Monday, December 28, 2009

Buffett Back on Board!

The Global Investing blog on Reuters points out that Warren Buffett is getting back into the real estate market. I think Buffett is a genius and this news is definitely another vote in favor of the economy turning around soon.

However, the thing everyone needs to remember with Buffett is that his time horizon for a long term investment is probably a lot longer than most other people's. Though housing may have hit a bottom, that does not necessarily mean that it will definitely be a good investment for the next 5 years or so. Actually it might be, but that's not to say that there aren't other better investments available.

And heaven forbid, if haven't seen the bottom, then housing is one of the most illiquid investments to be in! Just tossing in my two cents to say that people should not read this news as a signal to get long second mortgages again!

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