Warren Buffet is a real myth in the investment world. According to Forbes, he is the third richest man in the world after Bill Gates and Jeff Bezos. His estimated wealth is more than 80 billion dollars.
He is the paradigm of value investing, meaning that he invests in companies after studying their fundamental characteristics. For many people, this approach is much more reasonable than the technical analysis, which is usually used in a more speculative approach. However, the issue to follow an investment system similar to Buffet’s is that we do not have the same capacity to research and get information about the companies. Do you have a helicopter to visit the companies in which you are about to invest? He does.
If you are interested in investing in the Spanish real estate market, you will be happy to know that Warren Buffet thinks like you.
This month, several Spanish media outlets have informed that Berkshire Hathaway HomeServices, one of Buffet’s companies, has reached an agreement with Larvia, a real estate company focused on luxury properties.
Spain is not the only country in which the real estate market has attracted Buffet though. In the last months, Berkshire Hathaway HomeServices has also entered in Germany, England, Italy, and Dubai, always focusing on luxury properties.
The luxury nuance is important. While the Berksire Hathaway HomeServices’s chairman, Gino Blefari, left the door opened to the possibility of broadening the business to commercial, hotel, or logistics, he clarified that the approach would not be interested in residential properties that would not be categorised as luxury.
What does this mean to the average investor?
The presence of Buffet in a market always brings a lot of interest. However, there is not much value here for an average investor. Big capitals usually look for the long-term and the opportunity they see in this market. It may need too much time to flourish for someone looking to invest.
If you are about to invest in Spanish real estate, we highly recommend that you do your own due diligence and not just rely on copying what the big names do.
First, this news is always released within a strategy approach. Big names know that their actions are followed by many other investors, so they release the news at the best moment for them, not for the investors.
Nowadays, Spain is a country with serious political issues. Some of them, like the Catalonia region’s independency fight, can affect the real estate market severely. Get help from an independent expert before committing an important amount of money.