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Bill Ackman - Waiting for a Bounce from the Lowe's
Posted by: CanadianValue (IP Logged)
Date: November 12, 2011 09:09AM
Warren Buffett has been saying that there won't be a booming recovery until the housing market starts to recovery. Buffett has also been saying through the turbulence of the markets recently that all of Berkshire's operating businesses other than housing are performing well.
I think a very sensible strategy for a very long term investor is to make some investments that will profit from the eventual housing recovery. Companies that aren't making much now could rapidly expand earnings and cash flow in better times.
One investor doing this is Bill Ackman who is interested in Lowe's as detailed in this presentation:
Re Bill Ackman - Waiting for a Bounce From the Lowe s
Posted by: kfh227 (IP Logged)
Date: November 12, 2011 11:43PM
Buffett has also said that he sees unemployment below 8% before the presidential election. And hte interviewer got 7.2% as the actual number he placed a friendly bet on.
Since then though, the US has created a new policy of kicking out illegals. With a goal of something like 400,000 per month. So, policy is probably going to delay Buffett's ideas.
I did the research on this on my own. I want to write an article but havn't the time. Short of it, we had an excess of 1.5 million starts if you look at the boom era. We have had about 1.5 million towards a deficit to date. the tipping point is near.
All the info you need is here:
The whole building sector is depressed and represnt value. half my portfolio is on this bet.
The best bet is long dated USG calls. The 20 calls out to 2014 are cheap! 30 cents maybe.
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