Warren Buffet investing in Real Estate

http://www.sltrib.com/sltrib/money/51332012-79/buffett-berkshire-company-partners.html.csp

Buffett: Berkshire

will invest in U.S.

12:12AM
Updated Mar 1, 2011 12:12AM

Warren Buffett does not put a title on his annual letter, but if he did, this year's dispatch might be headlined "God Bless the USA."

In the face of persistent worries about the American economy, the country's most famous - and closely followed - investor struck a patriotic tone in his report to shareholders of his company, Berkshire Hathaway, writing that "money will always flow toward opportunity, and there is an abundance of that in America."

He also advised Americans to be wary about borrowing money and the games public companies play with profit numbers they report.

Buffett said that Berkshire last year spent more than $5 billion on property and equipment in the United States - 90 percent of the company's total expenditure - and that the overwhelming part of the company's future investment will be at home.

"Commentators today often talk of ‘great uncertainty.' But think back to December 6, 1941, October 18, 1987, and September 10, 2001," Buffett wrote, referring to the days before the Pearl Harbor attack, a stock market crash and terrorist attacks in the U.S. "No matter how serene today may be, tomorrow is always uncertain. Don't let that reality spook you."

He said a housing recovery will likely begin within the next year, which would help the economy and several Berkshire subsidiaries, including ones that make carpets and bricks. The letter was full of good news for Berkshire investors because nearly all of its businesses, except the ones linked to housing, performed well, said Glenn Tongue, a managing partner at T2Partners investment firm.

Dispensing financial observations in a folksy manner, the yearly dispatch from the 80-year-old Buffett has become something of a state of the union address for Wall Street and, more broadly, for the global economy.

But the letter also serves as an update for Buffett's most important constituency - the shareholders in Berkshire, an investment holding company that in Utah owns Rocky Mountain Power and home furnishings retailer RC Willey.

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