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Billionaire Warren Buffett's Third-Best InvestmentBy
Thursday, March 3, 2011
"All things considered, the third-best investment I ever made was the purchase of my home."
Billionaire Warren Buffett said that in his annual letter to shareholders over the weekend.
Buffett is bullish on housing...
"Home ownership makes sense for most Americans, particularly at today's lower prices and bargain interest rates," he wrote.
Just last week, I wrote the same thing to subscribers of my newsletter, True Wealth:
Now is the best time in American history to buy a house.
Home prices have crashed more than at any time in our lifetimes. And mortgage rates recently hit all-time lows. Houses are more affordable than ever.
Things are getting Less Bad. The recession is over. Housing starts bottomed, and the supply of new homes on the market peaked. Homebuilders like Toll Brothers are "back to growing," and my home inspector friend is "swamped" with business.
If you can buy a house, now is the time – the best time in history. While prices may not soar immediately, I believe we're seeing the lows RIGHT NOW.
Last week, I thought I was standing alone, saying this. But after Warren Buffett's annual letter came out over the weekend, it appears I have company... The man who is arguably the greatest investor in history agrees with me about housing.
One of my main conclusions in True Wealth was:
Homebuilding is cyclical. And I believe we've just finished the worst of this down cycle – which is the worst ever seen in our lifetimes, and likely the worst we will ever see. Now comes the upturn. Get in early... get in now.
In that issue of True Wealth, I specifically say what to do... which could show you gains of as much as 1,000%. (I know that number sounds crazy, but this strategy returned 1,064% in the late 1970s.)
If you're not a subscriber, you can still take action...
Last week, I said it's the best time in history to buy a house. And over the weekend, the world's best investor agreed with me.
You can listen to your neighbors, the government, or the news media complain about how terrible housing is. Or you can listen to the advice of the best investor in history (Buffett).
Who do you think has a better chance of being right?
U.S. housing is a fantastic deal right now. If there's any way for you to take advantage of it, you must.
Good investing,
Steve
Further Reading:
Home prices are down and mortgage rates are at historic lows. "Homes are more affordable than ever," Steve writes. See the charts that prove it's the best time in history to buy a house.
Read about more real estate opportunities in Steve's home state here:
Market NotesSILVER JUST BROKE ITS "MAGIC NUMBER" Watch out for flying silver prices. If superinvestor Chris Weber is right, they're headed much higher in the coming years...
Two weeks ago, we featured a contribution from our friend Chris Weber. He's one of the best investors in the world... and particularly masterful with his analysis of the gold and silver markets.
Chris' take on silver is that governments around the world are locked in a long-term competition to debase their paper currencies. This will drive up the price of "real money" assets like gold and silver.
In his essay, Chris noted that after surging from $18 to $30 per ounce in 2010, silver barely took a breather. Chris said he's "never seen such strength" from silver... and if silver closed above its old high of $30.91, it was a sign the metal was due for another big run.
As you can see from today's chart, silver has blasted above its old high. While we can't know the future, we know this metal is capable of huge moves... and like Chris, we wouldn't be surprised to see silver surge to $50 per ounce.
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