Thursday, April 28, 2005

Housing Bust An Opportunity For Buffett?

This quote is on the last line of the MarketWatch article. "Whitney Tilson said, 'But there are also great benefits in having so much liquidity: The housing market bubble could burst for instance. A crisis like that could create investment opportunities for Buffett.'"

Will the people who manage billions of dollars swoop down on the wreckage after a housing collapse?

11 Comments:

At 1:27 PM, Anonymous Anonymous said...

Buffet did a lot of buying during and after the dot com boom. "Traditional" businesses were highly under valued as they will be when people sell their stocks to cover their RE commitments. IN general, any bear market makes a good buying opportunity.

 
At 2:03 PM, Blogger Ben Jones said...

Buffet also openly expressed his caution about the internet stocks. If he sees a bubble, would he say anything publicly? I hope so.

Tilson wasn't speaking for WB, but it is interesting that those sitting on cash expect to gain from this.
Thanks for the comment.

 
At 2:03 PM, Anonymous Rob said...

I will swoop. But not with billions.

 
At 2:08 PM, Anonymous Anonymous said...

noticed how they slipped that line in the very end...bet you thats what buffet and company are banking on to put money to work.

 
At 2:46 PM, Blogger John Law said...

most of the dollar value of warren's portfolio contain investments he made by the end of 1992.

 
At 3:20 PM, Anonymous Anonymous said...

Buffet generally only invests in publicly traded stocks. RE has never been part of his thing, thus that is probably why he doesn't comment. Having said that, I haven't read his 2004 year end report.

Furthermore, lots of public REITs are available on the market and we haven't seen him invest anything in them. That probably says enough right there.

I've also got the impression that Buffet is getting old(er) and tired. He was clearly frustrated that they couldn't re invest some of their portfolio earnings. I suspect that he didn't like the backlash he got when he proclaimed dot com stocks didn't make sense during the height of the frenzy. Who needs that sort of attention ?

Can you imagine all the RE speculators that would jump on him if he came out and said the RE boom was a ponzy scheme ?

 
At 3:22 PM, Blogger John Law said...

I thnk I read in Buffetology that he has some FNM and a REIT or two but he sold them awhile ago.

 
At 4:32 PM, Anonymous Anonymous said...

Warren Buffett does not deserve to suffer the indignity of having his name misspelled.

 
At 4:58 PM, Blogger realist said...

why do people think buffet is such a great guy? google buffet and his see's candy takeover for a better picture of who he is. the workers of that company probably would have been better off with the mob running the company.

 
At 7:34 PM, Blogger Ben Jones said...

(Warren Buffett does not deserve to suffer the indignity of having his name misspelled)

Sorry Warren,
I fixed it.

 
At 5:47 PM, Blogger Mr. Naybob said...

Buffet has recently invested billions in the manufactured housing industry. Either way, he wins. Think about it.

 

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