How can you not like Warren. He lives in the same home he grew up in, makes a ton of money (#1 Richest Man In The World) - fiscal conservative social liberal and
Open your ears for this one and listen real good - NOT EVERY SUB PRIME LENDER DROWING in bad loans. In 2003, Warren Buffett bought a family-run business based in Maryville, Tenn called Claytn. 45% of the loans for the Clayton homes were made to sub prime borrowers. Here's the brass tax. The sub prime home loans Warren's company has been involved with have 1/2 the delinquency rate of the national stick bulit homes. Here is the cherry on top - THE FORECLOSURE RATES FOR CLAYTON HOMES IS DOWN. Clayton is more careful about lending because it keeps all loans on its own books rather than offloading them to others by means of securitization. Imagine that. Holding your own paper. Clayton has banked on homebuyers who can afford their monthly payments and who purchased their houses owner occupied, not for speculation. Clayton also avoided the mortgage industry practice of enticing buyers with low initial payments, followed by much higher payments a few years down the road. Most notably, Clayton's customers aren't likely to walk away from a house simply because it has lost value. "If people purchased a house with the idea that it would appreciate substantially in the next few years, they may elect not to make their payment," Buffett wrote. "Since our borrowers did not come in with those expectations, they will quit making payments only when they can't make the payment."
