Companies Warren Buffett invested between 1998 and 2001 (Part 5)

Companies Warren Buffett invested between 1998 and 2001 (Part 5)

Mueller Industries: This is a Berkshire holding. Buffett is believed to have started buying Mueller Industries, the leading low-cost producer of copper plumbing fittings, tubes, and related products, during the October 2000 sell-off that knocked Mueller down from $32 a share to $21 against solid earnings of $2.16 a share. The company has been in business since 1917 (talk about durable) and has a low-cost infrastructure that allows it to stomp the competition. As of May 2001, Mueller is trading at $34 a share, giving Buffett a superfast 62% return on Berkshire's money. Buffett loves those fall sell-offs.

Price paid: $21 a share (Down from $32)
Earnings: $2.16 a share
Initial return: 10.3%
Per share earnings annual growth rate: -

Nike: Nike is the world's number one shoe company and has more than 40% of the U.S. sports shoe market. This shows up in Berkshire's portfolio, but we don't have any hard information on Buffett's purchase price. We believe he was buying Nike in 1998 and 2000 when it trading below $30 a share. Buying opportunities include a recession in the shoe business, a general recession, and a correction or panic sell-off.

Price paid: <$30 a share Earnings: - a share Initial return: - % Per share earnings annual growth rate: - % USG Corp: USG is the low-cost producer of wallboard and the number one maker of gypsum wallboard in the world. This is a classic bad-news play. As we write, the price of wallboard is falling and the company is facing asbestos litigation, which has dropped the stock's price from $45 a share to $10. Buffett is buying like crazy. So far he has acquired a 15% stake in the company. In June 2001, the company filed for bankruptcy, but many analysts thought this filing would actually help stabilize current operations. The verdict is still out on this one.

Price paid: $10 a share (Down from $45)
Earnings: $ - a share
Initial return: - %
Per share earnings annual growth rate: - %

Yum Brands: This owns three major fast-food brand names: KFC, Pizza Hut, Taco Bell. This is a Berkshire holding. We believe Berkshire begain its purchases in 2000 after the market crash at approximately $24 a share against earnings of $3.65 a share, which equates to an initial return of 15%. As of March 2002, the stock traded at $55 a share.

Price paid: $24 a share
Earnings: $3.65 a share
Initial return: 15 %
Per share earnings annual growth rate: - %


Related articles:
Companies Warren Buffett invested between 1998 and 2001 (Part 1)
Companies Warren Buffett invested between 1998 and 2001 (Part 2)
Companies Warren Buffett invested between 1998 and 2001 (Part 3)
Companies Warren Buffett invested between 1998 and 2001 (Part 4)
Companies Warren Buffett invested between 1998 and 2001 (Part 5)