A Bourse Diary

Thoughts on stocks, speculation and ... life

Sunday, May 07, 2006

Warren Buffett comments on real estate, commodities

Warren Buffett's comments on some hot (or "problematic") areas in the global financial markets on the annual meeting of Berkshire Hathaway: the real estate and commodity markets.

In brief:

The real estate market was a bubble to some degree, and we may see continuation in the slowing observed recently. Especially in the high-end of the market and where homes were purchased as investments "significant downward adjustments" seem possible.

Probably even more speculative is the situation on the commodity markets, where prices have risen quite above the fundamentals and more and more traders get involved only for speculative reasons.

Nice to read the summary at marketwatch.com

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Disclaimer: All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and are in no way intended to serve as personal investing advice and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Readers should not make any investment decision without first conducting their own thorough due diligence. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. While the information provided is obtained from sources believed to be reliable, its accuracy or completeness cannot be guaranteed.