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Warren Buffett, known in the investing world as the Oracle of Omaha, is making a move into the world of lending. Of course it’s not his first. Plenty of times while he’s been building a personal net worth of over $40 Billion he’s used the banks’ money to further his investments. But this time is a little unusual.

Buffett, through his company Berkshire Hathaway, has raised $750 Million for a manufactured home builder. Huh? Warren Buffett is betting on the home building industry at a time when the market seems to be in a downward spiral? Yes.

“To me this is classic contrarian investing in the sense that you become aggressive when everyone else is pulling back,” says another index-beating value investor, Robert Rodriguez, whose First Pacific Advisors also has exposure to the sector. “I was encouraged to see that capital was being allocated to this industry. I view that as a positive*.”

It makes sense - Buffett isn’t known for following the crowd and obviously that’s worked well for him. He must see that as it gets more difficult for consumers to borrow large amounts of money for home, the manufactured home industry is likely to surge.

Young investors and entrepreneurs would be wise to note that this opportunity presented itself to Mr Buffett because he’s spent his whole career building his credibility and corporate credit rating - his is AAA. It’s under those conditions that huge lenders are going to be willing to let him borrow $750 Million. Think about how much money that is. If you have enough pull with lenders for them lend to you on that scale, and if you have a profitable way to use that borrowed money, it’s easy to see how you could amass some real wealth for yourself as well right?

*Source: msn.com