Buffett: Nebraska Furniture Mart Will Do Over $1B Sales Annually

Buffett strongly believes that Nebraska Furniture Mart will do a lot of business, and it will become very big

Billionaire investor, Warren Buffett said Nebraska Furniture Mart will achieve more than $1 billion in annual sales during an exclusive interview with Liz Claman of Fox Business News.

Nebraska Furniture Mart is the largest home furnishing store in North America, and it is a subsidiary of Berkshire Hathaway, the multinational conglomerate controlled by Buffett. The home furnishing store is set to open its new warehouse with an area of 1.3 million square feet at Forth Worth, Texas.

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Buffett is confident that Nebraska Furniture Mart will become “very big”

During the interview, Buffett said the management of Nebraska Furniture Mart does not want him to say his sales expectation, but he did otherwise. According to him, “They don’t want me to say this number, but I’ll say it anyway because I really believe, I believe the store will do over $1 billion.”

Buffett is confident that Nebraska Furniture Mart would achieve his expectation because of the fact that it is the largest home furnishing store in the United States, and it is in the 50th largest market.

“We do $450-$475 million a year. We do $20 million in the week of Berkshire meeting so can do a lot of business. I think it’s gonna be very big,” added Buffett.  The management of Nebraska Furniture Mart’s official annual sales estimate is $600 million.

Buffett likely to buy small businesses in Europe

When asked if he made any currency bets Europe, Russia or anywhere; he said no. the billionaire investor clarified that he made currency bets a many years ago. “We have so many different operations that I can’t tell whether the dollar going up or down is bad for us…”

Buffett also disclosed his intention to acquire a small business in Western Europe and more businesses in other regions around the world. “We’d like to buy more businesses around the world,” he said.

Buffett believes that raising interest rates would be tough

During the interview, Buffett commented that it would be difficult for the Federal Reserve to implement an interest rate hike this year.  He said, “I think it’s going to be very tough to raise rates when you’ve got what’s going on around the world.”

The Federal Reserve is contemplating on raising the interest rates since the U.S. economy is growing at a solid pace, however the slow growth around is preventing the central bank from changing its policy. Policy makers recently reiterated their position that they will remain patient regarding the timing of increasing the interest rates.