Warren Buffet Thinks It’s a Good Time to Purchase Real Estate

If you’ve never heard of Warren Buffett, then you should probably go out more. But if going out more isn’t your thing, then maybe you should read more.

So here’s a quick overview: Warren’s a self-made multi-billionaire whom most consider to be the Bill Gates of finance. He’s also given away most of his money to charitable causes while helping a lot of people make money.

Lots of it.

Oh, so now you’re interested, huh?

But First, the Bad News

It doesn’t matter if you’re a Republican, a Democrat, or an Independent. Our economy sucks. But it’s not just ours. The whole world is still feeling the effects of the Global Economic Crisis (that’s GEC, to you) that hit us all in 2008.

And if you’ve been paying attention to the election campaign (as you should), then you know that the so-called experts expect more doom-and-gloom. Everyone keeps saying the same thing: that prices have gone up but wages haven’t kept pace, therefore, the average American is screwed.

Ouch.

It explains why Americans might actually vote a socialist like Bernie Sanders for president.

And Now the Good News

Not to imply that Bernie would make a bad president, but let’s get back to Warren.

Warren agrees that the economy sucks, but (and it’s a big “but”) it isn’t all that bad. Given that he’s a multi-billionaire, don’t you just want to slap him?

But wait. The stats seem to back him up. Our country’s fourth quarter GDP for 2015 was really bad, but the official estimate for this year shows a 1% increase from that period’s lousy 0.7%. Consumer spending and retail sales were up in January this year, causing inflation to rise by 1.3%.

Rumor even has it that the people at the Federal Reserve actually cracked smiles of relief. But that’s obviously ridiculous since everyone knows they’re incapable of human emotion, right?

Warren’s Bombshell

Invest in real estate. In November last year, Warren dumped his shares in Goldman Sachs and Wal-Mart in favor of high-end real estate companies. And he’s still gobbling them up like crazy.

Industry experts said, “What!? You’re crazy! Dump Wal-Mart and Goldman Sachs!?”

But Warren started telling his shareholders to do so for a while, now. In his 2002 letter to shareholders, he wrote:

“A few years ago… [we] found [ourselves] in the residential real estate brokerage business. It is no accident, however, that we have dramatically expanded the operation. Moreover, we are likely to keep on expanding in the future…”

And His Second Salvo

He also said to invest in the North American Free Trade Agreement (NAFTA). While the US economy isn’t doing as well as it used to, Canada’s is (comparatively more) stable, while Mexico’s is improving. And despite the “North American” bit, Mexico is part of NAFTA.

For now, Warren’s focusing on Canadian stocks, but with China’s economy slowing down, Mexico is starting to look good. According to Credit Suisse, the Mexican peso’s value has plunged 25% in relation to the US dollar as of February 2016, further increasing the greenback’s value to the peso.

It’s why Volkswagen, Toyota, Nissan, Ford, General Motors and many more have begun increasing their production in Mexico. Compared to the sweatshops and toxic environment of China, as well as their lax attitude (to put it mildly) toward intellectual property rights, Mexico is starting to look better and better to foreign investors.

Do you know what else they call Warren? They call him the “Oracle of Omaha.” Unlike the one at Delphi in ancient Greece, however, he has a fantastic track record.

But only if you base it on the billions he’s made so far.

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