Buffett: Will the US housing market revive the furniture industry to usher in a new opportunity?

Buying a home is a smart choice for most Americans

This is our smallest department, including two leasing companies, XTRA, which operates trailer leasing, and CORT, which operates furniture leasing, and Clayton, the nation's largest prefabricated home builder and financing company. Clayton Homes).

The performance of the two leasing companies improved last year, albeit on a poor basis. XTRA's equipment utilization increased from 63% in 2009 to 75% last year, and pre-tax profit increased from $17 million to $35 million. The company's business has gradually recovered, making it a turnaround. $18 million in pre-tax profit.

Clayton built 23,343 homes last year, accounting for 47% of the industry's 500,46 units. Last year's sales performance was not good, and the financing problems I mentioned in my 2009 report have intensified our pressure. Specifically: the US government's housing loan policy favors ordinary homes, which weakens the price advantage of prefabricated homes.

Considering that today's US housing prices and interest rates are low, buying a home is a wise choice for most Americans. I personally regarded the purchase of my home as my third successful investment. I only spent $31,500. My family and I have won 52 years of good memories and will continue to benefit in the future. The first two successful investments are to buy a pair. Wedding ring).

Still, if the buyer's vision is higher than his financial ability, and the bank fuels his fantasies, then the housing can become a disaster. The social goal of our country should not be to let families enjoy dream homes, but to live in affordable housing.

Investment tips

Healthy development of insurance business requires four criteria

(1) Understand that all risk exposures may cause losses;

(2) conservatively estimate the probability that any risk exposure actually causes losses;

(3) The determination of the premium amount shall ensure the profit, including future loss costs and operating expenses;

(4) Abandon this business if you cannot obtain reasonable premiums.

Future judgment

The US housing market will begin to recover within a year, possibly at a certain point in time.

If the buyer’s vision is higher than his financial ability, and the bank fuels his fantasies, the housing can become a disaster.

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