The billionaire U.S. investor Warren Buffett said Saturday that he had “royally deceived” by predicting a recovery in property market in the U.S., but added that his optimism was always dealt face up to the national economy .
In his annual letter to shareholders of Berkshire Hathaway, Mr. Buffett said he believes that the real estate market will resume at one time or another, and that this recovery will help lower the unemployment rate in the country. However, he did not set a timetable for the realization of this scenario.
Investors are anxiously awaiting the letter from Mr. Buffett, nicknamed the “Oracle of Omaha”. The man of 81 years has built a colossal fortune of 44 billion USD meticulously observing an investment strategy.
Mr. Buffett said that the property sector was still mired in its “own depression,” but added that this market will be back because of some distinct characteristics of the human condition. He has ensured that people could delay the time to get back in the saddle, but at some point, the “hormones” regained the upper hand.
Real estate has proven a difficult market for Berkshire Hathaway, which owns more than 80 subsidiaries including insurance company Geico and See’s Candy, and five of them depend on the construction sector.
These companies, which include Acme Brick, Clayton Homes and Shaw carpet, generated a profit before tax of 513 million USD last year. These figures are well below the 1.8 billion USD in Berkshire that they had reported in 2006.
Mr. Buffett has offered in his letter, some details about the steps of Berkshire to replace him. Investors have long been concerned about Mr. Buffett’s successor as president and COO of the group.
The man said the board of Berkshire was satisfied with the selected frame and there were two other replacement candidates.