Warren Buffett Quotes-Property Investment lessons (The Bugle)

Warren Buffett, known as the Oracle of Omaha, is the world’s most successful investor (currently he is worth US$44bn) and has been an inspiration to millions of people around the world who have paid attention to what he says, and profited as a result. On 18^th June Bloomberg reported that Warren Buffett had bid US$3.85 billion for a mortgage business and loan portfolio of a bankrupt company called Residential Capital LLC. This is interesting as it indicates that he believes that there is significant upside potential in the American residential property market. Buffet’s Berkshire Hathaway Inc. group has prepared for a turnaround by buying a brickmaking business and expanded its real estate brokerage business it has. So with Warren Buffett preparing for the future of the property market in the US, and he is currently 81 years old, what are you doing? Here are seven great quotes from Warren Buffett that can guide our decision making: (1) “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” It is a great time to acquire a buy-to-let property now while the percentage of buy-to-let buyers is at a low of 8% in South Africa. You will have an excellent choice, will be able to secure the best possible pricing from motivated sellers and will not be competing with a horde of other buyers. (2) “Our favourite holding period is forever.” Take a long-term view. At 81 Buffett still is. You may not be around forever, but your children and the following generations will. Secure an income yielding property now, with 50% debt and 50% equity, and you will soon be in a cash positive situation. (3) “Risk comes from not knowing what you are doing.” If you are unsure about where best to invest, seek out those people who are knowledgable in the market and ask their advise. (4) “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” It is an exceptional time to be greedy in buying properties at depressed prices. (5) “Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” In property, you make your money when you buy, rather than sell. Buy low enough to lock your future profit in today. (6) “Price is what you pay. Value is what you get.” Recognize the difference between the price and value, and learn how to see outstanding value in the property market by using a realtor that can provide detailed factual information on comparable transactions. (7) “Someone’s sitting in the shade today because someone planted a tree a long time ago.” Invest in that property today so that your children can benefit in the future.