Are we in a recession and if so, what does it mean to you? Buffett said in an interview with cable network CNBC that the reports he gets from the retail businesses his holding company owns show a significant slowdown in purchases.
“I would say, by any common-sense definition, we are in a recession,” the Berkshire chairman and chief executive said on CNBC.
http://www.chicagotribune.com/business/chi-tue-warren-buffettmar04,0,2553945.story
Later on in the same article he had this to say, “But Buffett said the U.S. economy will be fine in the long run. “Over time, my children are going to live better than I do, although they don’t believe it,” Buffett said.
Recessions come and go, but those who understand cycles and opportunity usually thrive during these times.
You may want to check out this article on CNBC about the history of recessions:
http://www.cnbc.com/id/20510977/
I found this on a blog about thriving during a recession. The author had 6 suggestions but I want to key in on three.
“Call the shots when buying a house. Prices in many markets are falling, of course, and while buyers need to be as careful as ever about speculating, those in for the long haul can find some great buys. It’s critical to research sales of comparable homes, remodeling records, and other data available at sites like zillow.com and trulia.com. In addition to falling prices, buyers may be surprised to find that with activity drying up, they suddenly have the power to dictate the terms of a deal: Agents may be willing to cut commissions, sellers may agree to cover repairs or other costs they would have dismissed just a year ago, and contractors eager for work might lower their fees for additions or other home improvements.
Buy a distressed property. As an unfortunate outcome of the housing bust, more than a million foreclosed and distressed homes are likely to hit the market this year. It’s obviously unpleasant when families lose their homes-but somebody needs to buy them, sometimes at deeply discounted prices. Buyers of distressed homes usually end up dealing with the bank that has repossessed the home, not with the original owners. If you wait for such properties to show up in traditional listing services, you’ll probably miss out. Better places to look: the websites for banks and county offices that would know about foreclosures. Real-estate agents plugged into local happenings should also know.
Foreclosure deals are riskier than other real-estate transactions. Properties offered at public auctions often sell for more than they’re worth, so buyers can’t just assume that if it’s up for auction, it’s a steal. Buyers may not have time to conduct a thorough inspection or do other due diligence. Insiders may grab the best deals before they ever become public. But for careful buyers who do their homework, there may be plenty of opportunities”.
http://www.usnews.com/blogs/flowchart/2008/2/20/6-ways-to-thrive-during-a-recession.html
Keep your eyes on the opportunities during this time and especially look at real estate.
Till next time, Jim
Are We in a Recession?
Are we in a recession and if so, what does it mean to you? Buffett said in an interview with cable network CNBC that the reports he gets from the retail businesses his holding company owns show a significant slowdown in purchases.
“I would say, by any common-sense definition, we are in a recession,” the Berkshire chairman and chief executive said on CNBC.
http://www.chicagotribune.com/business/chi-tue-warren-buffettmar04,0,2553945.story
Later on in the same article he had this to say, “But Buffett said the U.S. economy will be fine in the long run. “Over time, my children are going to live better than I do, although they don’t believe it,” Buffett said.
Recessions come and go, but those who understand cycles and opportunity usually thrive during these times.
You may want to check out this article on CNBC about the history of recessions:
http://www.cnbc.com/id/20510977/
I found this on a blog about thriving during a recession. The author had 6 suggestions but I want to key in on three.
“Call the shots when buying a house. Prices in many markets are falling, of course, and while buyers need to be as careful as ever about speculating, those in for the long haul can find some great buys. It’s critical to research sales of comparable homes, remodeling records, and other data available at sites like zillow.com and trulia.com. In addition to falling prices, buyers may be surprised to find that with activity drying up, they suddenly have the power to dictate the terms of a deal: Agents may be willing to cut commissions, sellers may agree to cover repairs or other costs they would have dismissed just a year ago, and contractors eager for work might lower their fees for additions or other home improvements.
Buy a distressed property. As an unfortunate outcome of the housing bust, more than a million foreclosed and distressed homes are likely to hit the market this year. It’s obviously unpleasant when families lose their homes-but somebody needs to buy them, sometimes at deeply discounted prices. Buyers of distressed homes usually end up dealing with the bank that has repossessed the home, not with the original owners. If you wait for such properties to show up in traditional listing services, you’ll probably miss out. Better places to look: the websites for banks and county offices that would know about foreclosures. Real-estate agents plugged into local happenings should also know.
Foreclosure deals are riskier than other real-estate transactions. Properties offered at public auctions often sell for more than they’re worth, so buyers can’t just assume that if it’s up for auction, it’s a steal. Buyers may not have time to conduct a thorough inspection or do other due diligence. Insiders may grab the best deals before they ever become public. But for careful buyers who do their homework, there may be plenty of opportunities”.
http://www.usnews.com/blogs/flowchart/2008/2/20/6-ways-to-thrive-during-a-recession.html
Keep your eyes on the opportunities during this time and especially look at real estate.
Till next time, Jim