Mistitled — & Misleading
[Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.]
“Tell me where I’m going go die, so I won’t go there.”
–Berkshire Hathaway’s Charlie Munger.
Sorry, notwithstanding its alluring title (“How to Avoid the Next Real Estate Downturn“), you’ll find no such guidance in The New York Times’ “Your Money” article.
In fact, unless you consider “Buy low, sell high” to be novel advice, a better title for the platitude-filled piece** would be “How to Weather the Next Real Estate Downturn.”
And exactly how do you do that?
According to the article, by having enough liquidity not to be forced to sell when prices are low.
Whenever that may be . . .
**Other examples: “Real estate has a good track record. But we know that downturns are going to come along from time to time”; and “The value of [residential real estate] is almost always a bet on appreciation, which is no guarantee.”
