MoneyNews ran an interesting article about Warren Buffett’s investment activity in the current market.
Like always, you have to read between the lines with that guy. He never just comes right out and says what he thinks, but you can clarify his convictions by analyzing what he’s buying.
And what is he buying? Apparently, some subprime mortgages have been in his sites.
Yet another very good sign for the real estate market.
To be certain, Warren Buffett has plenty of bad to say about the economy. He worries about extended period of stagflation and the ever-rising cost of oil.
But what he’s buying is the real story, not what he’s fretting about.
As with the very positive real estate market news from both Goldman Sachs and ESL Investments, this is yet another indication that those “in the know” see more opportunity than risk in the real estate market. It doesn’t mean that every market in the USA is going to go positive instantly, but it’s hard to imagine that the underlying motivation for these activities is pessimism.
Just a little food for thought.
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2 Comments So Far»
great thoughts
I use a lot of Warren Buffett’s Growth/Value investing strategies for picking stocks. Real Estate right now looks to me to be the perfect Growth/Value play!
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