Warren Buffett has again given us his great knowledge into the future and all things beyond. His 2009 statement provides his thoughts on the future of the United States, which is positive and his thoughts on the events that have occurred at Berkshire Hathaway for the past year. He’s positive for the future of the US economy. He even states that his company Clayton Homes will become more profitable. His theory is that the amount of ‘housing starts’ has bottomed out. He shows the amount of homes being built has decreased largely for the 2009 year. This means the housing inventory is kept stable allowing for the foreclosed homes to be bought. This stabilizes the housing prices and keeps current home owners from turning off their house.
Since the 50-to-1 split, Berkshire Hathaway has been making a sudden move up. The price of the stock makes it an easy buy for index funds and mutual funds to add it in their profile. As the stock improves, it will eventually move into the S&P 500. This in turn will make S&P funds purchase more of it. Hence you see the price moving up even with this bad economy.
I’ll be posting another article in the next day of a company that performs similarly to Berkshire Hathaway. They follow the same philosophy and are a pretty ‘unknown’ company to many. It should be a good investment opportunity for people that want a safe investment.
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