The construction and the real estate sectors in Canada account for 20% of Canada’s GDP. Real estate agents are now the largest professionals in Canada, even more than doctors, lawyers, accountants, etc. The construction workers dominate the workforce of Canada today. The Canadian economy is now dependent on the housing sector.
There is a significant housing correction on the anvil in Canada. This could leave some banks to lose more than the other banks. The Canadian economy could take a big hit with the housing correction. Warren Buffett, the billionaire businessman, is watching all the things happening in the construction sector in Canada from the sidelines. He is ready to make a move and save the day if crisis befalls.
He has the habit of stepping in when the need arises and can save the fortunes of the leading financial institutions. By doing so, he earns a hefty profit. Berkshire Hathaway Inc, of Warren Buffett, has made a huge investment in Home Capital Group Inc. They have started to make a statement in Canada’s financial. This could come in very handy if the Canadian economy or the housing economy slumps. It can prove to be a very shrewd move and also turn out to be very profitable for Warren Buffett.