Warren Buffett Is Buying Homes

A lot can be learned from the moves of Warren Buffett. He is widely regarded as the best investor of all time. Buffett has been turning his attention to real estate lately. His company, Berkshire Hathaway (BRK-A) recently purchased Schiller Real Estate for an undisclosed amount. Schiller Real estate is a major property brokerage firm in Chicago, Illinois. The Schiller purchase means that Buffett must believe that the real estate market is stabilizing and that prices are undervalued. Buffett is a value investor and has a history of buying out of favor assets. Berkshire subsidiary, HomeServices of America is the 2nd largest residential brokerage company in the United States. Combine that with Buffett's purchase of loan origination company, Capmark Financial Group for $490 million dollars and it seems that Buffett is betting on a recovery in the housing market.