The Oracle of Omaha has finally made it to the cover of Time magazine. It’s a first, which seems long overdue, considering Warren Buffett’s investment wizardry and, increasingly, his outspoken willingness to talk straight about everything, including the future of the American economy.
On that note, the profile of Buffett — an excellent read titled “Warren Buffett is on a Radical Track” — contains the octogenarian’s thoughts on the U.S. housing market. It is a succinct analysis of what Buffett believes is the intricately linked relationship between housing starts and employment.
Once we get back to a million housing starts per year”– the current tally is 685,000 — “I think pundits will be surprised just how fast unemployment will come down in this country,” he says. “There are 4 million people hitting age 22 every year in this country. Sure, you can double up on households for a while, but at some point, hormones kick in, and living with your in-laws loses its allure.” Buffett notes that nearly every one of his major non-housing businesses has had several strong quarters, and Berkshire companies are making a record number of investments, the vast majority of which are in the U.S. “I am 100% sure that people in this country will be doing more business 10 years from now than they are today.”
All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. No representation is made as to the accuracy of any description.
