Posted on 03/17/2025 7:16:21 AM PDT by Kid Shelleen
Warren Buffett is likely selling his real estate empire - the latest warning sign that the property market is in dire straits.
The real estate market has been on the skids in recent years. Brokerage companies have attempted to consolidate as home sales remain very low.
Compass, the largest real estate brokerage in the country, is in advanced talks to acquire Berkshire Hathaway’s HomeServices of America, the fourth-biggest player in the industry, according to The Wall Street Journal.
(Excerpt) Read more at dailymail.co.uk ...
Even if true, and especially considering this source...
“A truth that’s told with bad intent, Beats all the lies you can invent.”
William Blake
“according to people familiar with the matter”
is that anything like double-secret probation?
just more rumors being reported as “news” ...
Exploding home prices and high interest rates might have a little to do with this.
Worked with investors once that were focused on IRR (internal rate of return). Our company was buying distress loans. Many loans with some work were fully collectible but the investors wanted more money fast so they would be settled for much less.
The assumption of that model is there is always more deals in the future. Buffet is looking for new deals.
IRR is very short term mgt.
No new flow and now, hopefully. millions deported, probably the best time to sell.
Buffett typically sells an asset when he guesses that it’s likely to under-perform over the next 10-20 years. He’s usually right, but he’s occasionally spectacularly wrong. Up until the late ‘90s, for example, Buffett held a huge stake (> 4%) in McDonald’s. Around 1998, Ol’ Warren decided that the fast-food market was saturated, McD’s growth days were in the past and dumped every last share. Punchline: over the last 27 years, MCD has outperformed both Berkshire-Hathaway and the S&P 500... by a wide margin.
could also very well be Buffett is old (94) and rearranging his things to make it easier for when he passes. Maybe he got a diagnosis and has idea of when.
When you deport 11 million illegals that are living on gov $, at inflated rental fees, then the money scam dies. Millions of houses become empty and the demand will be much lower. There goes the market, all of the “BlackRock “ players storming the rental business will be looking for the door. Prices will drop, values will drop.
The DOGE is ending the money machine along with deportations.
WWG1WGA!
Thanks
bkmk
A recent court settlement weakened the ability of real estate brokerages and the MLS system to set high commissions using anti-competitive rules and practices. Over time, this settlement will reduce commissions and adversely impact Berkshire’s stream of revenue. Plainly, Buffet preferred to sell his brokerage business.
Having watched and owned Buffet for years I’ve learned to not put a lot of faith in people’s take on his moves. His portfolio is so huge that there is constant rebalancing going on. BRK/B hit a new all-time high this morning, by the way.
The dude is 94 years old, anyone think maybe he’s just cashing out before he cashes out?
“The dude is 94 years old, anyone think maybe he’s just cashing out before he cashes out?”
No, not at all. He is monument building, like almost older successful people. They want to leave with that legacy of accomplishment intact. The people who will take over when he passes are already in place and highly regarded. They are also a bit more aggressive than Warren which will be interesting. Buffet says money has no utility to him and he has lived that way. He’s in the same middle-class level house he bought decades ago. He likes the game, not spending the money. He’s helped many investors succeed, and I think that is his favorite thing.
As my son would say, “Money gotta go somewhere.”
Here’s how to understand what Buffet has done for others and why he’s different from most giant investors:
I agree. He rightly determined that the revenue stream would be challenged.
“just more rumors being reported as “news” ..”
Exactly, everybody knows you’ll read anything that has “buffet” in the headline. My favorite was all the excitement when he sold billions of dollars worth of Apple. Breathless articles were everywhere about “Biden dumps Apple!” After the big sale, Buffet’s largest holding was: Apple, by a lot. He just rebalanced a bit. If you want to know what Buffet is doing, watch what he does, not what others say about what he does.
Sorry,
Guess it is all in how you look at things.
If, ad I fully expect, Trump’s policies force the interest rates down, and even if housing prices moderate, from the perspective of potential buyers, this is a great thing and I say this as a homeowner.
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