American Homes: Buy

Investment ideas are cyclical. They come and go, like fashions or cicadas, obeying their own curious rhythms. In the last few years, rare was the investment thinker who said you should buy a house. Housing was in a bubble that was deflating.

But the investment seasons turn. Today, some smart investors are once again saying you should a buy house. John Paulson was one of them.

You may know him as the man who turned the greatest trade of all time. Betting against the housing market, he netted a cool billion dollars for himself in 2007. One fund he managed rose 590 percent that year. Today, he is one of the richest men in America.

His advice, recently, was different. “If you don't own a home, buy one,” Paulson said. “If you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.”