When looking for wise investments, manufactured housing stocks and funds that include MH companies are at times a good choice. Seeking Alpha tells MHProNews that Clayton Homes’ parent company, Berkshire Hathaway, is still 14% undervalued relative to its fair intrinsic value and that the fund generates solid profit growth. Berkshire’s revenue and profit grew by 8.5% in the first nine months of 2014 versus YTD 2013. Alpha specifically mentions Warren Buffett’s fabled firm in connection with Clayton Homes.
Berkshire generated a 9.29% ROE even though more than 60% of its book value is comprised of non-earning assets and low-earning assets such as bonds, cash or goodwill. Despite this fact, hedge fund manager and well-known value investor Whitney Tilson still sees value in Berkshire.
Warren Buffett took control of Berkshire Hathaway in 1964 and in 1985 began diversifying its operations. Since then, the company has expanded into a diversified conglomerate with a market capitalization of $369B. Berkshire benefits from a very low corporate overhead burden as only 25 of its 302,000 employees work in its Omaha corporate headquarters.
The story of how Clayton came to be a Berkshire-Hathway company is told in the video interview with the factory-home builder’s founder, Jim Clayton, at this link here. ##
(Photo Credit: Clayton Homes)
Article Submitted by Sandra Lane to – Daily Business News- MHProNews.
