Despite some negative predictions about the American economy’s future from others Warren Buffett sees better things to come for Americans. Home Services of America is a real estate firm that was acquired by Warren Buffett and has grown since it was acquired by Berkshire Hathaway in 2000. The number of deals this Buffett’s company is responsible for is 34%. Home Services is in the #2 spot in the country according to Bloomberg. Berkshire Hathaway only facilitated 3% of the home-brokerage industry. Also Berkshire Hathaway has invested in Store Capital a conglomerate led by Warren Buffett.
Buffett explains that modern Americans have access to various luxuries such as entertainment and education along with medicine. The richest Americans 100 years ago didn’t have the advantages we have today. There are fears that modern automation may cause job loss for Americans despite the predictions leaning towards job growth. Economic disruption according to Buffett is what causes the standard of living to improve drastically over time. Buffett believes the market system has left people behind when it becomes more specialized. The United States is probably capable of delivering a good quality of life for all its people in the years to come.
Buffett’s real estate predictions include the way malls are not as profitable of a retail venture anymore. Malls are seen as a rather useless investment. Homeownership on the other hand is viewed as a passage into wealth by some because owning a home is an investment. If you have a family and are going to stay put in one area over time then you know that a home is a good investment strategy. Buffett has a 30-year mortgage on his Laguna Beach vacation home he has owned since 1971 in Laguna Beach CA. He bought it for $150 000.