If you are considering investing in USA property, I’d head the words of one of the world’s smartest investors.
Warren Buffett, often regarded as one of the world’s smartest investors recently admitted that he was “dead wrong” with a prediction that the U.S. housing market would begin to recover by now, but he remains optimistic about the nation’s economy.
The Globe and Mail reported that in his annual letter to Berkshire Hathaway shareholders, Mr. Buffett said he is sure housing will recover eventually and help bring down the nation’s unemployment rate.
But he did not predict when that will happen.
Mr. Buffett, 81, the so-called Oracle of Omaha, built a roughly $44-billion (U.S.) fortune by following a steadfast, no-nonsense investing strategy.
Mr. Buffett said housing “remains in a depression of its own,” but he predicted, in typical plain-spoken style, that the housing market will come back because some human factors can’t be denied forever.
“People may postpone hitching up during uncertain times, but eventually hormones take over,” he wrote.
“And while ‘doubling-up’ may be the initial reaction of some during a recession, living with in-laws can quickly lose its allure.”
The housing prediction proved painful for Berkshire Hathaway. It owns more than 80 subsidiaries, including the Geico insurance company and See’s Candy, and five of them depend on construction activity.
I’ve written a number of blogs explaining why I would not invest in the USA now matter how cheap properties seem.
You can read them here.
These words from one of the investors I respect the most have done nothing to change my mind.
Subscribe & don’t miss a single episode of michael yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to michael yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.