Invest Like Warren Buffett

Invest in Denver Area Real Estate?

Since the beginning of the year we’ve been telling our clients that now is the time to start investing in Denver area real estate.  Here are some of the past articles.

• The Rich Get Richer
• Investment Trends

Some things to consider

• Prices are 10%-25% lower currently than they were last year.  This equates to the market, in general, being “On Sale”
• The Denver market has appreciated every month since March this year.  This tells me that the “Sale” is over, or will be very soon!

We have been advising clients based on our 18 years of experience in the market.  There have been numerous people take advantage of the bargain pricing, but I fear many of our clients will be left telling themselves, “I wish I would have bought properties during the housing crisis of 2007-2008!”

So in an attempt to move the weary off the fence a bit, I wanted to share with you some thoughts from the pre-eminent investor in US history, Warren Buffett.  Mr. Buffett, through his investment company Berkshire Hathaway, own real estate companies and continue to acquire more real estate assets based on the current “opportunities” in the real estate markets.

Quotes From Warren Buffett

I will tell you how to become rich. Close the doors. Be fearful when others are greedy and greedy when others are fearful.
Lecturing to a group of students at Columbia U. He was 21 years old.

The most common cause of low prices is pessimism – some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It’s optimism that is the enemy of the rational buyer.
1990 Chairman’s Letter to Shareholders

We will reject interesting opportunities rather than over-leverage our balance sheet.
Berkshire Hathaway Owners Manual

Managers thinking about accounting issues should never forget one of Abraham Lincoln’s favorite riddles: `How many legs does a dog have if you call his tail a leg?’ The answer: `Four, because calling a tail a leg does not make it a leg’.

Tell us what you think.  Do you believe that this is a good time to be a buyer in the real estate market, and if not, why?

photo credit: trackrecord