I dont think there is a better explanation of the bubble we're in. You have to read this, and think how ridiculous things really are:
Buffett: "I recently sold a house in Laguna for $3.5 million. It was on about 2,000 square feet of land, maybe a twentieth of an acre, and the house might cost about $500,000 if you wanted to replace it. So the land sold for something like $60 million an acre."
Munger: "I know someone who lives next door to what you would actually call a fairly modest house that just sold for $17 million. There are some very extreme housing price bubbles going on."
I recently sold a house in Laguna for $3.5 million. It was on about 2,000 square feet of land, maybe a twentieth of an acre, and the house might cost about $500,000 if you wanted to replace it. So the land sold for something like $60 million an acre
I was talking to some friends about this a week or so ago. He is an intellignet investor on all fronts, isn't he. Prices do look a bit high when you put it into perspective, don't they?
Wow! That is really out of control! I wish I had some property in Laguna from before the whole boom! :goofy:
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