Warren Buffet is renowned as one of the worlds savviest investors. In fact, his investment strategies have made him one of the wealthiest individuals in the world.
What is his investment strategy?
- Primary focus is on investments with strong intrinsic value
- Buy investments for the long-term that will grow in value over the long haul
- Reflect on the nature of the investment and its future
- Rather than selling an investment when everyone else is dumping it, he prefers determining if a market downturn provides a good (undervalued) investment opportunity
- Invest in something you he knows and understands
- Avoid herd mentality investing
In fact, this very strategy helped him earn millions on American Express after he invested during a fraud scandal. Because market trends are often based on incomplete information, there is a tendency of investors to overreact. That overreaction is a big part of what Buffet’s investment strategy counts on.
Very few investment strategies are able to stand the test of time, however Warren Buffet’s common sense investment advice has done exactly that, allowing him and many others to enjoy above average returns in occasionally dreary financial markets.
Now let’s look at the real estate market today.
- Real Estate has strong intrinsic value now and in the future
- Oversupply of housing inventory – Buyers market
- Mortgage rates are low – Low debt servicing costs
- Where sellers are inflexible, buyers generally will find plenty of alternatives
- Growing U.S. population = Need for further housing supply in future
- Everyone needs it
So do I think Warren Buffet would invest in real estate today?
My answer is a resounding yes…especially in the Atlanta area!
Note: Warren Buffet is investing heavily in companies that provides direct services tied to a healthy long-term real estate market (e.g. Home Services of America, Wells Fargo, etc…).
Tony Gallegos – Serving the mortgage needs of Kennesaw, Marietta, Roswell, Smyrna, Powder Springs, Dallas, Acworth, Woodstock, Douglasville, Hiram, Austell and Atlanta. Subscribe to The Mortgage Cicerone: