Warren Buffett, whose prediction last year of a housing
recovery was premature, is raising his bet on a rebound with his $3.85 billion
bid for a mortgage business and loan portfolio from bankrupt Residential
Capital LLC, the good folks at Bloomberg report.
The offer “certainly indicates that he thinks the worst is
behind us,” Jeff Matthews, author of “Secrets in Plain Sight: Business &
Investing Secrets of Warren Buffett,” said in a phone interview. “Yes, he’s
been wrong about housing before. But if you look at any credit metric, if you
look at any of the banks and what’s happening in their loan portfolios, it’s
getting better.”
Foreclosure filings in the U.S. have fallen on an annual
basis for 20 straight months, according to RealtyTrac Inc., and home prices
jumped 1.8 percent in March…., Buffett’s Berkshire Hathaway Inc. has prepared
for a turnaround by buying a brickmaker, expanding its real estate brokerage
and wagering on commercial property through a company jointly owned with
Leucadia National Corp. (LUK) The venture, called Berkadia Commercial Mortgage
LLC, was formed from a loan- servicing and mortgage business purchased out of
bankruptcy in 2009 and once owned by ResCap’s parent….
Read more at http://www.bloomberg.com/news/2012-06-18/buffett-extends-real-estate-bet-with-rescap-pursuit-mortgages.html
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