Warren Buffet on housing, acquisition and more

investor at 7:16 a.m. Sun 28 Feb 2010

The latest Berkshire Hathaway investment letter has Buffet’s usual thought provoking and fun comments on everything from house prices to value destroying acquisitions.

The most amusing bit is this comment on house prices:

There were three ways to cure this overhang: (1) blow up a lot of houses, a tactic similar to >the destruction of autos that occurred with the “cash-for-clunkers” program; (2) speed up household formations by, say, encouraging teenagers to cohabitate, a program not likely to suffer from a lack of volunteers or; (3) reduce new housing starts to a number far below the rate of household formations.

There is also a defence of their acquisition of a railway company.

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