock

     (c)  Number of shares as to which such person has:

          (i) sole power to vote or to direct the vote

              700,000

          (ii) shared power to vote or to direct the vote

               0

          (iii) sole power to dispose or direct the disposition of

              700,000

          (iv) shared power to dispose or to direct the disposition of

              0

                                  Page 4 of 5
<PAGE>
 
ITEM 5.   OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.

     Not Applicable

ITEM 6.   OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.

     Not Applicable

ITEM 7.   IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
          THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY.

     Not Applicable

ITEM 8.   IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.

     Not Applicable

ITEM 9.   NOTICE OF DISSOLUTION OF GROUP.

     Not Applicable

ITEM 10.  CERTIFICATION.

     By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having such purpose or effect.


                                 SIGNATURE

         After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Dated this 23rd day of October, 1998


/s/ Warren E. Buffett
- ---------------------
Warren E. Buffett

                                  Page 5 of 5


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